PRODUCING BATTERY-GRADE LITHIUM CARBONATE
PRODUCING BATTERY-GRADE LITHIUM CARBONATE
TO MEET THE DEMAND FOR ELECTRIC VEHICLES
Fueling the power revolution
PRODUCING BATTERY-GRADE LITHIUM CARBONATE
PRODUCING BATTERY-GRADE LITHIUM CARBONATE
TO MEET THE DEMAND FOR ELECTRIC VEHICLES
Fueling the power revolution
A De-risked Quality Lithium Asset
Development Ready
with enough lithium to supply well over a Million EV’s per year
Lithium South is paving the way for electrification by advancing a high quality lithium brine resource located on the world-renowned Hombre Muerto salar in Argentina. It’s flagship project, the Hombre Muerto North (HMN Li Project) benefits from a desirable high-grade, low impurity lithium brine. With a recently completed Environmental Impact Report, the next phase for the project is a Definitive Feasiblity Study prior to a production decision. Located next to POSCO’s billion dollar lithium mine development, the HMN Li Project is poised to become a future lithium producer.
Our Flagship Lithium Project
Hombre Muerto North
OWNERSHIP – 100% ownership, no debt
RESOURCE – 1.58 MT Li resource of high quality brine (90% measured)
GRADE – Excellent grade of 736 mg/l Li
IMPURITIES – Low magnesium to lithium ratio of 3.2 to 1
PILOT PLANT – Process test work and pilot plant underway
PRODUCTION WELL – Production well installation underway
FEASIBILITY – Feasibility Study, mid 2025
LOCATION – World-renowned Hombre Muerto salar in Argentina, surrounded by successful operators and multi-billion-dollar lithium mines
Project Highlights
Located in the Lithium Triangle
- 40% of global production
- >90% of Brine Resources
- HMN Li Project is 100% owned
- Located in Salta Province, Argentina on Hombre Muerto Salar
- Five claim groups located between POSCO and Rio Tinto
- Excellent Infrastructure
- Lithium production adjacent to claim blocks
High Grade, Low Impurity Brine
- 1.58 million tonne LCE resource
- 1176 Li (mg/l) on high-grade portion of the salar
- Average Grade 736 mg/L Li
- Low 3.2 to 1 magnesium to lithium ratio
- 92 % of the current resource in the measured category
- 70% lithium recovery with industry standard low risk evaporation extraction
Proven Processing
- Similar process producing
in the region >20 years - Fully functional laboratories,
expanded pilot scale ponds and
enhanced pilot plant - HMN Li Project produced
battery grade lithium carbonate in laboratory settings
Outstanding Results
- Pre-feasibility Study completed
- Definitive Feasibility Study (DFS) has commenced
- Significantly undervalued against peers
Preliminary Economic Assessment
- After tax NPV of US$938 million
- After tax IRR of 31.6%
- After tax payback of 2.5 years
- PEA based on a production rate of 15,600 tonnes of lithium carbonate technical grade per year
Proven Team / Permits
- Strong local technical lithium experience
- Fiscal stability in the place
- Permits in place
CEO CORPORATE UPDATE
Adrian Hobkirk, CEO of Lithium South shares Company Overview on September 12, 2023.
HOMBRE MEURTO NORTH Li PROJECT
Aerial view of Alba Sabrina – the largest claim block at 2,089 hectares.
Conceptual rendering of evaporation ponds on Alba Sabrina claim block
LIS and POSCO Cooperative Development Agreement
- Viamonte and Norma Edit claim blocks remain to be drilled
- 50/50 brine share agreement with POSCO
- Located on a highly porous portion of the Salar de Hombre Muerto
- Rio Tinto producing lithium XX kilometers south of the claim blocks
- Could add significant through put to the future Definitive Feasibility Study
Lithium South has advanced the HMN Li Project towards production
EXPANSION DRILL PROGRAM BEGINS
Lithium South drilling campaign underway at the Hombre Muerto North Lithium Project (HMN Li Project) in Salta Province, Argentina. The first hole AS01 has now been completed to a depth of 270 meters.
Expansion Drill Program Completed
The 2022-2023 resource expansion program is comprised of a total of eight core wells, seven were drilled on the Alba Sabrina Claim Block, the largest in the project package at 2,089 hectares. Combined with the newly completed hole NM01 at the Natalia Maria Claim Block, and the 2018 drill program at the 383-hectare Tramo Claim, over 75 % of the salar located claims has now been drill tested.
