LSC Lithium Announces Pozuelos Updated Mineral Resource Measured and Indicated 1,678,000 Tonnes LCE at 505mg/l Li and Inferred 631,000 Tonnes LCE at 518mg/l Li

HIGHLIGHTS

• Measured and Indicated Resource of 1,678,000 tonnes of LCE, an increase of 29%, with lithium grade of 505mg/l Li
• Inferred Resource of 631,000 tonnes of LCE, an increase of 27%, with lithium grade of 518mg/l Li
• Significant zones of higher grade lithium-bearing brines identified in two major depocentres
• Combined Pozuelos-Pastos Grandes (“PPG”) Project Resource of 2,617,000 tonnes LCE in Measured and Indicated category and 938,500 tonnes LCE in the Inferred category^1,2,3
• Combined Resource to be used in PEA for the PPG Project based on target production rate of 20,000tpa lithium carbonate to be released by the end of November

TORONTO, Nov. 27, 2018 (GLOBE NEWSWIRE) — LSC Lithium Corporation (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce an updated resource estimate (“Resource Estimate”) for its Pozuelos Project in Salta Province, Argentina. The updated NI 43-101 Mineral Resource Estimate has increased the Measured and Indicated Resource to 1,678,000 tonnes of lithium carbonate (Li₂CO₃) equivalent (“LCE”) and the Inferred Resource to 631,000 tonnes of LCE. This is an increase of 29% in the Measured and Indicated Resource category and 27% in the Inferred Resource category compared to the previous Resource Estimate dated February 28, 2018².  The average grades from the salar have also increased by 30% in the Measured and Indicated category from 387mg/l to 505mg/l and by 52% in the Inferred category from 340mg/l to 518mg/l.

Ian Stalker, President and CEO of the Company, noted, “We are extremely pleased with the updated Mineral Resource Estimate on the Pozuelos Project. This is a huge milestone for LSC and is a great announcement ahead of our anticipated PEA. The updated Resource Estimate emphasises the potential of the jointly developed Pozuelos-Pastos Grandes Project with the impressive size of the Resource. The PPG Project now has a combined Resource of 2,617,000 tonnes LCE in the Measured and Indicated category and 938,500 tonnes LCE³ in the Inferred category which will be used in the anticipated PEA based on a target production rate of 20,000tpa lithium carbonate. Our targeted 20,000tpa of lithium carbonate production in 2021 may indeed be only the beginning for this impressive inventory when we combine both salars.”

Hains Engineering Company Limited and Hains Technology Associates located in Toronto, Ontario, Canada were engaged to prepare the pdated Mineral Resource Estimate for LSC’s Pozuelos Project and also to prepare the Technical Report in accordance with National Instrument 43-101 – Standards and Disclosures for Mineral Projects.

The previously announced Resource Estimate for Pozuelos included 1,296,000 tonnes of LCE in the Measured and Indicated Mineral Resource category with average grade of 387mg/l Li and 497,000 tonnes in the Inferred Mineral Resource category with average grade of 340mg/l Li². 

Updated Pozuelos Resource

The updated Mineral Resource Estimate for Pozuelos is detailed in Table 1.

Table 1: Resource Estimate Summary, Salar de Pozuelos
November 22, 2018

Notes: 

1. Brine volumes are before application of Relative Brine Release Capacity (“RBRC”) factor.
2. RBRC value is the weighted average for the Resource classification category.
3. Resources have been classified in accordance with CIM Mineral Resource definitions, May 25, 2014. Assay values have been rounded to nearest whole number.
4. Resources have been estimated by Louis Fourie, P. Geo., Pr.Nat. Sci., under the direction of D. Hains, P. Geo.
5. The effective date of this Mineral Resource Estimate is November 22, 2018.
6. Resources have been estimated using a cut-off grade of 330mg/l lithium.
7. Mineral Resources which are not Mineral Reserves do not have demonstrated economic value. There is no assurance that additional exploration will result in the conversion of Mineral Resources to Mineral Reserves.
8. Inferred Mineral Resources are considered as too speculative to have economic criteria applied to them.  There is no assurance that additional exploration will result in the conversion of Inferred Mineral Resources to Indicated or Measured Mineral Resources.
9. A conversion factor of 5.323 has been used to convert Li metal to Lithium Carbonate Equivalent (LCE). Totals for M&I and Inferred Resources have been rounded.

The Resource Estimate is sensitive to the cut-off grade used. See: Figure 1: Grade-Tonnage Curve by Resource Classification, Salar de Pozuelos Resource Estimate November 22, 2018.

