NI 43-101 Technical Report to be Filed
NGZ Trading Resumption Expected in Immediate Future
November 21, 2016 / Vancouver, BC / NRG Metals Inc. (the “Company”) (TSX-V: NGZ) (OTC Pink GPOFF) (Frankfurt OGPN) is pleased to provide further details on the Carachi Pampa Lithium Project, located in Catamarca, Argentina in the Lithium Triangle of South America. The company recently completed a Vertical Electrical Sounding (VES) geophysical survey that has identified a highly conductive horizon that is interpreted to represent a brine target with potential to host lithium.
The project, which comprises 6,387 hectares, is situated 40 kilometers south of the town of Antofagasta de la Sierra, Catamarca, at approximately 3,000 meters elevation. This region of Argentina is host to the Hombre Muerto Salar where FMC is producing approximately 20,000 tonnes of lithium carbonate equivalent per year as well as Galaxy Resources’ large development stage Sal de Vida project. Intense exploration activity in the area by international lithium companies has resulted in the discovery of several brine lithium deposits. There is a provincial road within 10 kilometers of the project area, and local support services are located nearby.
The conductive horizon was detected in all of the VES stations, which cover an area approximately 10 kilometers by 6 kilometers. The zone is characterized by very low resistivity values interpreted to represent a buried salar deposit of a highly conductive saline brine zone. The zone occurs at depths of 70 to 300 meters below surface. It is at least 150 meters thick, and it is open at depth and in all directions laterally.
The project area shares geologic features in common with other lithium rich salars in the region including the presence of volcanic rocks such as welded tuffs, ignimbrites anomalous in lithium and potassium and nearby recent volcanic activity. The basin contains diatomaceous earth anomalous in lithium, favorable structure and morphology and favorable high altitude weather conditions conducive to high evaporation rates.
Adrian Hobkirk, CEO of NRG Metals commented: “We are excited about the exploration potential of the large conductive zone that has been identified on the property in an area that contains anomalous lithium values in surface waters. We have assembled an outstanding lithium management team and we are excited about testing this new target by drilling.”
The VES geophysical survey was conducted by Conhidro S.R.L from Catamarca, Argentina. This method has been used extensively in Argentina to successfully delineate potential brine zones below surface. Based on the VES resistivity data, four separate zones or units with distinct resistivity characteristics are interpreted as follows (Figure 1).
- Unit 1: A near surface horizon with resistivity values ranging between 95 to 700 ohm/m. Conhidro interpreted this zone as a horizon of dry Quaternary sediments probably consisting of gravel and minor silts/clays.
- Unit 2: A semi-resistive layer with moderate resistivity values between 50 to 180 ohm/m, which Conhidro interpreted to be a gravel and sand horizon containing fresh to brackish water. The thickness of this zone ranges from 11 to 227 meters.
- Unit 3: A small semi-conductive zone with resistivity values ranging from 27 to 33 ohm/m that is restricted to the southwest corner of the claim group. This zone is interpreted by Conhidro to represent a sandy horizon containing fresh to brackish water, and it is 36 to 73 meters thick.
- Unit 4: This horizon was the target of the investigation. It is a highly conductive zone with resistivity values that range from 0.1 to 1.4 ohm/m interpreted by Conhidro to represent a zone of saturated brines. The zone begins at a depth of 70 meters in the southwest portion of the claim group, and it dips to a depth of 300 meters to the north northeast part of the claim group. The zone is at least 150 meters thick, and it is open at depth and in all directions laterally.
Figure 1. Generalized cross section showing Conhidro’s interpretation of the VES data.
Samples of surface and near-surface water were collected from various locations around the Carachi Pampa Salar. The samples contained anomalous lithium values, with values up to 55 mg/liter lithium 5093 mg/l potassium. The samples were analyzed by Alex Stewart Laboratory in Jujuy, Argentina, an ISO 9001 certified laboratory.
The next phase of exploration at Carachi Pampa will involve additional V.E.S. survey work and drilling. The Company has begun the approval procedure to obtain permits to drill four 400 meter exploratory core holes to test the target horizon.
The Company intends to complete and file a National Instrument 43-101 Technical Report on the Carachi Pampa Lithium Project within the coming days. Upon completion of this and other filing requirements, it is anticipated regulatory approvals will be secured and that shares of the Company will return to trade.
Further acquisition information and other details are expected prior to the resumption of trading.
On Behalf of the Board of Directors
Adrian F.C.Hobkirk, President and Chief Executive Officer
INFORMATION: 714-316-3272 or hobkirkadrian@gmail.com
The preparation of this press release was supervised by Mr. William Feyerabend, a Certified Professional Geologist and a member of the American Institute of Professional Geologists, and a Qualified Person as defined under National Instrument 43-101. Mr. Feyerabend approves the scientific and technical disclosure contained in this press release.
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.