Neo Lithium reports Argentina maiden lithium resource

Neo Lithium Corp. [NLC-TSXV; NTTHF-OTCQX] has announced a maiden resource estimate for the Tres Quebradas lithium brine project (3Q Project) in Catamarca Province, Argentina. An independent measured, indicated and inferred resource estimate has been completed under the supervision of Canadian-based Groundwater Insight, Inc., which will be included in a technical report to be released within 45 days in accordance with the requirements of NI 43-101.

The resource estimate was conducted along the entire salar and brine lakes of the 3Q Project covering an area of 8,183 hectares covering the Northern Target, as defined in the company’s current technical report entitled Technical Report on the Tres Quebradas Lithium Project, Catamarca Province, Argentina, dated June 6, 2016, and the Southern Target, described in Neo Lithium’s press release dated February 28, 2017 and March 20, 2017.

• Measured and indicated resource of 714,242 tonnes of lithium carbonate equivalent at an average grade of 716 mg/L lithium
• Inferred resource of 1,339,546 tonnes of lithium carbonate equivalent at an average grade of 713 mg/L lithium
• Conservative cut-off grade of 520 mg/L lithium one of the highest levels in the industry
• Average combined impurities for magnesium/lithium and sulphate/lithium continue to be the among the lowest in the industry
• Measured and indicated magnesium/lithium and sulfate/lithium of 1.99 and 0.52, respectively
• Inferred magnesium/lithium and sulfate/lithium of 2.07 and 0.54, respectively
• Significant potential for resource expansion at depth

“This maiden resource estimate highlights the significant potential of the 3Q Project,” said Dr. Waldo Perez, President and CEO of Neo Lithium. “The size, grade and low impurities of the resource along with our preliminary process studies provide us with all of the building blocks as we quickly move to the Preliminary Economic Assessment phase.”

All the resource included in the 520 mg/L cut-off is in the area known as the Northern Target, which was originally identified by surface sampling that extends over the northern half of the salar (see the 2016 3Q Report). In the context of a sensitivity analysis, which does not constitute a mineral resource estimate, a lower cut-off of 400 mg/L would increase the measured and indicated resource to 1,224,305 tonnes of lithium carbonate with an average grade of 567 mg/L lithium and the inferred resource increases to 2,237,803 tonnes of lithium carbonate with an average grade of 567 mg/L lithium. The magnesium/lithium ratio increases to 3.41 for measured and indicated resource and is also 3.41 for inferred resources. The sulfate/lithium ratio is 0.64 for measured and indicated resource and 0.63 for Inferred resources.

The resource calculation is based on 10 diamond drill holes (total of 1,960 metres) and 13 rotary wells (total of 1,177 metres) on 11 platforms. Of the 10 holes used for the resource analysis, only three reached the basement; all others were terminated after reaching target depth or due to drill limitations. The total thickness of the basin, and the total thickness of saturated sediments, is unknown for most of the basin. A total of 152 brine samples and 23 QA/QC samples were collected in drill holes.