Mr. Farhad Abasov reports
MILLENNIAL REPORTS POSITIVE PUMPING TEST RESULTS FROM THIRD PRODUCTION SCALE WELL AT PASTOS GRANDES PROJECT, ARGENTINA; INVESTOR RELATIONS AND COMMUNICATIONS / BRANDING AGREEMENTS
Millennial Lithium Corp. has provided encouraging results from a short-term pumping test of a third production-scale well at its Pastos Grandes project in Salta, Argentina. Pumping well PGPW18-17 was installed as a future production well, and meanwhile to undertake short-term pumping of lithium brine to determine aquifer parameters and chemical variation during a 72-hour period in March, 2019. At a pumping rate of 19.4 litres/second (L/s), the drawdown was approximately 30 metres (m), with rapid water level recovery. Estimated transmissivity was calculated from the water level recovery data to be about 100 square metres per day. The pumping test was completed under the direction and supervision of Montgomery & Associates.
Millennial's president and chief executive officer, Farhad Abasov, commented: "Millennial is very pleased with the results of our third pumping test in the central portion of the company's land position at Pastos Grandes. The pumping rate was 19.4 L/s over a 72-hour time frame from March 5 to March 7 with a maximum drawdown of approximately 30 m with full recovery to initial level after three days of recovery. The transmissivity, calculated at about 100 square m/day, is encouraging and indicates the aquifer has good potential to sustain long-term pumping. With a strong cash position Millennial is on track to produce an updated 43-101 resource report early in Q2 and complete the bankable feasibility study later in the quarter."
Well PGPW18-17 was drilled using mud rotary methods to a total depth of 608 m using 17.5-inch and 14.75-inch diameter drill bits. The well was completed with 12-inch and eight-inch diameter steel pipe with 12-inch blank pipe for the section from zero m to 50.4 m, 12-inch slotted pipe for the section from 50.4 m to 199.8 m, eight-inch slotted casing from 199.8 m to 594.4 m and eight-inch blank casing from 594.4 m to 601.4 m with an end cap. The annular space between the borehole and the casing was filled with gravel pack.
Following a step test to determine the optimal pumping rate a 72-hour constant flow pumping test was completed with a flow rate of 19.4 L/s, the maximum rate for the equipment used for the test. Water level drawdown and recovery were measured for successive 72-hour periods (see attached table). Maximum drawdown was approximately 30 m; the recovery to initial water level was observed in the 72 hours after pumping stopped.
SUMMARY OF PUMPING TEST AT WELL PGPW18-17
Total Pumping Initial water level (metres
Well ID well depth (m) duration (hours) below measuring point) Maximum drawdown (m) Pumping rate (L/s)
PGPW18-17 608 72 5.22 30.0 19.4
The drawdown and recovery data provide the basis for the calculation of the aquifer transmissivity, a measurement of the rate brine moves through the aquifer. The best estimate of the transmissivity is about 100 (square m/d) and is considered to be very good for fine-grained aquifers. Based on this transmissivity calculation, the aquifer has good potential to sustain a long-term pumping rate of greater than the 19.4 L/s maximum test rate.
Brine sampling during the pumping test was completed every 12 hours to determine the variation in brine chemical composition over the period the aquifer was tested. Laboratory chemical analyses for the brine samples are pending.
Millennial continues to evaluate and define the characteristics of the lithium-bearing aquifer in the southern portion of its land package with pumping well PGPW18-15 nearing completion with short-term pumping tests and brine sampling to follow.
Sampling was conducted in accordance with CIM guidelines for brine resource evaluation, with an appropriate chain of custody and QA/QC program in place for ensuring veracity, accuracy and precision of the analytical results.
The primary analytical laboratory to be used for the data in this program is the newly commissioned SGS Laboratory in Salta, Argentina. SGS is accredited to ISO 9001:2008 and ISO14001:2004 for its geochemical and environmental labs for the preparation and analysis of numerous sample types, including brines.
Investor relations and communications/branding agreements
The company wishes to announce the terms and conditions under which three groups provide investor relations, communications, branding and/or similar services to the company.
The company has engaged NetworkNewsWire (NNW) to provide corporate communications expertise, subject to the approval of the TSX Venture Exchange. NNW is an experienced financial news and publishing company that provides services to companies in the United States and Canada pursuant to contracts between NNW and the companies. NNW will provide corporate communications, company news release dissemination, enhancement, and social media solutions and related advice on a month-to-month basis for $25,000 (U.S.) per month. The company will pay NNW directly from the company's current working capital. Millennial Lithium and NNW are at arm's length and, to the company's knowledge, neither NNW nor any of its affiliates have an interest in securities of the company. NNW has received no shares or warrants from Millennial Lithium or any third party for the services that NNW provides to the company. NNW is a private company based in the United States, and Michael McCarthy is NNW's managing director.
SRC Swiss Resource Capital AG
The company has entered into an agreement effective until Nov. 1, 2019 (after which time it is renewable on a quarterly basis), with SRC Swiss Resource Capital AG for investor relations communications services in Europe in German speaking countries. The company will, subject to the SRC agreement's approval by the TSX Venture Exchange, work with SRC to deliver services which include disseminating company information to existing and potential shareholders in the form of the company's news releases, creating interviews and videos through social media and on-line means as well as representing the company at trade and investment shows. The fee under the SRC agreement is 6,000 Swiss francs per month with additional fees for special services such as trade and investment shows (such as approximately 3,500 Swiss francs plus expenses per trade and investment show). The services, in particular in relation to trade and investment shows, are to be provided in various places. SRC is a private company and is based in CH-9100 Herisau, Poststrasse 1 in Switzerland. SRC is led by Joachem Staiger, chief executive officer. SRC has extensive experience in providing services to companies listed on various stock exchanges that are seeking to raise their profile in public markets. SRC owns 15,000 Millennial Lithium shares and has no intention to sell them but holds them for investment purposes.
Proactive Investors Ltd.
The company has entered into an agreement with Proactive Investors dated effective Sept. 1, 2018, to provide services including: (i) continuing editorial coverage of company news releases, analyst commentary and interview based articles; (ii) building and maintaining a profile page on Proactive websites; and (iii) conducting executive interviews in audio and video format to be featured on Proactive websites. The Proactive agreement is for a period ending on Nov. 30, 2019. Proactive has received a fee of $15,000. Funds for payment of Proactive came from existing working capital. Proactive is a multimedia organization which operates a number of financial websites in multiple languages and has offices in London, New York, Toronto, Vancouver and Sydney. Proactive is a private company with employees experienced in delivering various communications and other services and Proactive's Vancouver office will, subject to the TSX Venture Exchange's approval of the Proactive agreement, work with the company to deliver services under the direction of Sam Kiri, director of Proactive.
The technical disclosure in this news release has been reviewed by Iain Scarr, AIPG CPG, chief operating officer of the company and a qualified person as that term is defined in National Instrument 43-101.
We seek Safe Harbor.
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