Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) ("Lithium
Ionic" or the "Company") is pleased to present a summary of its key
accomplishments in 2023, as well as upcoming milestones and
objectives for ongoing success in 2024, as it continues to explore
its extensive land package and accelerate its flagship Bandeira
Lithium Project (“Bandeira”) towards a near-term production
decision in northern Minas Gerais State, Brazil.
Blake Hylands, P.Geo., Chief Executive Officer
of Lithium Ionic, commented, "I would like to thank our dedicated
team members as well as our shareholders for their ongoing support
as we reflect on a transformative 2023, which saw us evolve from an
early exploration stage company to a feasibility level,
permitting-stage project by year-end. We successfully executed on
all the plans we had set out for the year and demonstrated to the
market not only the quality and scale of the lithium deposits in
this region but also the speed at which they can advance. Notably,
we delivered a robust PEA showing the strong economic potential for
Bandeira to become among the lowest-cost spodumene concentrate
producers globally. We were pleased to see our consistent progress
result in strong market support and the initiation of coverage by
five equity research analysts throughout the year. This strong
momentum is expected to continue into 2024 with an upcoming
Feasibility Study and anticipated construction permits in mid-2024,
as we execute on our core focus and strategy of becoming a lithium
producer in the shortest possible timeframe and laying the
groundwork for a highly scalable project that we believe will
significantly contribute to the global lithium supply chain."
Exploration Success & Resource
Growth
Lithium Ionic’s extensive exploration work
conducted in 2023, including over 85,000 meters drilled across four
targets, significantly improved its understanding of the
lithium-bearing pegmatites in the region and demonstrated both the
large scale and future discovery potential of lithium deposits in
this district. With the completion of two NI 43-101 mineral
resource estimates ("MRE"), the Company demonstrated substantial
resource growth, particularly at the Bandeira deposit, considered
to be its Phase 1 project. The mineral resource estimates
established on Lithium Ionic’s properties in 2023 are as
follows:
BANDEIRA:M&I: 13.72Mt
grading 1.40% Li2O (474,892 LCE)Inferred: 15.79Mt grading 1.34%
Li2O (523,118 LCE)*Drill data cut-off of August 30, 2023. See
details and notes related to this MRE in the October 19, 2023 press
release.
OUTRO LADO:M&I: 2.97Mt at
1.46% Li2O (107,599 LCE)Inferred: 0.42Mt at 1.48% Li2O (15,168
LCE)* Drill data cut-off of June 30, 2023. See details and notes
related to this MRE in the June 27, 2023 press release.
An updated mineral resource estimate for
Bandeira, which will capture drill data beyond the August 2023
cut-off, is currently underway as part of the Feasibility Study,
which will include many of the widest and highest-grade lithium
drill intercepts returned to date (see press releases dated
November 2, 2023, November 6, 2023, November 15, 2023, December 12,
2023).
Exploration efforts will continue in 2024 with a
50,000-metre drill program planned for the year, aiming to further
expand existing deposits and establish new NI 43-101 mineral
resource estimates on other regional targets, including
Salinas.
Robust Initial Technical Study,
Feasibility Study Underway
The Preliminary Economic Assessment ("PEA")
completed in October 2023 positioned the Bandeira Lithium Project
as a globally competitive, low-cost spodumene concentrate producer.
The study outlined a technically simple and highly economical
mining project with a small footprint and a significant production
profile over two decades. Highlights of the PEA, included:
- Average annual production of ~218
kt of high-quality spodumene concentrate
- 20-year mine life
- Post-tax Net Present Value ("NPV")
8% of US$1.6 billion (~C$2.2 billion)
- Internal Rate of Return ("IRR") of
121%*see press release dated October 19, 2023, or Technical
Report HERE for further detail.