Mineral Resource Estimation Methodology

Resources were estimated using a polygonal method. Polygons were defined by the 2017 exploration drill program² and boundaries were not adjusted for the current Resource Estimate.  Polygons were created in ArcGIS by centering the polygon on each drill hole and clipping to the salar perimeter or the adjoining polygon. The base of each polygon was cut at the limit of the drill hole data for the respective polygon or the interpreted base of productive lithology based on the available seismic data. Polygon volumes were calculated in ArcGIS. The volume in each polygon was further calculated based on the thickness of the respective lithological units within each polygon.

Lithologies were determined based on analysis of drill logs and drill core photos and extended across each polygon. Five major lithologies were defined:

RBRC data, a proxy for Sy (Specific yield), was determined from core samples for each lithology. The Sy value for the FHL lithology was determined from pumping tests for two 15m deep wells located within polygons representing holes SP-2017-02 and SP-DDH400 and two trenches. Pump test data was analyzed using Infinite Extent software and the Neuman type curves to derive an average value of 31.25% for the upper 15m in the salar.

Brine Resources were calculated for each polygon by multiplying the volume of each lithological unit in the respective polygon by the average RBRC value for the respective lithological unit in the polygon. Estimated grades by polygon and lithological unit were calculated by applying the drill hole assay or pumping assay data for the respective polygon and lithological unit to the calculated brine volumes. In those cases where both specific packer sample assay data and pumping sample assay data were available for adjacent holes, the data was averaged for the samples within the screen interval of the pump. Contained lithium metal in each polygon and lithological unit was converted to LCE using a conversion factor of 5.323.

Resources were classified as Measured, Indicated or Inferred based on the number of sample points within the respective polygons and lithological units. In general, Resources within the upper 15m of the salar were classified as Measured, and those Resources between 15m and 50m classified as Indicated. Resources found below approximately 50m depth were classified as either Indicated or Inferred, based on the density of sample data. Resources in polygons where only surface sample data was available were classified as Inferred. Surface sample assay values were applied to a depth of 50m, and in the case of Polygons 3 and 4 in the northeast of the salar, assigned assay values from Polygon 1 for the interval below 50m and assigned a Sy value of 2.57 for the full interval and classified as Inferred. Those Resources within polygonal lithological units lying below the lower limit of the assay data but containing RBRC data were also classified as Inferred. Where RBRC data was available but no assay data was available for the respective interval and lithology, assay data was assigned based on the average for similar lithology and interval from adjacent holes. In such cases, the estimated Resources were classified as either Indicated or Inferred, based on the number of sample points. Resources for Polygon 1 in the northeast of the salar were classified as Indicated regardless of level in the salar.
Estimated Resources were summed by classification and polygon to derive totals and average grades.

The Resource Estimate is based on the results of previous exploration as detailed in prior NI 43-101 Technical Reports filed by LSC on SEDAR² and the 2018 exploration program. The 2018 exploration program included a program of deep exploration drilling, development of pumping wells with step tests and continuous tests to develop data on the hydraulic properties of the salar, hydrogeological studies of the salar, including geophysics and construction of perimeter monitoring wells, additional seismic studies to enhance understanding of the lithology of the salar, and extensive brine sampling and RBRC core analysis. Table 2 summarizes the 2018 drill program undertaken at Salar de Pozuelos.

The 2018 exploration program identified significant zones of higher grade lithium bearing brines. The available data indicate a central, high grade zone extending in a northeasterly direction over a distance exceeding 6km and a width of approximately 3.5km to depths in excess of 350m.  This is complemented by a smaller high grade zone in the southwest centered in Polygon 10.

The brine chemistry at Salar de Pozuelos is highly amenable to conventional solar evaporation processing and is complementary to the brine chemistry found at Salar Pastos Grandes.

Table 2: 2018 Drill Program, LSC Lithium Salar de Pozuelos Project

Table 3 provides a summary of the brine assay results from the pumping tests completed in the 2018 exploration program.

Table 3: Assay Comparisons for Pump Tests

Sampling and QA/QC

Brine sampling for packer tests involved collection of brine from the sample interval in a 20-litre container, which was flushed with fresh brine several times prior to collection of the sample. Brine was poured into 1-litre sample bottles which had been previously flushed with fresh brine from the 20-litre container several times. Sample bottles were filled to the top to eliminate the inclusion of air and sealed with a leak proof lid. Samples were labelled and labels covered in clear tape to prevent erasure of sample information. All samples remained in the possession of the site geologist until delivery to Alex Stewart Laboratory in Jujuy, Argentina. Brine sampling for the pump stress test involved collection of samples from a valve attached to the pump outlet. Brine was allowed to flush and then fresh brine was used to wash the sample bottle several times before collecting the sample. Sample bottles were 1-litre in size and were filled to the top to prevent entrance of air. The samples were sealed with a leak proof lid, labelled and the label covered by clear tape. Samples remained in the possession of the site until delivery to the assay laboratory.

