Acquisition Highlights:
- District-scale 33,846 hectares Arizaro project is located in
one of the world's largest and least explored salars thought to
contain elevated lithium brine values
- Potential to increase and enhance brine processing at Sal de
Los Angeles, Lithium X's flagship
project, by combining with brine products from Arizaro
- The entire salar is staked with other current land holders in
Arizaro including Eramet, Sentient and REMSA (Salta
Government)
- Purchase price of 3,500,000 common shares and USD $250,000 for a 100% interest, subject to certain
conditions
- In line with Lithium X's growth by acquisition strategy to
become the go to pure play lithium company in the world
Sal de los Angeles Highlights:
- Metallurgical testing in on-site evaporation pools has achieved
4% lithium concentration at Sal de los Angeles with 5% expected by
the end of Q1 2017
- Salta Exploraciones S.A. Joint Venture has initiated
construction of the camp expansion
- Construction equipment and supplies to be dispatched shortly,
with a focus on construction of brine capture and pumping
systems
- Exploration program to commence in February 2017, focusing on resource expansion and
resource category upgrade
VANCOUVER, Jan. 30, 2017 /CNW/ - ("Lithium X", or the
"Company")(TSX-V: LIX)(OTCQX: LIXXF) is pleased
to announce that the Company has entered into a binding purchase
and sale agreement (the "Agreement") to acquire 100% of the
Arizaro lithium brine project (the "Project") in Argentina's Salta
Province. The Project consists of 33,846 hectares in 11
mining claims covering parts of the western and eastern portions of
the Salar de Arizaro, one of the district's largest known salt
lakes. (Refer to Figure 1: The Arizaro Project, which can also be
found on the Company's website at www.lithium-x.com.)
"Arizaro is an accretive acquisition for Lithium X, well priced
under current market conditions, with considerable exploration
potential," commented Executive Chairman, Paul Matysek. He continued, "It is one of the
largest salars in the world thought to contain elevated lithium
brine values and has gone largely unexplored. Preliminary
indications of brine geochemistry suggest the possibility of
employing Arizaro Project brine products to increase and enhance
processing of Sal de los Angeles brine, the Company's flagship
asset, also located in Salta, Argentina."
The Arizaro Project benefits from good infrastructure in the
Puna region, and is set to benefit from further development of
adjacent large-scale mining projects, including First Quantum's
Taca-Taca copper project and Fortuna Silver's Lindero gold project.
Salar de Arizaro is traversed by a highway and railroad that
connect the Project to Chile and
Pocitos, where natural gas and an Industrial Park are found. Other
property owners in Arizaro include Eramet, Sentient and REMSA
(Salta Government). Historical sampling on the western margins of
the Salar de Arizaro show elevated lithium values near surface
contained within a classic halite dominant salar, much like nearby
Rincon, Salar del Hombre Muerto and Atacama projects, all of which
host advanced or producing lithium brine operations.
In consideration for the Project, Lithium X will pay USD
$250,000 and issue 3,500,000 common
shares to the Vendor for a 100% interest in the Project on closing,
which is subject to receiving valid title certificates. In
connection with the purchase a finder's fee of 5% of the total
acquisition price (USD $12,500 and
175,000 shares) shall be payable.
The acquisition of the Project is subject to certain conditions
including, but not limited to, receipt of all necessary approvals,
including the approval of the TSX Venture Exchange.
The Company is currently planning an exploration program to
assess the quantity and quality of the contained brine at Arizaro,
as well as beginning to assess the brine for use in mixing with Sal
de los Angeles brine.
Sal de los Angeles Project Update
Since Eduardo Morales, Chief
Operating Officer and Andres
Barrientos, General Manager, joined the Company the Company
has been pilot processing Sal de los Angeles brine, testing two
flow sheet designs both aimed at producing a 5% lithium brine
concentrate. The evaporation and crystallization path of this
brine has been within expectations, following a similar
crystallization path to the Salar de Atacama brine employed in the
current producing facilities at that location. The concentrated
brine is currently at 4% lithium by weight and the first batches of
product at 5% lithium concentration are expected by March 2017, which will then be shipped to
potential end users and for testing of battery grade lithium
carbonate at laboratory scale by the Company.