This study represents a snapshot in time based
on drill data up to the end of August 2023, and an ongoing
Feasibility Study, including an updated MRE, will integrate the
latest high-grade results obtained in the second half of the year,
which is expected to further expand and enhance the project’s
economic potential. The Company intends to progress with detailed
engineering following the completion of the Feasibility Study this
quarter.
Construction Permit for Bandeira
Expected in 2024
In November 2023, the Company initiated the
permitting process for Bandeira with the submission of the
application for the Concomitant Environmental and Installation
License. Approval is anticipated in mid-2024, resulting in the
environmental and social license and authorization to begin
construction.
In preparation for the project's construction
phase, Lithium Ionic appointed Brazilian mining veteran Paulo Misk
as Chief Operating Officer in December 2023, enhancing the
Company's technical expertise and providing it with the operational
capabilities to take the project through to production.
In October 2023, the Company secured a contract
for low-cost hydroelectric power to meet the long-term requirements
of the Bandeira project with the largest electricity distributor in
Brazil, Cemig Distribuição S.A., to facilitate the construction and
electrification of essential power infrastructure between the
existing power grid and the future Bandeira lithium operation
("Bandeira"), located approximately 3 kilometres from existing
power lines. This project, jointly managed by Cemig and Lithium
Ionic, will be ongoing in 2024 and is expected to be completed by
Q4 2025, aligning with the projected start of operations.
Strategic Land Acquisitions
Throughout 2023, the Company prioritized the
acquisition and consolidation of prospective properties in the
lithium-rich Araçuaí Pegmatite District, increasing its
landholdings 4-fold from 3,600 hectares to 14,182 hectares, making
it the second largest mineral claims holder in Brazil's prospective
"Lithium Valley". The lithium deposits it has established to date
lie on ground covering less than 2% of its total land holdings,
pointing to the excellent long-term growth potential of its
resource base and of the Company itself.
Additionally, the Company has acquired all the
surface rights for its flagship Bandeira project, a critical path
milestone towards its goal of developing this asset.
The Company intends to continue monitoring
opportunities and strategically acquiring properties in this
prospective lithium belt in 2024, underscoring its commitment to
long-term resource growth and reinforcing its status as a dominant
lithium player in the region.
Corporate Milestones: Expanding Traction
& Building Shareholder Value
Lithium Ionic's share price appreciated nearly
14% in 2023, from $1.52 to $1.75, hitting a daily high of $3.05 in
May, performing exceptionally well compared to the majority of its
peers or benchmarked against one of the leading ETF's in the space,
Sprott's Lithium Miners ETF, which ended the year down ~36% since
its inception in February. The Company raised $25 million in July
2023, supported by existing and new global institutional
shareholders, and ended the year with a solid financial position of
~$10 million. The Company continued to prioritize consistent
marketing efforts to expand its investor audience in North/South
Americas and Europe, which positively impacted its roster of
shareholders as well as its liquidity, averaging ~650,000 shares
traded daily.
The Company's major development milestones in
2023 resulted in strong capital markets support as it engaged with
leading Canadian and US brokerages. Over the year, five equity
research analysts initiated coverage on Lithium Ionic, providing a
significant endorsement for the quality and potential of its
projects and further expanding its shareholder reach.
The Company will continue to build upon its
marketing strategies in 2024 to expand its market presence and
attract new investors as it progresses through the pivotal
milestones planned for the year.
Priority on ESG &
Safety
In 2023, Lithium Ionic took essential steps in
formalizing its ESG and Safety framework. In Q2 2023, it
implemented ONYEN's ESG reporting software to capture, monitor,
manage and report ESG risks and opportunities and ensure that its
reporting meets the criteria of governments and international
sustainability agencies. The Company expects to publish its
inaugural Sustainability Report for 2023 this quarter. In Q4 2023,
the Company also implemented IRMA's (Initiative for Responsible
Mining Assurance) Mine Measure self-assessment for its projects to
help guide its future ESG programming and ensure that its
operations align with IRMA's Responsible Mining Standards and
practices. The Company is committed to developing and operating its
project responsibly and will continue to prioritize environmental
stewardship, stakeholder engagement, transparency and safety in
every facet of its operation.
