14:40:47 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Advantage Lithium Corp
Symbol AAL
Shares Issued 141,338,863
Close 2018-05-22 C$ 1.09
Market Cap C$ 154,059,361
Recent Sedar Documents

Advantage Lithium, Orocobre release Cauchari resources

2018-05-23 02:41 ET - News Release

Also News Release (C-ORL) Orocobre Ltd

Mr. David Sidoo reports

ADVANTAGE LITHIUM ANNOUNCES AN UPDATED RESOURCE ESTIMATE OF 3.0 MT LCE AT CAUCHARI

Advantage Lithium Corp. and Orocobre Ltd. have provided an updated resource estimate for the companies' flagship Cauchari project in Jujuy, Argentina, based on the phase 2 drilling results. The update, prepared by FloSolutions SAC, has increased the inferred resource to a volume of approximately 1,200 million cubic metres of brine at average grades of 450 milligrams per litre lithium and 4,028 milligrams per litre potassium for 3.0 million tonnes of lithium carbonate equivalent (LCE) and will be the basis for the companies' preliminary economic assessment (PEA) scheduled for completion in second quarter 2018.

David Sidoo, the founder and chief executive officer of Advantage Lithium, commented on the significant resource upgrade for the Cauchari project: "In the span of just over a year, we have delivered a greater-than-600-per-cent increase to the lithium resource at our Cauchari project. This achievement reflects both the world-class nature of our project, as well as the expertise and focus of the project development team in Argentina. We are confident that our phase 3 program, already under way, will continue to deliver strong results and expand the resource further. In parallel with our phase 3 program, Advantage will be aiming to complete a PEA [preliminary economic assessment] in second quarter and then progress immediately to a definitive feasibility study for a potential 20,000 tonnes per annum of lithium carbonate."

  • More-than-sixfold increase of the inferred resource to 3.0 mt LCE at Cauchari at 450 milligrams per litre lithium;
  • The updated resources cover a significantly larger area and extend to greater depths in the northwest and southeast sectors;
  • Significant potential for additional resource expansion at depth;
  • The brine has excellent chemistry for processing, and the magnesium-to-lithium ratio averages 2.5, very similar to Orocobre's Olaroz project;
  • Phase 3 drilling is under way to upgrade this inferred resource and underlying brine to measured and indicated resources for the DFS scheduled for completion in second quarter 2019.

The companies intend to submit a full technical report within 45 days of this filing, in accordance with the requirements of National Instrument 43-101 to support the conclusions presented herein.

Updated Cauchari resource

The 2017/2018 drilling program has expanded the resource at Cauchari to 3.0 mt lithium carbonate equivalent (LCE) of inferred resource across both the northwest and southeast sectors in about 1.2 cubic kilometres of brine at 450 milligrams per litre lithium and 4,028 milligrams per litre potassium (based on 5.32 tonnes of lithium carbonate, equivalent to one tonne of lithium) with 9.5 mt of potassium chloride (based on one tonne potassium chloride, equivalent to 1.91 tonnes of potassium). This is an expansion of six times the historical resource of 470,000 tonnes of lithium carbonate equivalent, which were limited to the northern area of the southeast sector (refer to the AAL announcement of Dec. 22, 2016). The average grade of the entire resource has increased to 450 milligrams per litre Li and 4,028 milligrams per litre K. Locally higher grades were encountered in the northwest sector in areas such as production hole CAU07 (601 milligrams per litre during 48-hour pumping test) and in the Deep sand unit in CAU11 (515 milligrams per litre during 48-hour pumping test). The results of the estimation are summarized in the attached lithium and potassium resource estimate table.

Andy Robb, vice-president of project development, commented, "This is an excellent result, which we believe will continue to improve in terms of both grade and size as we move through our phase 3 drill program targeting the extent of the salar at depth."

The brine resource is calculated over the northwest and southeast sectors of the Cauchari project and covers an area of 92.6 square kilometres. The brine resource in the northwest sector extends from the brine level below the Archibarca fan to a depth of up to 300 metres. The brine resources in the southeast sector extend from the phreatic brine level to a constant depth of 300 m and continue locally as a separate resource volume in the Deep sand unit between an approximately 400-metre and 480-metre depth (as defined by Deep sand drilling intercepts in holes CAU11, CAU12 and CAU13). None of the boreholes completed to date have intercepted bedrock (basement), and the resource remains open at depth. A significant exploration target has been defined below the current inferred resources as further discussed in the attached geological potential table.

