Lithium South drills up to 772 mg/L lithium at Hombre Muerto North, Argentina

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Lithium South Development Corp. [LIS-TSXV; LISMF-OTCQB; OGPQ-FSE] provided an update on the drilling campaign currently under way at the 100%-owned Hombre Muerto North (HMN) lithium project in Salta province, Argentina.

Highlights include five double packer samples obtained from first hole AS01 with lithium values range from 732 mg/l lithium to 772 mg/l lithium. Lithium magnesium ratio remains favorable at under 4 to 1. Drilling will continue to basement rock.

First hole AS101 began to turn on June 12, 2022. The hole is located in the middle of the Alba Sabrina Claim Block which, at 2,089 hectares, is the largest in the project package. The drilling method is diamond drill hole with double packer sampling at select intervals. Hole AS-01 has now been drilled to a depth of 262 metres, with the intention of drilling to the basement rock.

High-grade lithium values have been confirmed in five samples taken by double packer at select locations within the drill string completed to date.

The objective of the program is to potentially expand the current Lithium Carbonate Resource which is defined with an average grade of 756 mg/L lithium within 571,000 tons in the Measured and Indicated Categories.

The current Resource is contained solely on the Tramo Claim Block, which is 383 hectares in size. Tramo is one of five Salar-located, non-contiguous claim blocks that comprise the total project area of 3,287 hectares. The drilling program will focus on exploration on the Alba Sabrina Claim Block, which is 2,089 hectares in size.

A recent TEM Study at the Alba Sabrina Claim Block provides potential indication of a surficial halite aquifer of approximately 75 metres of depth, with potential indication of a clastic brine aquifer immediately below. The TEM Study was limited to a depth of approximately 350 metres, with the basement rock not confirmed. The drill program will attempt to drill to basement, limited to approximately 700 metres by the depth potential of the drill rig.

Company Director and Chief Operating Officer, Fernando Villarroel stated, “We are very pleased to encounter high lithium values in our first hole at the Alba Sabrina Claim Block. We look forward to continued drilling and to fulfilling our corporate milestone of substantially increasing the lithium resource at the project.”

The Hombre Muerto North Lithium Project (HMN Li Project) is at an advanced stage of evaluation, with a Preliminary Economic Assessment completed in April 2019. Lithium South is the 100% owner and expects to expand the known resource with its current drill program. Preliminary results support this expectation. Additional project work including permitting, environmental studies and process test work is ongoing.

The HMN Li Project is adjacent to a US$840 million lithium mine under development by the Korean multinational corporation POSCO, which acquired their holdings from Galaxy Resources Ltd. for US$280 million. Livent Corporation is producing lithium south of the Hombre Muerto North Lithium Project and has operated there for over 25nty-five years.

The Company is evaluating a conventional evaporation process method, and Direct Lithium Extraction (DLE) as an alternative method. DLE test work on 2,000-liter brine samples is currently in progress by Chemphys Chengdu, tive method. DLE test work on 2,000-liter brine samples is currently in progress by Chemphys Chengdu, in China, and Eon Minerals in Salta, Argentina.


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