“Lithium Valley” Initiative further
Enhances Excellent Mining Jurisdiction
In May 2023, the state government of Minas
Gerais, along with various state and municipal government agencies,
launched the "Lithium Valley" initiative, which aims to streamline
and facilitate lithium development and production in the Northeast
and North regions of the state to position it as a key global
player in the lithium supply chain. Lithium Ionic's entire
landholdings lie within the Lithium Valley, and in July 2023, all
of its properties and projects were granted "priority status" by
the state government (see July 19, 2023, press release). This
recognition, along with the state's prioritization of the battery
material sector, is expected to accelerate the licensing processes,
enhancing Lithium Ionic's operational readiness in a leading mining
jurisdiction.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company
exploring and developing its lithium properties in Brazil. Its
Itinga and Salinas group of properties cover 14,182 hectares in the
northeastern part of Minas Gerais state, a mining-friendly
jurisdiction that is quickly emerging as a world-class hard-rock
lithium district. Its Feasibility-stage Bandeira Project is
situated in the same region as CBL’s Cachoeira lithium mine, which
has produced lithium for +30 years, as well as Sigma Lithium
Corp.’s Grota do Cirilo project, which hosts the largest hard-rock
lithium deposit in the Americas.
Qualified Persons
The technical information in this news release
has been prepared by Carlos Costa, Vice President Exploration of
Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic,
who are both “qualified persons” as defined in NI 43-101. Mr. Costa
and Mr. Hylands have both read and approved the content in this
news release.
Investor and Media
Inquiries:
+1 647.316.2500info@lithiumionic.com
Cautionary Note Regarding
Forward-Looking Statements
The PEA is considered preliminary in nature and
includes Inferred Mineral Resources that are considered too
speculative, geologically, to have the economic considerations
applied that would enable classification as Mineral Reserves. There
is no certainty that the conclusions within the PEA will be
realized. The PEA is based on the material assumptions outlined in
the Technical Report. These include assumptions about the
availability of funding. While the Company considers all of the
material assumptions to be based on reasonable grounds, there is no
certainty that they will prove to be correct or that the range of
outcomes indicated by the PEA can be achieved. No mineral reserves
have been estimated for the Bandeira Project. Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability.
This press release contains statements that
constitute “forward-statements.” Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Although the Company
believes, in light of the experience of its officers and directors,
current conditions and expected future developments and other
factors that have been considered appropriate that the expectations
reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give
no assurance that they will prove to be correct. When used in this
press release, the words “estimate”, “project”, “belief”,
“anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information. The forward-looking statements and
information in this press release include information relating to
the prospectivity of the Company’s mineral properties, the economic
viability of the Bandeira, the mineralization and development of
the Company’s mineral properties, the Company’s exploration program
and other mining projects and prospects thereof, the Company’s
ability to complete a Feasibility Study, the Company’s ability to
complete an environmental impact assessment and obtain the
requisite permitting and approvals, the impact of managerial
appointments, the Company’s ability to acquire additional mining
rights, the impact of shareholder and investor outreach, the price
of the Company’s shares, and the Company’s future plans. Such
statements and information reflect the current view of the Company.
Risks and uncertainties that may cause actual results to differ
materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The forward-looking
information contained in this news release represents the
expectations of the Company as of the date of this news release
and, accordingly, is subject to change after such date. Readers
should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. The
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
Information and links in this press release
relating to other mineral resource companies are from their sources
believed to be reliable, but that have not been independently
verified by the Company.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
press release.
Lithium Ionic (TSXV:LTH)
Historical Stock Chart
From Apr 2024 to May 2024
Lithium Ionic (TSXV:LTH)
Historical Stock Chart
From May 2023 to May 2024