Ms. Ana Cabral reports
SIGMA LITHIUM COMMISSIONS LITHIUM CONCENTRATE PHASE 1 PRODUCTION PLANT AND PROVIDES DRILLING PROGRAM UPDATE
Sigma Lithium Resources Corp. has commissioned the phase 1 production plant on its property site in Minas Gerais, Brazil. This is a very significant step toward achieving full-scale commercial production at its Grota do Cirilo property -- targeted for the fourth quarter of 2019.
Sigma is also pleased to provide an update on the 2018 drilling campaign of its lithium deposits at its Grota do Cirilo property, including the assay results received to date. Sigma's diamond drilling campaign of about 30,000 metres is well under way and on track to achieve the goal of increasing the existing measured, indicated and inferred lithium mineral resources of 13.5 million tonnes to 37 million tonnes, validating the additional exploration potential previously identified in Sigma's existing National Instrument 43-101 Independent Technical Report filed earlier in 2018.
Commissioning of lithium concentrate phase 1 production plant
Sigma has commissioned its phase 1 production plant which includes a cost-effective dense media separation (DMS) process circuit. The plant is designed to produce a high-quality battery-grade coarse spodumene concentrate with 6 per cent lithium dioxide.
The production plant is modular and is expected to initially produce 12,000 tonnes of lithium spodumene concentrate per year. The plant has a two-stage crushing circuit with a capacity of 60 tonnes per hour (doubled from the original design). The DMS unit produces two coarse fractions of concentrate of over four millimetres to minus 10 mm and over 10 mm to minus 20 mm. Sigma continues to test ore sorter technologies, in order to include an ore sorter as a first-stage module of the production plant, to further increase its downstream capacity in the future.
The production plant is being commissioned with the aim of finalizing offtake agreements with potential clients and partners. The spodumene concentrate produced from the plant will be used as large size samples in Sigma's continuing offtake discussions.
"We are very pleased to commission this phase 1 production plant," said Calvyn Gardner, chief executive officer of Sigma. "Having built this facility now showcases our battery-grade concentrate and enables us to ship samples to potential strategic partners. This will position us to finalize offtake agreements well before we are in commercial production in 2019."
Advancing the definitive feasibility study blasting a 200-tonne bulk sample at Xuxa deposit
Sigma is also pleased to announce that it opened two large trenches in the Xuxa deposit and blasted approximately 7,000 tonnes of material. A bulk sample of approximately 200 tonnes was produced from the Xuxa deposit for the additional metallurgical testing required for the completion of its definitive feasibility study.
The 200-tonne sample was removed from two large trenches opened across the width of the pegmatite. Trench 1 was opened where the historical drill assays showed 1.64 per cent Li2O (DH Xuxa-1) and trench 2 was opened where the assays showed 1.58 per cent Li2O (DH Xuxa-5) and 1.70 per cent Li2O (DH Xuxa-6). A second bulk sample of approximately six tonnes of drill core material was also produced. This sample has been collected across the deposit, as part of a continuing diamond drilling program at Xuxa of about 5,000 metres. The goal of the program is to produce a representative sample that will be processed at SGS Lakefield facilities in Ontario, defining design criteria for the metallurgical portion of the definitive feasibility study and for the commercial production plant design.
"We are on schedule to have the definitive feasibility study level 3 completed by January, 2019," commented Itamar Resende, president of Sigma Mineracao, the corporation's Brazilian subsidiary. "This study is one of the key milestones for Sigma to achieve commercial production, as our large-scale plant design will be finalized based on the results of this study. Once we complete it, the only remaining step will be the detailed engineering."
Reporting drill results to date on Grota do Cirilo lithium property
Sigma is pleased to provide an update on the progress of the comprehensive drilling campaign under way at the Grota do Cirilo property. The assay results received to date further validate the project's mineral resource estimates provided in Sigma's National Instrument 43-101. They also outline the potential for the total resource volume to be significantly increased.
In late May, 2018, the Sigma team commenced a diamond (HQ core) drilling campaign of about 30,000 metres to extend and develop the existing Grota do Cirilo spodumene lithium mineral resource. Once completed, this drilling campaign will be the basis for a revised mineral resource estimate, to be prepared by SGS Canada Geostat, which is expected to be finalized by the end of 2018.
The drilling program is divided into two work streams:
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A drilling program of 5,000 metres for the definitive feasibility study of the Xuxa deposit, Sigma's cornerstone mine. The drilling consists of 25 holes focusing on: (i) increasing the size of the mineral resource, (ii) producing metallurgical samples at depth and (ii) conducting geotechnical studies;
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A definition drilling campaign of 25,000 metres for the additional four lithium deposits in the property (Barreiro, Lavra do Meio, Murial and Nezem do Chicao) contemplating drilling 72 holes at Barreiro, 19 at Lavra do Meio, 25 holes at Murial and three holes at Nezem do Chicao.
