Received by email:
File: NRG 06-05-17.pdf
AGREEMENT TO ACQUIRE THE HOMBRE MUERTO NORTH LITHIUM
PROJECT ADJACENT TO LITHIUM PRODUCTION
June 5, 2017 / Vancouver, BC - NRG Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ)
(OTCQB: NRGMF) (Frankfurt OGPN). The Company is pleased to announce that it has entered
into an option agreement to purchase the Hombre Muerto North Lithium Project, located in
Salta and Catamarca Provinces, Argentina. The property package of 3,287 hectares is comprised
of the Alba Sabrina, Tramo, Natalia Maria, Gaston Enrique, Viamonte and Norma Edit
concessions, all located in the Salar del Hombre Muerto in northwestern Argentina.
Highlights of the Hombre Muerto North Lithium Project Include:
20 surface samples collected in 2016-2017 range from 48 to 1,064 mg/L Li, averaging
587 mg/L Li , with seven samples over 800 mg/Li [see sample details in table below].
Magnesium to lithium ratios range from 1.1:1 to 10.2:1, averaging 4.6:1 , which are
low by industry standards.
Geophysical data indicates zones of low resistivity, interpreted to be potential lithium-
bearing zones that are open at depth.
Adjacent to Galaxy Resources' Sal de Vida lithium development project and FMC
Corp's long-time producing Fenix lithium brine operations.
The location of the project and the concessions is shown on the map below. The western part
of the Salar del Hombre Muerto is host to FMC's Fenix Mine (~20 km south of the Hombre
Muerto North property), which has been producing lithium for over twenty years, and Galaxy
Resources is developing its Sal de Vida lithium project in the eastern part of the salar.
Adrian Hobkirk, CEO of NRG Metals, commented: "We are very excited to be able to lock-up this
project in the preeminent lithium brine production and development area in Argentina. NRG
has a highly qualified, Argentina-based team of professionals experienced with lithium
exploration, development, through to lithium production."
RECENT SAMPLING AND CSAMT GEOPHYSICAL RESULTS
In October 2016 and January 2017 (January was a rainy season month), a total of 20 surface
geochemical samples were collected under the supervision of Nivaldo Rojas, who is an
independent Qualified Person (as defined in National Instrument 43-101). The samples range
from 48 to 1,064 mg/L Li and averaged 587 mg/L Li. The average Mg/ Li ratio is 4.63:1.
Hombre Muerto North Lithium Project Sample Results
Li Mg B K Density Conductivity
Sample Type Mg/Li
mg/L mg/L mg/L mg/L g/mL mS/cm
NS_001 Brine 864 2,515 311 5,866 1.18 229 2.91
NS_002 Brine 1,064 4,385 216 6,727 1.18 237 4.12
NS_003 Brine 322 1,537 212 2,451 1.13 188 4.77
NS_004 Brine 958 2,038 589 7,314 1.2 227 2.13
NS_005 Brine 1,021 1,549 646 7,758 1.21 240 1.52
NS_006 Brine 568 1,112 503 4,912 1.22 242 1.96
NS_007 Brine 543 3,432 381 3,758 1.19 225 6.32
NS_008 Brine 347 3,087 248 2,559 1.16 208 8.9
NS_009 Brine 415 861 432 3,391 1.22 230 2.07
NS_010 Brine 1,013 1,155 438 8,593 1.2 193 1.14
NS_015 Brine 48 490 14 427 1.03 40 10.21
NS_016 Brine 537 3,952 69 4,644 1.19 187 7.36
NS_017 Brine 298 2,008 97 1,486 1.17 184 6.74
NS_018 Brine 824 2,666 67 7,057 1.19 193 3.24
NS_019 Brine 544 1,856 67 4,276 1.16 176 3.41
NS_020 Brine 582 1,932 76 4,803 1.15 173 3.32
NS_022 Brine 440 2,098 55 3,142 1.12 150 4.77
NS_023 Brine 958 1,441 129 9,288 1.21 184 1.5
NS_024 Brine 223 1,794 50 2,106 1.1 123 8.04
NS_25 Brine 162 1,317 38 1,400 1.08 97 8.13
Sample results indicate that the near-surface brines contain high lithium and potassium values
with relatively low magnesium values. Surface samples were collected from pits excavated by
hand and then drilled to up to 2.4 meters below surface with a manual auger. All assays were
analyzed by Alex Stewart Assayers, an ISO certified laboratory located in Mendoza, Argentina.
In January 2017, a Controlled Source Audio Magnetotelluric Survey (CSAMT) was completed by
Geophysical and Exploration Consultants S.A. of Mendoza, Argentina. CSAMT is a geophysical
investigative method for obtaining information about subsurface resistivity. Low resistivity
results are interpreted to represent potential lithium brine zones. Two CSAMT lines were run
covering the Alba Sabrina, Natalia Maria and Tramo concessions. The E-W line that extends
from the Alba Sabrina concession through Natalia Maria and the Tramo concessions is
approximately 9,600 meters long. The results for this line show a long, low resistivity anomaly
from Natalia Maria to the eastern border of the Tramo concession. There is a 60-70 meter thick
upper horizon with low resistivity values that range from 0.2 to 1.3 ohm/meter. The low
resistivity zone extends to a depth of at least 250 meters in the Tramo concession, and the
anomaly is open at depth. The NE-SW line located on the Alba Sabrina concession is
approximately 7,800 meters long. The results for this line indicate the presence of a near-
surface, low resistivity layer up to a depth of 60 meters with resistivity values of 0.01 to 10
ohm/meter. Towards the southwest, the low resistivity layer appears to increase to a thickness
of 150 to 250 meters.