             CAUCHARI PROJECT LITHIUM AND POTASSIUM RESOURCE ESTIMATE; MAY 23, 2018
  
                                    Inferred resources (lithium cut-off of 300 milligrams per litre)
Limit                                     NW sector               SE sector                   Total

Resource area (km2)                            35.2                    57.4                    92.6
Aquifer volume (km3)                            6.5                    13.9                    20.4
Mean specific yield (Sy)                          9%                      4%                      6%
Brine volume (km3)                              0.6                     0.6                     1.2
Element                              Li           K          Li           K          Li           K
Mean
concentration (mg per l)            465       3,920         443       4,078         450       4,028
Mean grade (g/m3)                    44         373          20         184          28         244
Total resource (tonnes)         288,000   2,420,000     280,000   2,560,000     568,000   4,980,000
Lithium carbonate (tonnes)                1,530,000               1,490,000               3,020,000
Potash (tonnes)                           4,600,000               4,900,000               9,500,000

Notes: 
1. CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions were 
followed for mineral resources. 
2. The qualified person for this mineral resource estimate is Frits Reidel, CPG.
3. A lithium cut-off concentration of 300 milligrams per litre has been applied 
to the resource estimate. 
4. Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor 
of 5.32.
5. Potassium is converted to potash with a conversion factor of 1.91.
6. Numbers may not add due to rounding. 

Results of the brine chemistry analysis carried out to date indicate that the Cauchari brine is similar in composition to the brine in the adjacent Olaroz salar, from which Orocobre is producing lithium carbonate using conventional lithium processing technology. The attached brine chemistry characteristics table provides a summary of the Cauchari brine characteristics. The lower average lithium concentration of the total inferred resource compared with that of drill holes such as CAU07 and CAU11 (and other results released during the phase 2 drilling program) reflects the presence of lower concentration brine near surface in the southeast sector such as around holes CAU12, 13 and 14. The brine characteristics and hydraulic characteristics in the upper southeast sector are distinct from those in the northwest sector and the Deep sand unit. Pumping tests from the northwest sector and Deep sand have produced excellent flows with lithium concentration greater than 500 milligrams per litre lithium, as reported by the companies on Feb. 6 and March 5, 2018. There is a reasonable prospect that the Cauchari brine from these areas could be processed using similar technology to the Olaroz plant.

           CAUCHARI BRINE CHEMISTRY CHARACTERISTICS
  
  
Samples ratio         NW sector and Deep sand       Upper SE sector

Mg/Li                                     2.7                   2.5
SO4/Li                                   29.4                  69.6

Resource estimation methodology

The updated lithium resource estimate for the Cauchari project is based on the results of seven diamond holes and five rotary holes drilled during the phase 2 campaign in 2017/2018 and results of four diamond drill holes of the phase 1 campaign in 2011. Brine sample collection during the 2017/2018 program consisted of bailed and packer samples in the diamond holes, and packer and pumped samples in the rotary holes. A total of 449 brine samples (including 164 quality assurance/quality control samples) were analyzed by Norlabs (JuJuy, Argentina) as the primary laboratory and by Alex Steward Assayers (Mendoza, Argentina) and the University of Antofagasta (Chile) as secondary QA/QC laboratories. Additional brine QA/QC analyses were carried out on centrifuged samples collected by Corelabs in Houston, Tex.

HQ core was retrieved during the diamond core drilling from which about 172 primary undisturbed samples were prepared for laboratory drainable porosity and other physical determinations by Geo Systems Analysis (GSA) in Tucson, Ariz. Laboratory QA/QC porosity analyses are being undertaken by Corelabs.

The lithium resource was estimated using SGEMs software with ordinary kriging and applying a 300-milligram-per-litre-lithium-concentration cut-off. The resource estimate was prepared in accordance with the guidelines of National Instrument 43-101 and uses best practice methods specific to brine resources, including a reliance on core drilling and sampling methods that yield depth-specific chemistry and drainable porosity measurements. The resource estimation was completed by independent qualified person Frits Reidel of Santiago-based hydrogeology firm FloSolutions, with extensive experience in the estimation of lithium brine resources in Argentina.