AS01 hole – 300 meters, 722 mg/L lithium average
AS02 hole – 410 meters, 633 mg/L Lithium average
AS03 hole – 260 meters, 663 mg/L Lithium average
AS04 hole – 270 meters, 734 mg/L lithium average
AS05 hole – 220 meters, 705 mg/L lithium average
AS06 hole – 180 meters, 644 mg/L lithium average
AS07 hole – 180 meters, 644 mg/L lithium average
NM01 hole – 375 meters, 1176 mg/L Li average, Natalia Maria claim block
175% Increase in Lithium Resource
Lithium Resource Expansion Success
Highlights
• 1,583,100 tonnes Lithium Carbonate Equivalent (LCE)
• 90% of Resource in Measured Category
• Average Grade 736 mg/L Li
• Low Magnesium to Lithium Ratio of 3.27
First Production Well Installed
October 25, 2023 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt OGPQ). The first production well at the HMN Li Project, located in Salta Province, Argentina, has been installed. The well has been drilled to a depth of 60 meters and is now being cased and screened. A pump test will begin immediately upon hole development. Hole depth was determined by lithological history and at site drilling observations.
With the compilation of final results from the drill program, the Company looks forward to the full program results and to the delineation of an updated lithium resource. The high-grade lithium results across seven holes at Alba Sabrina, as well as the very high-grade lithium samples from Natalia Maria, demonstrate the potential of the HMN Li Project.
Cooperative Agreement with POSCO
Lithium South announces an agreement with POSCO Argentina SAU, a wholly owned subsidiary of South Korean industry giant, Pohang Iron and Steel Company (POSCO). The newly signed Cooperative Development Agreement marks a significant milestone in the Company’s progression towards lithium production, setting the stage for an innovative collaboration in the development of the Hombre North Lithium Project (HMN Li Project), located in Salta Province, Argentina.
Preliminary Economic Assessment (PEA) Completed 15,600 TPA LCE
The 2024 PEA Report provides support for Lithium South to proceed with development plans for a 15,600 tonnes per year lithium carbonate plant, located at its wholly owned, Hombre Muerto North Lithium Project (“HMN Li Project”) in Salta, Argentina. The extraction and recovery process for the project is based on conventional solar evaporation of the well brine, magnesium removal with slaked lime and lithium carbonate precipitation using soda ash, which is an industrial proven method of lithium production.
The financial model shows a Net Present Value after tax of US$938 million, an after-tax Internal Rate of Return of 31.6%, and a 2.5-year payback.
Environmental Baseline Study – Phase I Complete
September 12, 2024 / Vancouver, BC / Lithium South Development Corporation (the “Company” or “Lithium South”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce the successful completion of Phase I of the Environmental Baseline Study for the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina. The report was completed by Knight Piesold Consulting (Argentina), a global engineering firm. The evaluation has taken 18 months and represents an important step for moving the project towards development.
The report presents comprehensive data pertaining to hydrology, hydrogeology, soil quality, flora and fauna, landscape and socio-cultural impact. The report establishes an environmental baseline from which the Company can further develop the project to an anticipated production rate of 15,600 tonnes per year of lithium carbonate using industry standard evaporation. This report will be key to the completion of an Environmental Impact Report seeking permissions to construct the mine.
LITHIUM SOUTH VALUE PROPOSITION / 1.58 MT LCE High Quality Brine
- 175% resource expansion
- 1.58 MT tonnes Lithium Carbonate Equivalent (LCE)
- 90% of Resource in Measured Category
- Average Grade 736 mg/L Li
- Low Magnesium to Lithium Ratio of 3.27
- HMN Li Project owned 100% on Hombre Muerto Salar
- Located in mining-friendly, Salta and Catamarca Provinces
- Strategically located near successful operators and major lithium mines, representing a significant undeveloped opportunity in the region.
- The project is surrounded by successful operators and multi-billion-dollar lithium mines and may be one of the last undeveloped major land plays in the region.
US $4 Billion lithium development next door
Recent Lithium Acquisitions – Hot M&A Market
Millennial sold to Lithium Americas for
US $400 million
Neo Lithium sold to Zinjin Mining for
CAD $960 million
Rincon Mining sold to Rio Tinto for
US $825 million
Lithea Inc. sold to Gang Feng for
US $962 million
Galaxy sold to Posco for US $280 million
Arena Minerals sold to Lithium Americas for US $227 million
CEO Statement
We are now arriving at an important milestone for the HMN Li Project, the filing for construction permissions. The Company is moving this process ahead in conjunction with completing a Definitive Economic Assessment. During this process, the project may be further enhanced in throughput size, exceeding the 15,600 tonnes per year recently published in our Preliminary Economic Assessment. We look forward to completing the required engineering and well drilling on a fast-track basis.
Adrian Hobkirk, President & CEO of Lithium South