Mr. Gardner added: "This drilling campaign has been an unmitigated success thus far. Given our progress to date, we believe our goals of significantly increasing the mineral resource at Xuxa and increasing its mine life are both quite achievable. In addition, the positive assay results of the other deposits of Grota do Cirilo we have received to date demonstrate the potential for Sigma to become a significant participant in the global lithium industry."
The drilling assays received to date from the definition drilling campaign for three of the lithium deposits (Xuxa, Barreiro and Lavra do Meio) are as follows.
Xuxa
The Xuxa drilling campaign contemplates 25 holes (about 5,000 metres), of which 16 have been completed, totalling 2,998 metres at an average depth of 187 metres. Sigma has received 16 per cent of the assays results to date and the current results indicate the potential to increase the level of confidence of mineral resources between zero and 200 metres vertical from the surface.
All the assays currently received demonstrate the continuity of the mineralization down to 200 metres and in some cases even down to 285 metres. The expansion of the mineralized zone down to 200 metres at Xuxa will allow the company to further upgrade the mineral resource, adding additional volume. The geological 3-D model is currently being updated, while the remaining assays are pending.
Highlights from the Xuxa assays are:
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22.8 metres at 1.86 per cent Li2O in five veins, held in 213.8- to 240.9-metre interval (drill hole DH-Xuxa-67);
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9.6 metres at 1.6 per cent Li2O from 134 to 143.6 metres (drill hole DH-Xuxa-68);
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4.1 metres at 1.78 per cent Li2O from 192.6 to 196.7 metres (drill hole DH-Xuxa-68);
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19.9 metres at 1.86 per cent Li2O from 143.37 to 163.24 metres (drill hole DH-Xuxa-70).
Barreiro
The Barreiro drilling campaign contemplates 72 holes (about 10,800 metres), of which 55 holes have been drilled to date, for a total of 7,615 m. Average thickness of the deposit is around 30 m, the average drill hole depth is around 138 m and deepest hole drilled to date is 279 m.
Sigma received 30 per cent of the assay results indicating that Barreiro could potentially become a significant world-class hard-rock deposit, on a similar scale to the Xuxa deposit.
Highlights from the Barreiro assays are:
- 36.1 metres at 1.50 per cent Li2O from 57.9 to 94 metres (drill hole DH-Bar-6);
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29.4 metres at 1.80 per cent Li2O from 85.6 to 114.9 metres (drill hole DH-Bar-8);
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33.8 metres at 1.62 per cent Li2O from 56.9 to 90.7 metres (drill hole DH-Bar-10);
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37.0 metres at 1.53 per cent Li2O from 60.4 to 97.4 metres (drill hole DH-Bar-14);
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21.5 metres at 1.56 per cent Li2O from 92.4 to 113.9 metres (drill hole DH-Bar-18);
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41.9 metres at 1.88 per cent Li2O from 80.9 to 122.7 metres (drill hole DH-Bar-31);
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22.4 metres at 1.62 per cent Li2O from 111.8 to 134.1 metres (drill hole DH-Bar-33);
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37.1 metres at 1.62 per cent Li2O from 68.3 to 105.3 metres (drill hole DH-Bar-38);
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38.0 metres at 1.79 per cent Li2O from 117.8 to 155.9 metres (drill hole DH-Bar-40).
Lavra do Meio
The Lavra do Meio deposit is a 250-metre dike dipping around 75 degrees to the east.
The Lavra do Meio drilling campaign contemplates 19 drill holes (about 4,000 metres), of which 15 holes have been drilled to date for a total of 1,958 metres. Sigma received 53 per cent of the assay results.
Average thickness of the deposit is around 20 metres, the average drill hole depth is around 131 metres and deepest hole drilled to date was 241 metres.
Highlights from the Lavra do Meio assays are:
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27.6 metres at 1.78 per cent Li2O from 38.8 to 66.4 metres (drill hole DH-LDM-4);
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31.9 metres at 1.31 per cent Li2O from 94.5 to 126.3 metres (drill hole DH-LDM-5);
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38.5 metres at 1.30 per cent Li2O from 95.5 to 134 metres (drill hole DH-LDM-8);
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22.8 metres at 1.14 per cent Li2O from 149.7 to 172.5 metres (drill hole DH-LDM-14).
The geological 3-D model for the various deposits is currently being updated, while assays are pending.
The mineral estimation will be carried out by SGS. Samples are prepared and analyzed by SGS in its accredited laboratories in Lakefield, Canada, and in Belo Horizonte, Brazil.
The attached table sets out the assay results received to date for the 2018 drilling campaign.