Geological exploration target

The geological exploration target is estimated to range between 1.43 million and three million t LCE, primarily in the southeast sector beneath the current inferred resource area in the Deep sand unit to a depth of 600 m. The attached geological potential table provides the details of the geological exploration potential. The upper and lower ranges of the geological potential were bounded by two times the standard deviation around the calculated average lithium concentration of the overlying inferred resources. The Deep sand unit in the southeast sector was intersected below 360 m in CAU11, CAU12 and CAU13. A preliminary 48-hour pumping test in CAU11 at a pumping rate of 19 litres per second indicated that the Deep sand unit has excellent hydraulic characteristics. The geology of the Cauchari basin suggests there is good potential to convert brine within the exploration target to resources. Similar sand units have been intersected in the neighbouring Olaroz project.

                        CAUCHARI PROJECT -- GEOLOGICAL POTENTIAL 
                         
                                               Geological potential -- lower range (X-2SD)       

Limit                                     NW sector                     SE                  Total

Resource area (km2)                            35.2                   57.4                   92.6
Aquifer volume (km3)                            2.6                   12.8                   15.4
Mean specific yield (Sy)                         11%                     5%                     6%
Brine volume (km3)                              0.3                    0.6                    0.9
Element                                Li         K         Li           K         Li           K
Mean
concentration (mg per l)              281     2,320        281       2,320        281       2,320
Mean grade (g/m3)                      31       258         15         122         23         190
Total resource (tonnes)            80,000   670,000    190,000   1,550,000    270,000   2,220,000
Lithium carbonate (tonnes)                  430,000              1,000,000              1,430,000
Potash (tonnes)                           1,300,000              2,900,000              4,200,000

                                               Geological potential -- upper range (X+2SD)    
                            
Limit                                     NW sector              SE sector                  Total

Resource area (km2)                            35.2                   57.4                   92.6
Aquifer volume (km3)                            2.6                   12.8                   15.4
Mean specific yield (Sy)                         11%                     5%                     6%
Brine volume (km3)                              0.3                    0.6                    0.9
Element                               Li          K         Li           K         Li           K
Mean
concentration (mg per l)             594      5,735        594       5,735        594       5,735
Mean grade (g/m3)                     66        638         31         301         49         473
Total resource (tonnes)          170,000  1,650,000    400,000   3,840,000    570,000   5,490,000
Lithium carbonate (tonnes)                  900,000              2,100,000              3,000,000
Potash (tonnes)                           3,100,000              7,300,000             10,400,000

It must be stressed that an exploration target is not a mineral resource. The potential quantity and grade of the exploration target are conceptual in nature, and there has been insufficient exploration to define a mineral resource in the volume where the exploration target is outlined. It is uncertain if further exploration drilling will result in the determination of a mineral resource in this volume. The exploration target is where, based on the available geological evidence, there is the possibility of defining a mineral resource. Importantly, the exploration target is not to be considered a resource or reserve. It must be stressed the exploration target is based on a series of assumptions, and future drilling is required to determine the brine grade and formation drainable porosity values to establish whether a resource can be defined.

Phase 3 drilling and further resource expansion

The phase 3 resource definition drilling program is currently under way at the Cauchari project site. The phase 3 program will include additional diamond holes in the northwest and southeast sectors to upgrade the resource classification by second quarter 2019 to support the project's definitive feasibility study. The phase 3 drilling program is designed to provide a combined borehole density sufficient to upgrade the current inferred resources to the indicated and measured categories. The phase 3 drilling is also aimed at further defining resources in the Deep sand unit.

The technical information in this news release has reviewed and approved on behalf of the companies by Frits Reidel, a qualified person as defined in National Instrument 43-101. Full details of the drilling results, resource estimation methodology and quality assurance/quality control are provided in the NI 43-101 technical report.

About Advantage Lithium Corp.

Advantage Lithium is focused on developing its 75-per-cent-owned Cauchari lithium project, located in Jujuy, Argentina. The company also owns a 100-per-cent interest in three additional lithium exploration properties in Argentina: Antofalla, Incahuasi and Guayatayoc. The company is headquartered in Vancouver, B.C., and trades on the TSX Venture Exchange and the OTCQX Best Market in the United States.

About Orocobre Ltd.

Orocobre a dynamic global lithium carbonate supplier and an established producer of boron. Orocobre is dual listed on the Australia and Toronto stock exchanges. Orocobre's operations include its Olaroz lithium facility in northern Argentina, Borax Argentina, an established Argentine boron mineral and refined chemical producer, and a 29-per-cent interest in Advantage Lithium.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.