SALAR DEL HOMBRE MUERTO -- AREA INFORMATION
The Salar del Hombre Muerto has been extensively evaluated by both FMC and Galaxy
Resources. Galaxy Resources acquired the Sal de Vida project when it merged with Lithium One.
In a 43-101 Technical Report dated March 7, 2012, Lithium One provided a detailed log of
diamond drill hole SVH11-21 with assay values that ranged from a low of 564 mg/L Li to a high
of 895 mg/L Li over the 95 m length of the hole. That hole is located 750 m south of the Tramo
concession. In a press release dated April 10, 2017, Galaxy Resources announced the initiation
of production-well drilling at Sal de Vida, approximately two km south of the Tramo concession.
Given robust exploration, development and mining activity in the area, access to key
infrastructure is excellent. Provincial Route 17 passes within 10 km of the project, a 600
megawatt power line between Salta and Mejillones, Chile is 160 km to the north, and a natural
gas pipeline connecting mining operations in the Puna region is within 10 km. A railroad line
between Salta and the Chilean sea port of Antofagasta that is being reactivated is 100 km north
of the Hombre Muerto North property. Company technical management are currently
reviewing all available data, and will be providing further details in the immediate future.
TERMS OF THE OPTION TO PURCHASE AGREEMENT
The project is being acquired through a purchase option agreement from a private borate
producer from Salta, Argentina named Jorge Moreno. Mr. Moreno is a well-known
businessman in the region, with interests in mining and agriculture. He has been involved in
the production and exportation of borates for more than 20 years, and he is also involved in the
provision of logistical and mining services for remote projects. In 2016, he was one of the
vendors of the Pastos Grandes Project to Millennial Lithium.
Terms of the acquisition are US $5.65 million in cash payments and 10 million NRG Metals Inc.
common shares staged over a 54- month period. The payment schedule is as follows:
1. US $50,000 on signing for a 90-day due diligence period and for the completion of a NI
43-101 Technical Report on the project. The due diligence period may be extended to
120 days, if necessary.
2. Upon acceptance of the NI 43-101 report by the TSX, NRG will pay Mr. Moreno US
$100,000 and issue one million common shares of NRG common stock. At that time,
Mr. Moreno will join the board of NRG Metals Inc.'s Argentine subsidiary.
3. At six months from Item 2, US $250,000 and one million common shares of NRG.
4. At 12 months from Item 2, US $250,000 and one million common shares of NRG.
5. At 18 months from Item 2, US $1,000,000 and one million common shares of NRG.
6. At 30 months from Item 2, US $1,000,000 and two million common shares of NRG.
7. At 42 months from Item 2, US $1,000,000 and two million common shares of NRG.
8. At 54 months from Item 2, US $2,000,000 and two million common shares of NRG.
9. The project will be subject to a 3% Net Production Royalty, of which 50% may be
purchased for US$3,000,000 within 36 months of Item 2.
NRG Metals Inc. is an exploration stage company focused on the advancement of lithium
projects in Argentina. Company management are highly qualified in the exploration and
development to production, of lithium brine projects. In addition to the Hombre Muerto
North Lithium Project, the Company is evaluating the 29,000 hectare Carachi Pampa Lithium
Project in the province of Catamarca, which is in the final stage of drill permitting.
NRG Metals Inc. currently has 66,330,885 shares issued and outstanding, and trades on the
TSX Venture Exchange under symbol NGZ, on the OTC QB Market under symbol NRGMF, and
on the Frankfurt Stock Exchange under symbol OGPN.
On Behalf of the Board of Directors of NRG Metals Inc.
Adrian F. C. Hobkirk President and Chief Executive Officer / ahobkirk@nrgmetalsinc.com
TECHNICAL DISCLOSURE
The technical and scientific disclosure contained in this press release is approved by Nivaldo Rojas, B.Sc.
Mining Engineering ( Universidad de Atacama, Copiapo, Chile )of Rojas & Associados, Mining Consultants
of Mendoza, Argentina. Mr.Rojas is a Qualified Person as defined under National Instrument 43-101,
and is a Fellow of the Australasian Institute of Mining and Metallurgy. He is independent of NRG Metals
Inc. and the vendor, Jorge Moreno, within the meaning of Canadian National Instrument 43-101. Mr.
Rojas visited the site October 3-5, 2016 when he was contracted by Mr. Moreno to supervise collection
of surface geochemical samples. Mr. Rojas supervised the preparation of this press release and approves
the scientific and technical disclosure contained herein.
The TSX Venture Exchange has not reviewed the content of this news release and therefore does
not accept responsibility or liability for the adequacy or accuracy of the contents of this news
release.
This news release contains certain "forward- looking statements" within the meaning of Section 21E of the United State
--->s
Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, cer
--->tain
information contained herein constitutes forward- looking statements. Forward-looking statements are based upon
opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors which could cause actual results to differ materially from those projected in the forw
--->ard
looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction
described in this news release is subject to a variety of conditions and risks which include but are not limited to: r
--->egulatory
approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk,
--->security
risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that
--->this
transaction will complete as described in this news release. We seek safe harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.