TSX-V: LIS | OTCQB: LISMF | Frankfurt: OGPQ

Hombre Muerto North Project

Hombre Muerto North Lithium Project
Salta, Argentina

Lithium South is focused on the development of its flagship lithium brine project, Hombre Muerto North Lithium Project (HMN Li Project) in the Salta province of Argentina.

The property package of 3,287 hectares is comprised of six mining concessions. The project is strategically located with developed infrastructure.

The HMN Li Project is surrounded by two leading lithium producers, Korean giant POSCO and Livent at the northern end of the renowned Hombre Muerto Salar.

Lithium South project map

Lithium South is moving forward with the evaluation and development of alternative Lithium extraction technology. The Company currently has approximately 60 million shares issued and outstanding, and trades on the TSX Venture Exchange under the symbol LIS, on the OTCQB Market under the symbol, LISMF, and on the Frankfurt Stock Exchange under the symbol, OGPQ.

Slide
Slide
Slide
Slide
Previous slidePrevious slide
Previous slidePrevious slide
Next SlideNext Slide
Next SlideNext Slide
Hombre Muerto Salar Overview
Lithium South - Hombre Muerto North Lithium Project Package
Hombre Muerto North Lithium Project Claims

Project Overview

  • Test work is underway for Direct Lithium Extraction (DLE) – an alternative to the conventional evaporation process which potentially will shorten lithium extraction time and provide higher recovery of lithium.
  • PEA, using traditional evaporation, indicates attractive economics for a 5,000 tonne/year LCE operation with a CAPEX of $93.3M, OPEX of $3,112/t LCE, NPV(8) of $217M and IRR of 28.0%.
  • Exceptional Li Samples; 300 – 400 meter average 918 mg/l Li with a low Mg to Li ratio.
  • Excellent Pump Test Results – 26 liters per second of lithium brine in 72-hours.
  • Geophysical data indicates zones of low resistivity, interpreted to be potential lithium-bearing zones that are open at depth.
  • Adjacent to Galaxy Resources’ Sal de Vida lithium development project sold in May 2018 to Posco for US$ 280 Million.
  • Highly qualified, Argentina-based team of professionals experienced with lithium exploration, development, through to lithium production.

Work Completed
Two production wells drilled and cased

Resource Estimate

Resource Category Brine Volume (1000 m3 Li Grade (mg/liter) Li (Tonnes) Li2CO3 Equivalent (Tonnes) K Grade (mg/liter) K (Tonnes) KCI Equivalent (Tonnes)
Measured 119,862 797 96,000 509,000 7,039 844,000 1,609,000
Indicated 21,936 534 12,000 62,000 5,517 121,000 231,000
M+1 141,798 756 107,000 571,000 6,804 965,000 1,840,000

Completed PEA Report
Prepared under NI-101 shows highly positive results

HMN Li Project has an outlined Measured and Indicated Mineral Resources of .57M tonnes Lithium Carbonate Equivalent (LCE) and a projected mine life of 30 years. A recent Preliminary Economic Assessment returns a Net Present Value of US$ 217 million, CAPEX of US$ 93 million and an Internal Rate of Return of 30%. A Feasibility Study on the project is in progress which will include upgrading the current resource to a reserve status. 

Preliminary Economic Assessment Highlights

After-tax Net Present Value (NPV) 8% discount rate $217 Million
After-tax Internal Rate of Return (IRR) 28.0%
CAPEX Capital Expenditures $93.3 Million
OPEX Cash Operating Costs (per metric tonne of lithium carbonate) $3,112
Average Annual Production (lithium corbonate) 5,000
Mine Life 30 Years
Payback Period (from commencement of production) 2 Years 5 Months

Innovative Lithium Extraction
Leadership in the application of DLE technology at the project level

LIS is evaluating Direct Lithium Extraction (DLE) from three different sources. Chemphys is developing their process in Chengdu China using an absorbent. Eon Minerals, located in Salta, Argentina, is also developing a process using their patent pending absorbent. Finally Lilac Solutions of Oakland CA is developing an ion exchange process for rapid lithium extraction. All three will be testing their technology on a bulk sample of HMN Li Project brine. The technology with the best result will move forward to the pilot plant stage.

The intention of DLE is to:

  1. Reduce production time from months to hours
  2. Increase the recovery from 42% using traditional extraction, to over 80%
  3. Eliminate the need for large evaporation ponds
  4. Reduce the environmental footprint of any future production facility
  5. All results and testwork supervised on behalf of LIS by Dr. Vijay Medtha, a world recognized lithium extraction expert and Qualified Person

HMN Lithium Project Videos

CEO Statement

“I personally feel very optimistic that DLE’s efficiencies will replace conventional Lithium extraction methods which are slow as they’re dependent upon extracting lithium from ponds via a solar evaporation process.”

Adrian Hobkirk, President & CEO of Lithium South