"Half way through our first summer season, we are extremely
pleased with the evaporation rates and crystallization path of our
brine," commented Chief Operating Officer, Eduardo Morales. He continued "upon
Andres Barrientos and my
incorporation into the Lithium X team, we designed a ponding flow
sheet that would enable the production of a 5% lithium brine that
is both potentially a commercial product and feed for a battery
grade lithium carbonate plant. The Sal de los Angeles brine is now
at 4% lithium concentration, having followed the crystallization
path at our on-site pilot pools within expectations, reaffirming my
conviction as to the high processing quality of this brine.
With current evaporation rates we expect to reach our target
concentration before the end of March, 2017 demonstrating in this
way a full cycle is achievable within a single summer season."
Following the completion of the upgraded brine resource at SDLA
in August 2016, follow-up exploration
and resource definition was planned and is set to commence in
February 2017. Work will focus on expanding the resource and
upgrading the existing resource further. Resource expansion
will consist of additional seismic surveys and drilling to basement
depths to the north of the existing resource boundary. The
northern portion of the basin contains the higher grade brines
hosted in predominantly sand and gravel layers, with approximately
9 square kilometres of this area yet untested by drilling.
Resource upgrading will consist of additional long and short term
pump tests as well as collection of additional samples for relative
brine release capacity testing.
The Salta Exploraciones S.A. ("SESA") and Potasio y Litio de
Argentina S.A. ("PLASA") Joint Venture "SESA JV") has initiated
construction of the camp expansion required to commence
construction of the pumping, piping and ponding facilities.
The camp shall be increased from 17 people to 40 people,
accommodating the additional work force to be employed during the
upcoming construction. Equipment and supplies for
construction of the brine collection, pumping and piping facilities
are to be dispatched shortly followed by construction of these
facilities once all necessary permits have been received. A
detailed construction schedule will be released when such permits
have been received.
The scientific and technical content and interpretations
contained in this news release have been reviewed and approved by
VP of Project Development William Randall, a Qualified Person as
defined by NI 43-101, Standards of Disclosure for Mineral
Projects.
About Lithium X Energy Corp
Lithium X Energy Corp. is a lithium exploration and development
company with a goal of becoming a low-cost supplier for the
burgeoning lithium battery industry. Lithium X owns 50%, and
has the option to acquire up to 80%, of the Sal de los Angeles
lithium brine project in the prolific "Lithium Triangle" in mining
friendly Salta province, Argentina, a well-known salar with a large
resource and high concentrations of lithium. Lithium X's
Arizaro project consists of 33,846 hectares located in one of the
world's largest salars thought to contain elevated lithium brine
values. Lithium X is also exploring a large land package in
Nevada's Clayton Valley, contiguous to the only producing
lithium operation in North America
– Silver Peak, owned and operated by Albemarle, the world's largest
lithium producer. Lithium X is listed on the TSXV under the trading
symbol LIX.
For additional information about Lithium X Energy Corp., please
visit the Company's website at www.lithium-x.com or review the
Company's documents filed on www.sedar.com. Join the
Company's email list at http://lithium-x.com/subscribe.
ON BEHALF OF THE BOARD OF DIRECTORS
"Paul Matysek"
Paul
Matysek
Executive Chairman
References to "production" or "pilot production" herein should
not be construed to imply that the Company's Sal de Los Angeles
Project is in commercial production or that it contains mineral
reserves. Further technical studies will be required to assess the
project's viability. There is no certainty that a potential mine
will be realized or that a production decision will be made.
Neither the 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 news release.
This news release contains certain forward-looking information
and forward-looking statements within the meaning of applicable
securities legislation (collectively "forward-looking statements").
Certain information contained herein constitutes "forward-looking
information" under Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "expects", "believes", "aims
to", "plans to" or "intends to" or variations of such words and
phrases or statements that certain actions, events or results
"will" occur. Forward-looking statements are based on the opinions
and estimates of management as of the date such statements are made
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed by such forward-looking statements
or forward-looking information, including the business of the
Company and the commencement of trading in the Company's shares.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and forward
looking information. The Company does not undertake to update any
forward-looking statements or forward-looking information that are
incorporated by reference herein, except as required by applicable
securities laws.
SOURCE Lithium X Energy Corp.