January 4, 2023 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to provide a 2022 summary of milestones achieved and a milestone plan for 2023.
I. Purchase Agreement – In March of 2022, the Company achieved a major milestone by completing the purchase agreement for the Hombre Muerto North Lithium Project (HMN Li Project). The completed transaction gave LIS 100% ownership of the project, subject to an underlying royalty.
II. Environmental Baseline Study – The Environmental Baseline Study was completed in 2022, forming the base data for the final preparation of an Environmental Report for any future lithium production facility. The work covers the entire 3,287 hectare claim package and will be a key part to the upcoming Feasibility Study.
III. Resource Expansion Drill Program – In June, a resource expansion drill program was initiated at the 2,089-hectare Alba Sabrina claim block, the largest in the salar project package. To date, six holes of an eight-hole program have been completed. Results have been consistent with lithium values well over 700 mg/L Li, and very low magnesium. Drilling will continue into February of 2023. At that time, Groundwater Insight, Inc. of Halifax, Nova Scotia will complete an updated resource study.
IV. Evaporation Test Work – was initiated in July of 2022. The objective is to validate recovery expectations in real world conditions with evaporation ponds on the salar site. In addition, the production of Lithium Carbonate Battery Grade is underway on HMN Li Project brine samples.
I. Conclusion of Drill Program – The resource expansion drill program is anticipated to conclude in February of 2023. Resource modelling is currently underway with the present data, and future results will allow for the calculation of an upgraded lithium resource. The intent of the program is to confirm the potential to expand the 2019 Preliminary Economic Assessment production facility based upon a larger lithium resource.
II. Evaporation Test Work Results – Evaporation test work is well along, and results are expected in early 2023. The first production of Lithium Carbonate Battery Grade to validate the process is expected to be completed in the first quarter.
III. Feasibility Study – The Company is extending Request for Quotation to well-known lithium industry engineering firms for the completion of a Feasibility Study. A candidate is expected to be selected in the first quarter.
Company President and Chief Executive Officer Adrian F. C. Hobkirk is quoted, “We are very pleased with this year’s progress at the HMN Li Project. The development team has accomplished significant technical milestones, and we look forward to 2023.”
About Lithium South
The 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 of the HMN Li Project 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 Hombre Muerto North Lithium Project is adjacent to a US$4 billion 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 to the south of the Hombre Muerto North Lithium Project and has actively operated there for over twenty-five years.
On behalf of the Board of Directors
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com
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