VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 5, 2016) – Advantage Lithium Corp. (the “Company” or “Advantage Lithium“) (TSX VENTURE:AAL) and its joint venture partner, Nevada Sunrise Gold Corp. (“Nevada Sunrise”), are pleased to announce that lithium-bearing brines have been intersected in the second borehole of the 2016 drilling program at the Clayton NE lithium brine project in the Clayton Valley, Nevada (“Clayton NE”, or the “Project”). This follows successful results from the first borehole (see NR dated Nov 1st, 2016). Clayton NE borders the Silver Peak mine, operated by Albemarle Corporation (“Albemarle”), North America’s only producing lithium mine. Of particular note, hole CNE-16-02, has intersected multiple aquifer formations, including a 188.9m brine-producing strata averaging 164.2 parts per million (“ppm”) lithium from a depth of 207.3m to 396.2 metres, including a higher grade interval averaging 202.8 ppm lithium over 109.7m. Hole CNE-16-03, which is still in progress, has also encountered strong brines ranging up to 138,000 ppm total dissolved solids (“TDS”), with assays to follow. In addition, the JV has staked additional land available within and to the edge of the salar to the south-west at Clayton NE, bringing the total land package to 437 ha.
Highlights
- All three holes intersect mineralized brine: 1st and 2nd holes have encountered lithium-rich brines and 3rd hole (still in progress) has hit mineralization with assays to follow.
- 3.43km mineralized brine trend: Holes CNE-16-01 and CNE-16-02, both with significant intervals of mineralized lithium brines, are located 3.43km apart.
- Intervals up to 202.8 ppm lithium over 109.7m: Lithium brines intercepted by 2nd drill hole at Clayton NE, CNE-16-02, have returned intervals up to 202.8 ppm lithium over 109.7m (286.5m to 396.2m), including peak values up to 227 ppm lithium over a 6.1m section (304.8m to 310.9m). These values are comparable to Albemarle’s brine samples from their Silver Peak operation, immediately adjacent to Clayton NE and are in line with results from the first hole at Clayton NE.
- More results to come. Hole CNE-16-03, which has encountered 138,000 ppm TDS, is still in progress. Assays from holes CNE-16-01 and CNE-16-02 have shown that a relationship of TDS to lithium grade indicates a correlation between higher lithium values and higher strength brine.
- Strong brine flows. Brine flows of up to 120 gallons per minute issued from borehole CNE-16-02 between 1,000 and 1,300 feet (304.8 to 396.2 meters). Analysis shows this zone carries significant lithium concentrations. High brine flows are important for economic production.
- Clayton NE land package increased. The JV has staked additional land, increasing the overall land package to 437 ha.
Ross McElroy, Technical Adviser and Director, of Advantage Lithium, commented: “We now have mineralization in all three holes over a mineralized strike trend traced to 3.43km at Clayton NE, with strong lithium grades and TDS results over wide intervals. These latest results include over 600 feet of brine producing strata and show even stronger flow rates than our first hole. This suggests we may have hit a key area of known aquifers at Clayton NE and we are delighted by the continued success of the drill program.”
Drill Hole Technical Details
CNE16-01
CNE16-01 was completed to a depth of 512.1m (1680ft), intersecting the base of the Clayton Valley salar sedimentary basin at 506m. Drilling intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay. A total of 27 grab groundwater samples were collected as brine formations were encountered. Table 1 presents a compiled summary of the depths of the Aquifer Systems with brine interval thickness and associated average lithium grades and Total Dissolved Solids concentration. Anomalous lithium results were obtained from brine formations intermittently intersected over a 331.3m section (from 168.6m to 499.9m) within the Main Ash, Lower Aquifer System, and Lower Gravel Aquifer systems. The highest grade results were obtained in the Lower Aquifer System with peaks up to 218 ppm lithium (224.0m to 227.1m) while the widest intervals were reported in the deeper Lower Gravel Aquifer System, including a 103.7m wide interval (from 396.2m to 499.9m) averaging 134.8 ppm lithium. In addition, drill cuttings were collected for each 1.5m interval and have been submitted for analysis. Analytical results for the drill cuttings are pending.
