22:36:58 EST Tue 27 Feb 2024
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Argentina Lithium & Energy Corp (2)
Symbol LIT
Shares Issued 90,790,129
Close 2022-09-30 C$ 0.27
Market Cap C$ 24,513,335
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Argentina Lithium drills 2nd Rincon hole, identifies Li

2022-10-03 12:15 ET - News Release

Mr. Nikolaos Cacos reports


Argentina Lithium & Energy Corp. has released positive lithium brine values from the second diamond drill hole at its Rincon West project in Salta province, Argentina. The Rincon West project covers 2,951.5 hectares of the salar basin, located west of the adjacent Rincon Project owned by Rio Tinto. The property is currently permitted for up to nine exploration drill holes. The fourth exploration hole is currently in final steps to completion. The brine analytical results from the second hole have been received and are reported below.

"The results of the second exploration hole demonstrate remarkably consistent lithium grades, when compared to the first. RW-DDH-002 results reveal an impressive concentrated brine aquifer, tested with packer sampling over approximately 77 per cent of the interval between 182- and 305-metre depths, with lithium values ranging from 337 to 367 milligrams/litre. Additional concentrated brines with lower lithium contents were also recovered from above this 118-metre interval. Drilling thus far validates that the adjacent lithium salar extends under our properties, with consistently high lithium grades. The drill program will continue as planned with the aim of delineating an initial lithium mineral resource," stated Miles Rideout, vice-president (VP) of exploration.

The results of the brine analyses and the respective intervals from which brine was recovered are shown in the "Interval data and results of brines analyses for lithium, potassium, and magnesium for drill hole RW-DDH-002" table.

Exploration drilling is continuing.

Technical details

Hole RW-DDH-002 was executed with diamond drilling (HQ-size), permitting the extraction of core samples of the salar basin formations and recovery of brine samples, where possible. Drilling was conducted between July 7 and July 22, stopping at 323 metres of depth in igneous basement rock units. Final sampling and lining the hole with two-inch diameter PVC filters and casing were completed by July 25, 2022. Drilling was carried out by Salta-based AGV Falcon Drilling SRL, under the supervision of Argentina Lithium's geologists.

Brine sampling was conducted using a single packer sampling unit during drilling. Upon completion of the drilling, selected intervals of the hole were resampled with a double packer system, permitting isolation of certain intervals. The packer sampling method allows the collection of brine samples at specific depths while sealing the hole at the top and bottom of the interval.

As anticipated by the exploration team, fresh water layers were found to overly the much denser concentrated brine aquifer. Recovered brine samples indicate relatively fresh water in the interval from 61.3 to 65.2 metres of depth, transitioning to brackish in the interval from 67.3 to 71.2 m of depth. Brine concentration increased below this level, as reported in the "Interval data and results of brines analyses for lithium, potassium, and magnesium for drill hole RW-DDH-002" table. A number of additional packer sampling attempts from intervals outside of those reported in Table 1 did not return a sufficient quantity of brine considered representative for analysis.

No casing was required during drilling. Poorly consolidated gravels were logged from the surface to 23 m depth, where sandy sediments began. Black and dark sands were logged to 66 m of depth, at which point sulphates appear, likely indicating the presence of the salar formation. Sandy units with bands of sulphates and gravels were logged from 66 m to 90 m of depth, entering a silt layer logged between 90 m and 92 m. Dark sands with abundant layers of clays and occasional gravels were logged from 92-metre to 154.25-metre depths. Dark sands with abundant interbedding of sulphates continued from 154.25 m to 199 m of depth. Sands with intercalated gravels were logged between 199 m and 236 m, followed by gravels logged to 245 m of depth. At 245 m, the drill entered aplite (fine-grained igneous rock), displaying varying degrees of fracturing. Sulphates were observed from 66 m of depth through the sediment units and within some fractures in the aplite. Metamorphosed quartzite was encountered from 293 m, the upper 10 m with significant fracturing. The hole was stopped in metamorphosed quartzite at 323 m depth. All core samples recovered in drilling are retained for logging and are available for subsequent laboratory evaluation of factors such as total and effective porosity, permeability and other measurable characteristics of the aquifer formation.

Analyses and QA/QC (quality assurance/quality control)

Samples of brine were submitted for analysis to Alex Stewart International Argentina SA, the local subsidiary of Alex Stewart International, an ISO 9001:2008 certified laboratory, with ISO 17025:2005 certification for the analysis of lithium, potassium and other elements. Alex Stewart employed inductively coupled plasma optical emission spectrometry (ICP-OES) as the analytical technique for the primary constituents of interest, including boron, calcium, potassium, lithium and magnesium. Measurements in the field included pH (potential of hydrogen), electrical conductivity, temperature and density. The quality of sample analytical results was controlled and assessed with a protocol of blank, duplicate and reference standard samples included within the sample sequence. In addition, 11 samples, including one blank and two standards, were submitted for reanalysis at Alex Stewart. The blank (2), duplicate (1) and re-submitted samples (8) analyzed at Alex Stewart all reported in the acceptable range. A low-grade and medium-grade reference standard were included in the initial and second submission to Alex Stewart. The low-grade reference standard analyses were within the acceptable range of two standard deviations (SD) and with less than 2-per-cent relative per cent difference (RPD); the medium-grade standard returned results less than three SD, but with a low RPD (1.75 per cent and minus 3.25 per cent).

As well, two duplicate check samples were submitted to SGS Argentina and also analyzed by ICP-OES. Initial results were significantly higher than expected and the samples were rerun in addition to a low-grade standard sample. The lithium grades from the reanalysis of the check samples correlated well with the grades reported by Alex Stewart; the standard sample, however, returned a grade 15 per cent below the acceptable lithium value for the standard. Further investigation to determine the cause of this standard failure is continuing.

Rincon West project

The Rincon West project comprises the following properties: Villanoveno II and Demasia Villanoveno II, totalling 2,491 hectares, are held under an option whereby the company can earn a 100-per-cent interest, as described in the company's Sept. 28, 2021, news release. Argentina Lithium has also purchased the 460.5-hectare Riconcita II property, adjacent to Villanoveno II, (see the Aug. 25, 2022, news release).

Corporate update: New stock option plan and equity incentive plan

On Aug. 12, 2022, the company adopted a 10-per-cent rolling stock option plan and a restricted share unit, performance share unit and deferred share unit plan. The number of common shares of the company reserved for issuance under the stock option plan cannot exceed 10 per cent of the number of common shares of the company that are outstanding on each applicable grant date; 7,416,012 common shares of the company are reserved for issuance under the equity incentive plan.

Qualified person

David Terry, PhD, PGeo, is the company's qualified person, as defined in National Instrument 43-101. Dr. Terry is responsible for oversight of the company's early stage exploration at the Rincon West property. The disclosure in this news release has been reviewed and approved by Dr. Terry.

About Argentina Lithium & Energy Corp.

Argentina Lithium & Energy is focused on acquiring high-quality lithium projects in Argentina and advancing them toward production in order to meet the growing global demand from the battery sector. The management group has a long history of success in the resource sector of Argentina and has assembled a first-rate team of experts to acquire and advance the best lithium properties in the Lithium Triangle. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

We seek Safe Harbor.

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