Brine sampling for the pumping tests used the same sample collection and handling procedures. Depending on the nature and duration of the test, samples were collected every 15 minutes (step tests) or on a 1 hour, 3 hour and 8 hour schedule (2 day and 7 day continuous pumping tests).

RBRC samples were cut to length using a hack saw, bubble wrapped for protection and then placed in PVC tubes which were sealed with packaging tape. The samples were labelled and the labels wrapped in clear tape. Samples remained in the custody of the site geologist until shipped. Brine (20-litre) from each of the holes from which the samples were collected was also shipped to Daniel B. Stephens & Associates Inc. (“DBSA“) as part of the sample test protocol. DBSA is independent of LSC.

LSC has a well-developed QA/QC program. Brine assays are undertaken at Alex Stewart Argentina (“ASA”) S.A. in Jujuy, Argentina. ASA is independent of LSC and has significant experience in assaying lithium brines and is certified to ISO17025 standards. Brine assays are undertaken using ICP, gravimetric, potentiometric and volumetric methods as detailed in a press release from LSC dated April 10, 2017. ASA runs internal duplicates at a rate of 1 in 20. LSC inserts blanks and standards in sample batches at a rate of 1 in 20. Standards are internal standards developed by LSC that have been independently certified by round robin testing. LSC uses distilled water as blanks. 

Qualified Person/Data Verification

The scientific and technical information included in this press release is based upon information prepared and approved by Donald H. Hains, P.Geo.  Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC. Mr. Hains has verified all sampling, analytical and test data underlying the information contained in this press release by on-site inspection during drilling, brine sampling, and selection of RBRC samples; review of drill core photographs to verify lithology; review of certified assay certificates against the assay data base; review of pump test data; and review of RBRC results received from DBSA. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

A Technical Report prepared under the guidelines of NI 43-101 standards describing the Resource estimation will be filed on SEDAR within 45 days of this release.

ABOUT LSC LITHIUM CORPORATION:

LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its material projects: Pozuelos and Pastos Grandes Project, Rio Grande Project and Salinas Grandes Project. All LSC tenements are located in the “Lithium Triangle,” an area at the intersection of Argentina, Bolivia and Chile where the world’s most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.

For further information please contact: 
LSC Lithium Corporation 
Ian Stalker, President & Chief Executive Officer
40 University Avenue, Suite 605
Toronto, ON Canada M5J 1T1
+416 306 8380
Email: info@lsclithium.com
Web: lsclithium.com

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the timing and completion of its PEA study for the Pozuelos-Pastos Grandes Project, ability and likelihood of using combined resource of PPG in the PEA, timing of production and likelihood of producing in 2021, likelihood of meeting target production rate at PPG, ability and results of combining inventory from PPG, ability and timing of advancing LSC’s properties through various stages of exploration and resource development, and any other matters relating to the exploration and development of Pozuelos and LSC’s other properties. The use of any of the words “could”, “anticipate”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC’s current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC’s expectations is subject to a number of risks and uncertainties including factors underlying management’s assumptions, such as risks related to: drill program results; title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on LSC properties; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC’s share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company’s properties; risks and hazards associated with the business of development and mining on any of the Company’s properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information, see the Company’s filing statement on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange Inc. 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.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

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¹ See Technical Report titled “Mineral Resource Estimate and Technical Report on the Salar de Pastos Grandes Project, Salta Province, Argentina” with an effective date of October 28, 2018 filed on the Company’s SEDAR profile.
² See the Technical Report titled “Mineral Resource Estimate & Technical Report on the Salar de Pozuelos Project, Salta Province, Argentina” with an effective date of February 28, 2018 filed on the Company’s SEDAR profile.
³ This Measured and Indicated figure is comprised of 1,678,000 tonnes LCE from Pozuelos with average grade of 505mg/l Li and 939,080 tonnes LCE from Pastos Grandes with average grade of 464mg/l Li. This Inferred figure is comprised of 631,000 tonnes LCE from Pozuelos with average grade of 518 mg/l Li and 307,500 tonnes from Pastos Grandes with average grade of 467mg/l Li. Numbers have been rounded and may not add.