RESOURCE EXPANSION DRILL PROGRAM
PRODUCING HIGH GRADE LITHIUM RESULTS
Fueling the power revolution
RESOURCE EXPANSION DRILL PROGRAM
PRODUCING HIGH GRADE LITHIUM RESULTS
Fueling the power revolution
Lithium Resource Expansion Underway
Lithium South is developing its Hombre Muerto North Lithium Project. With a solid maiden resource, an expansion drill program is underway to increase the resource size. The Alba Sabrina claim block is returning exceptional high-grade lithium results. The Company objective is to potentially expand the current NI 43-101 lithium resource to 2 million tonnes Lithium Carbonate Equivalent.
Our Flagship Lithium Project
Hombre Muerto North
OWNERSHIP – 100% ownership, no debt
GRADE – One of the highest lithium concentrations of any salar in Argentina
IMPURITES – Low Magnesium to Lithium Ratio
SOLID NI 43-101 LCE RESOURCE – .57 MT at 765 mg/l Li on Tramo Claim
PROJECT – Located within the lithium triangle known for lithium production
FEASIBILITY – Low-cost evaporation process favorable and environmental studies underway for Feasibility Study
PILOT PLANT – Construction underway for lithium production
Project Highlights
Mining Friendly Province, Salta Argentina
- History of lithium production
- Mining friendly jurisdiction
- Prime location on world renowned
Hombre Muerto Salar - Excellent access, with gas and water sources
- Project claim surrounded by Korean giant POSCO
Resource Expansion Drill Program Underway
- Drill rigs on site for an 8 hole program on Alba Sabrina claim
- Drilling to date has delineated a brine sub basin approximately 1.2 km wide by 7.6 km in length
- Current drill program offers potential to substantially expand current Lithium Carbonate Equivalent (LCE) resource
- Drill program near completion and calculation of upgraded lithium resource anticipated in Q2 of 2023
Feasibility Study Progress
- Feasibility study to be completed 2023 based on upgraded resource size
- Environmental Study near completion
- Topographical Study underway
- A feasibility study evaluates whether a mining project is economically and technically possible, how much investment is required to build out.
Qualified Proven Team
- Very strong technical lithium experience
- Office and laboratory located in Salta, Argentina
- World renowned, Vijay Mehda, technical consultant and qualified person
- Dr. Mark King, a Qualified Person (QP) under NI 43-101 is supervising the 2022-23 drill program
High Quality Brine Resource
- High quality, low impurities brine
- High-grade lithium brine – 756 mg/L
- Low Mg/Li ratio – 2.6:1
- A high-grade, low impurity brine equates to lower capital expenditure
- 2022-23 drill program results indicate a large high-grade, low magnesium brine zone
Solid 2019 PEA Results
- Preliminary Economic Assessment completed 2019 on 5,000 TPA LCE
- Current resource based on only 14% of the total project area
- Current LCE market price considerably higher than 2019
- New upgraded Preliminary Economic Assessment (PEA) anticipated in 2023
RESOURCE EXPANSION DRILLING UNDERWAY
The objective of the drill program is to potentially expand the current Lithium Carbonate Resource.
- 8 core hole drill program on largest claim block in Argentina’s world-class Salar del Hombre Muerto
- Alba Sabrina claim is the largest of the nine claim blocks totaling 5,687-hectare HMN Li project.
- PEA: 571,000 tons Lithium Carbonate Equivalent (M&I) on just 14 percent of the property.
- The resource expansion drill program is comprised of four core wells (Holes AS01, AS02, AS03 and AS04) located north to south, and three monitor wells (Holes AS05, AS06 and AS07) located west of the core wells.
- The final core well AS02 has been completed to a depth of 410 meters, assays pending.
- The overall average of the three wells sampled to date is 740 mg/l Li.
Company President Adrian F. C. Hobkirk is quoted,
“The ongoing exploration is returning consistently excellent results. Holes located to the west of the claim area are delineating the Alba Sabrina salar channel to be wider than expected, which could positively impact the expansion of the total resource at the Hombre Muerto North Lithium Project.”
Lithium South developing its flagship HMN Li Project at record speed
ACQUISITION
Lithium South (formerly NRG Metals) completes acquisition of Hombre Muerto North Lithium Project (HMN Li Project) and issues options.
HIGH GRADE LITHIUM CONFIRMED
Brine sample results of first drill hole confirm high grade lithium – 918 mg/L lithium – at Tramo claim block.
TRAMO CLAIM DRILL HOLE RESULTS
Lithium South reports results for first and second drill holes on Tramo claim block.
POSITIVE PEA RESULTS
Preliminary Economic Assessment (PEA) completed with positive results for the production of lithium carbonate at the HMN Li Project. Results based on $12,000 tonne LCE.
ENVIRONMENTAL STUDY BASELINE SUBMISSION
Company Vice President, Fernando Villarroel is quoted: “We are very pleased with the progress made to date for environmental permitting. Conclusion of the baseline study will provide a key element of the planned Feasibility Study.”
TEM RESULTS CONFIRM RESOURCE EXPANSION
Time Domain Electromagnetic (TEM) study identifies additional lithium resource potential at Alba Sabrina claim block. The Alba Sabrina claim block is the largest block in the package.
ENVIRONMENTAL BASELINE STUDY COMPLETE
Completion of the Environmental Baseline Study is an important milestone for the development of the HMN Lithium Project and a key component toward the completion of a Feasibility Study.
LITHIUM RESOURCE EXPANSION DRILL PROGRAM UNDERWAY
A 2,000-meter drill program that consists of three core wells on the Alba Sabrina claim block. The objective of the program is to potentially expand the current Lithium Carbonate Resource which is defined as 756 parts per million lithium within 571,000 tonnes in the Measured and Indicated Categories with a low magnesium to lithium ratio of 2.6 to 1.0.
EXCELLENT LITHIUM RESULTS
The drill program consists of seven drill holes (one per pad) located north to south across the project area for 6.5 kilometers. Results to date show high-grade lithium values:
AS01 hole – 300 meters, 722 mg/L lithium average
AS02 hole – 410 meters, assays pending
AS03 hole – 260 meters, 663 mg/L Li average
AS04 hole – 270 meters, 734 mg/L lithium average
AS05 hole – 220 meters, 705 mg/L Li average
AS06 hole – 180 meters, 644 mg/L Li average
AS07 hole – drilling currently underway
Watch Video
Adrian Hobkirk, CEO of Lithium South shares Company Overview on The Morning Drive with Karl Boyd
CEO Statement
“Our 2022 resource expansion drill program is returning excellent lithium results. We look forward to completion of the program and the calculation of a new Lithium Carbonate Equivalent resource.”
Adrian Hobkirk, President & CEO of Lithium South