DH_ID From To Int. (1) Geo Li2O% average
DH-BAR-07 60.28 62.73 2.45 PG_Li 1.08
DH-BAR-07 70.83 103.84 33.01 PG_Li 1.97
DH-BAR-08 85.60 114.96 29.36 PG_Li 1.80
DH-BAR-08 117.83 148.05 30.22 PG_Li 1.09
DH-BAR-09 35.70 69.59 33.89 PG_Li 1.17
DH-BAR-10 53.75 54.52 0.77 PG_Li 2.25
DH-BAR-10 56.88 90.68 33.80 PG_Li 1.62
DH-BAR-11 28.92 53.50 24.58 PG_Li 1.36
DH-BAR-12 81.16 84.22 3.06 PG_Li 0.37
DH-BAR-12 84.89 102.41 17.52 PG_Li 1.06
DH-BAR-13 102.8 126.91 24.11 PG_Li 1.35
DH-BAR-14 49.05 58.66 9.61 PG_Li 0.45
DH-BAR-14 60.38 97.41 37.03 PG_Li 1.53
DH-BAR-14 98.77 102.50 3.73 PG_Ab_Q 0.10
DH-BAR-15 71.95 94.37 22.42 PG_Li 1.19
DH-BAR-15 113.16 114.85 1.69 PG_Li 0.53
DH-BAR-16 63.92 98.80 34.88 PG_Li 1.24
DH-BAR-17 114.13 123.09 8.96 PG_Ab_Q 0.04
DH-BAR-17 135.79 138.19 2.40 PG_Ab_Q 0.07
DH-BAR-18 92.39 113.86 21.47 PG_Li 1.56
DH-BAR-19 88.25 89.82 1.57 PG_Li 0.76
DH-BAR-19 91.13 101.74 10.61 PG_Li 1.41
DH-BAR-20 102.04 103.92 1.88 PG_Ab_Q 0.04
DH-BAR-21 14.89 32.77 17.88 PG_Li 1.12
DH-BAR-21 33.36 34.37 1.01 PG_Ab_Q 0.04
DH-BAR-22 179.00 189.50 10.50 PG_Li 1.39
DH-BAR-23 96.00 96.72 0.72 PG_Q 0.20
DH-BAR-23 97.51 105.65 8.14 PG_Li 0.24
DH-BAR-24 24.95 25.72 0.77 PG_Ab_Q 0.04
DH-BAR-24 26.22 27.36 1.14 PG_Ab_Q 0.05
DH-BAR-24 28.09 30.70 2.61 PG_Li 0.28
DH-BAR-24 41.52 42.32 0.80 PG_Ab_Q 0.05
DH-BAR-24 47.53 51.51 3.98 PG_Li 1.01
DH-BAR-24 59.23 60.07 0.84 PG_Ab_Q 0.12
DH-BAR-24 63.27 67.47 4.20 PG_Li 1.26
DH-BAR-24 88.33 90.15 1.82 PG_Ab_Q 0.42
DH-BAR-24 91.22 109.22 18.00 PG_Li 1.23
DH-BAR-26 59.28 77.21 17.93 PG_Li 1.10
DH-BAR-27 32.71 34.60 1.89 PG_Ab_Q 0.03
DH-BAR-27 43.78 47.17 3.39 PG_Ab_Q 0.23
DH-BAR-27 49.77 56.12 6.35 PG_Li 0.40
DH-BAR-27 111.20 125.19 13.99 PG_Li 1.09
DH-BAR-28 9.66 26.60 16.94 PG_Li 0.18
DH-BAR-31 80.85 122.71 41.86 PG_Li 1.88
DH-BAR-32 73.6 74.39 0.79 PG_Ab_Q 0.06
DH-BAR-32 78.42 79.19 0.77 PG_Ab_Q 0.04
DH-BAR-32 85.56 105.07 19.51 PG_Li 0.98
DH-BAR-32 108.58 118.93 10.35 PG_Li 1.00
DH-BAR-33 96.81 108.83 12.02 PG_Li 1.46
DH-BAR-33 111.76 134.11 22.33 5PG_Li 1.62
DH-BAR-38 68.26 105.31 37.05 PG_Li 1.62
DH-BAR-40 117.82 155.86 38.04 PG_Li 1.79
DH-BAR-40 157.62 163.31 5.69 PG_Li 1.01
DH-BAR-40 167.68 170.32 2.64 PG_Li 0.34
ioDH-LDM-03 3.08 73.56 70.48 PG_Li 0.68
ioDH-LDM-04 38.81 66.42 27.61 PG_Li 1.78
ioDH-LDM-05 91.86 93.33 1.47 PG_Fs 0.16
ioDH-LDM-05 94.45 126.30 31.85 PG_Li 1.31
ioDH-LDM-06 91.74 119.57 27.83 PG_Li 0.94
ioDH-LDM-07 84.32 106.38 22.06 PG_Li 1.02
ioDH-LDM-08 95.50 134.00 38.50 PG_Li 1.30
ioDH-LDM-09 153.65 170.00 16.35 PG_Li 0.56
ioDH-LDM-10 180.58 231.00 50.42 PG_Li 1.02
ioDH-LDM-11 16.62 18.38 1.76 PG_Ab_Q 0.04
ioDH-LDM-11 19.76 29.48 9.72 PG_Li 0.04
ioDH-LDM-11 42.28 51.51 9.23 PG_Li 1.02
ioDH-LDM-11 54.87 57.60 2.73 PG_Ab_Q 0.11
ioDH-LDM-14 149.71 172.54 22.83 PG_Li 1.16
ioDH-LDM-14 178.28 181.39 3.11 PG_Li 1.51
ioDH-LDM-15 78.06 89.65 11.59 PG_Li 0.84
ioDH-LDM-16 37.00 39.95 2.95 PG_Ab_Q 0.09
ioDH-LDM-16 42.00 46.76 4.76 PG_Ab_Q 0.09
ioDH-LDM-17 125.35 129.29 3.94 PG_Li 0.50
DH-XUX-67 213.80 215.37 1.57 PG_Li 1.22