Table 1: Results of Brine Samples for CNE16-01
| Aquifer System |
Interval | Total Dissolved Solids (“TDS”) ppm |
Lithium Range (ppm) |
Lithium Average Grade(ppm) |
||||||||||
| Drill Hole | From (m) | To (m) | Width (m) | |||||||||||
| CNE-16-01 | Main Ash | 168.6 | 170.1 | 1.5 | 68,000 | 94.3 | 94.3 | |||||||
| Lower Aquifer System A | 224.0 | 243.8 | 19.8 | 110,000 | 195 to 218 | 209.7 | ||||||||
| Lower Aquifer System B | 326.1 | 365.8 | 39.7 | 130,000 to 140,000 | 174 to 189 | 181.5 | ||||||||
| Lower Gravel Aquifer | 396.2 | 499.9 | 103.7 | 35,000 to 190,000 | 72.4 to 234 | 134.8 | ||||||||
| including | 457.2 | 481.6 | 24.4 | 58,000 to 190,000 | 72.4 to 234 | 187.5 | ||||||||
CNE16-02
CNE-16-02 was collared approximately 3.43km northeast of CNE-16-01. The hole was terminated within a Massive Clay formation within the Clayton Valley salar sedimentary basin at a depth of 426.7m (1,400 ft). As was observed in hole CNE16-01, drilling intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay. A total of 32 grab groundwater samples were collected as brine formations were encountered. Table 2 presents a compiled summary of the depths of the Aquifer Systems with brine interval thickness and associated average lithium grades and Total Dissolved Solids concentration. Anomalous lithium results were obtained from a 188.9m wide brine formation intersected from 207.2m to 396.2m within the Lower Aquifer System. This 188.9m interval averaged 164.2 ppm lithium, including a higher grade interval averaging 202.8 ppm lithium over 109.7m (286.5m to 396.2m) and was associated with strong brine flows of up to 120 gallons per minute issued from 304.8m to 396.2m. In addition, drill cuttings were collected for each 6.1m interval and have been submitted for analysis. Analytical results for the drill cuttings are pending.
Table 2: Results of Brine Samples for CNE16-022
| Drill Hole | Aquifer System | Interval | Total Dissolved Solids (“TDS”) ppm |
Lithium Range (ppm) |
Lithium Average Grade(ppm) |
|||||||||
| From (m) | To (m) | Width (m) | ||||||||||||
| CNE-16-02 | Main Ash | 190.5 | 199.6 | 9.1 | No Water | |||||||||
| Lower Aquifer System | 207.3 | 396.2 | 188.9 | 50,000 to 380,000 | 72.4 to 228 | 164.2 | ||||||||
| Including | 286.5 | 396.2 | 109.7 | 140,000 to 380,000 | 151 to 227 | 2202.8 | ||||||||
CNE-16-03
Hole CNE-16-03, collared approximately 670.6m northeast from hole CNE-16-01, is currently in progress at a depth of approximately 274.3 m. This hole has also encountered strong brines ranging up to 138,000 ppm total dissolved solids, as measured by a field instrument.
Regarding Sample Analysis
Groundwater samples were sent to Western Environmental Testing Laboratory in Reno, Nevada for analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a handheld YSI Model 556 Multiparameter Meter, which meets Good Laboratory Practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. All depth measurements reported, including sample and interval widths are down-hole. As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.
About the Program
The 2016 exploration drilling program includes three vertical oriented conventional dual-tube reverse circulation (“RC”) drill holes totaling approximately 1,500m (approximately 4,920 feet), focussed on lithium brine targets close to the Silver Peak mine border and several of Albemarle’s production wells. Assays from Clayton NE drill holes have shown a relationship of TDS to lithium grade indicates a correlation between higher lithium values and higher strength brine. The lithium results from the first two boreholes of the 2016 drilling program are generally comparable to Albemarle’s brine samples from Silver Peak mine production wells as reported to the State of Nevada for the period 2011-2015, which range from 98 ppm to 340 ppm lithium.
The technical information in this news release has reviewed and approved on behalf of the company by Ross McElroy, P.Geol., Technical Advisor and Director for Advantage Lithium Corp., and a “Qualified Person” as defined in NI 43-101.
About Clayton NE
- Consists of 55 unpatented claims totaling approximately 1,080 acres (437 hectares);
- Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
- Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.
Water Rights Update
On November 30, 2016, Nevada Sunrise and the Company learned that the State Engineer’s office of the Nevada Division of Water Resources (“NDWR”) has issued a ruling of forfeiture against the Company’s water right in the Clayton Valley of Nevada (the “Ruling”) citing lack of beneficial use for a period of five years. Nevada Sunrise has recently received evidence of water use that the NDWR requires, which will be presented during the appeal process. Nevada Sunrise has advised the Company that the appeal will be filed before December 29, 2016.
Further information about the company can be found at www.advantagelithium.com.
About Advantage Lithium Corp.
Advantage Lithium Corp. is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. Common Shares are listed on the TSX Venture Exchange under the symbol “AAL”. The company has signed an LOI with lithium producer, Orocobre, to acquire 100% interest in five projects in Argentina and up to 75% in a sixth, called Cauchari. Cauchari is host to a near-surface resource, has a large exploration target and is just 20km from Orocobre’s Olaroz lithium production facility. The company is also earning an interest from Nevada Sunrise Gold Corp., in a portfolio of five lithium brine projects in the Clayton and Lida Valley regions of Nevada, USA, together with certificated water rights in the Clayton Valley. Additionally, the company has entered into an LOI agreement to earn interest from Radius Gold Inc. in four lithium brine projects in the states of Chihuahua and Coahuila, Northwest Mexico. In addition, the company has acquired 100% of the Stella Marys lithium brine project, immediately adjacent to Orocobre’s Salinas Grandes project that hosts an inferred, near-surface resource, in Argentina’s Lithium Triangle.
ON BEHALF OF THE BOARD
David Sidoo, CEO, President, Director
Cautionary Statement:
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage Lithium which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company and Advantage Lithium disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
David Sidoo
CEO, President, Director
604.343.3760
604.683.1585 (FAX)
[email protected]