DH-XUX-67 216.14 218.73 2.59 PG_Li 1.62
DH-XUX-67 220.14 232.60 12.46 PG_Li 1.87
DH-XUX-67 233.30 238.40 5.10 PG_Li 1.71
DH-XUX-67 239.83 240.92 1.09 PG_Li 3.90
DH-XUX-67 241.44 245.44 4.00 PG_Li 0.58
DH-XUX-68 134.00 143.56 9.56 PG_Li 1.60
DH-XUX-68 153.74 157.36 3.62 PG_Li 0.66
DH-XUX-68 174.77 175.53 0.76 PG_Li 0.52
DH-XUX-68 182.89 184.86 1.97 PG_Li 0.29
DH-XUX-68 185.50 186.00 0.50 PG_Fs 0.08
DH-XUX-68 192.59 196.70 4.11 PG_Li 1.78
DH-XUX-68 207.70 208.45 0.75 PG_Fs 0.14
DH-XUX-70 143.37 163.24 19.87 PG_Li 1.86
DH-XUX-71 112.90 118.55 5.65 PG_Li 0.65
DH-XUX-71 119.10 125.08 5.98 PG_Li 1.15
DH-XUX-71 131.05 140.85 9.80 PG_Li 0.75
DH-XUX-71 143.20 143.80 0.60 PG_Li 1.82
DH-XUX-71 152.50 155.50 3.00 PG_Ab_Q 0.22
(1) The intervals reported in this table represent drill
intercepts and insufficient data are available at this
time to state the true thickness of the mineralized
intervals.
Quality control
Quality assurance/quality control program involving blank samples (4 per cent of the sampling stream), standard samples (4 per cent of the sampling stream) and field duplicates (6 per cent of the sampling stream) has been established during sampling. A further 6 per cent of the mineralized samples will also be sent to the ALS Laboratory in Vancouver, Canada, for pulp duplicates, once the campaign is over. All assays are analyzed at SGS's Belo Horizonte, Brazil, laboratory using a multielement peroxide fusion ICP-AES on a half-core one-kilogram sample selected by geologist.
Investor conference call
Sigma announces that it will hold an investor call on Aug. 20, 2018, at 11:30 a.m. EST. The webinar link and dial-in instructions to participate in the call are as follows:
Webinar link: see ClickMeeting website
Dial-in
Participant code: 642381 (pound sign)
Sao Paulo: 55-11-3230-2305
New York: 1-917-338-1451
Toronto: 1-647-497-7729
Dial-in from other locations: see ClickMeeting website
About Sigma Lithium Resources Corp.
Sigma Lithium is developing in Minas Gerais, Brazil, a globally significant lithium hard-rock project. Sigma commissioned its phase 1 production plant and has commenced the production of battery-grade spodumene concentrate from its high-quality deposits. Sigma's corporate mission is to execute its strategy while embracing environmental, social and governance principles. The corporation is on track to become a high-quality lithium concentrate supplier to the battery industry worldwide.
Qualified person
The resources estimates in this news release are included in the technical report titled "Technical Report Northern and Southern Complexes Project, Aracuai and Itinga, Brazil, Sigma Lithium Resources Inc." which has an effective date of Jan. 29, 2018, and was prepared by Marc-Antoine Laporte, PGeo, MSc, of SGS. Mr. Laporte is a qualified person as defined by NI 43-101 and is independent of Sigma. The report is available at SEDAR. Mr. Laporte has also reviewed and approved the scientific and technical information in this news release.
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