Millennial Lithium Corp. (TSX VENTURE:ML)(OTCQB:MLNLF)(FRANKFURT:A3N2) (“Millennial” or the “Company”) reports positive analytical results from its first two complete exploration wells at the Pastos Grandes Project in Salta, Argentina. Exploration holes PGMW1601 and PGMW1602, drilled vertically to depths of 355 and 400 metres, respectively, in the Northern portion of the salar, ended in brine bearing formations …
As previously reported, exploration holes PGMW1601 and PGMW1602 were collared over 1.5 kilometres (km) apart and both encountered thick sequences of loose, brine-bearing sediments. Both holes were terminated in brine bearing formations at depths greater than anticipated.
Depth specific brine samples were collected at various intervals from both holes using drive-point and packer systems designed to isolate sample intervals. Nine brine samples collected from exploration hole PGMW1601, from surface to 355 metres, contain an average lithium grade of 395 milligrams per litre (mg/L) and an average magnesium/lithium ratio of 6.2. Individual lithium grades from the hole range from a low of 297 mg/L to a high of 471 mg/L. Ten brine samples collected from exploration hole PGMW1602, from 71 to 400 metres, contain an average lithium grade of 389 mg/L and an average magnesium/lithium ratio of 6.1. Individual samples from this hole range from 339 mg/L to 399 mg/L lithium. Average grades of these first two holes in the Northern section, are significantly higher than the results reported in historical drilling. Eramine SA, reported results from historical drilling which averaged a lithium grade of 331 mg/L to a depth of 125 metres (see Technical Report on the Pastos Grandes Project, Salta Province, Argentina, Rojas y Associados, September 14, 2016).
Phase I drilling has been confined to the Northern portion of the salar while property negotiations to expand the southern land package were ongoing (see Millennial news release dated December 20, 2016). Future drilling will include the Southern end of the salar where lithium values are expected to be higher. Two historical holes drilled by Eramine SA in 2011, in the southern portion of Pastos Grandes returned average lithium grades of 558 mg/L and 566 mg/L, significantly higher than Eramine drill holes in the Northern portion (see Technical Report on the Pastos Grandes Project, Salta Province, Argentina, Rojas y Associados, September 14, 2016).
Preliminary tests indicate a capacity for high flow rates. Field crews successfully constructed and developed a production-scale well, PGPW1601. Pre-testing of the well, comprising pumping at rates of up to the maximum rate for the pump used, 23 liters per second (L/s), resulted in a draw-down of just 11 metres below the static level. While preliminary, at a specific drawdown of only 0.5 meters per liter-second, this is a very positive indication of the pumping capacity for wells at Pastos Grandes. In addition to results from the pumping well, PGPW1601, flow testing during packer testing of all but one zones in the exploration wells resulted in brine flows exceeding 0.5L/s.
Results indicate that brine impurities improve with depth as confirmed by a decreasing magnesium to lithium ratio. Near surface chemistry in the 6 to 8:1 range (Mg:Li) decreases to below 6:1 at depth (Mg:Li). Observations and preliminary analysis from Millennial’s technical advisory board indicates that the sulphate content is well matched to counter calcium and magnesium in the brine and that a majority of these impurities can be reduced in an evaporation process. Conventional processing, as envisioned for Pastos Grandes, will also recover potash.
Iain Scarr, AIPG CPG., VP Development and Exploration, comments, “We are very pleased that our work has improved on historical results and has significantly increased the potential we see at Pastos Grandes. I would personally like to thank and congratulate our expert team, and look forward to advancing this project in 2017.”
Pumping tests and drilling, currently on hold due to the onset of summer rains, will resume in early March.
Sampling was conducted in accordance with CIM guidelines for brine resource evaluation, with an appropriate QA/QC program for ensuring accuracy and repeatability of the analytical results. Alex Stewart Laboratories of Mendoza, Argentina and partner laboratory, Norlab S.R.L. of Palpala, Jujuy, are the primary analytical providers. The laboratories have extensive experience with lithium brine analyses and are certified under ISO 17025, and in Alex Stewart’s case, specifically for determination of lithium and potassium in liquid brines by use of ICP-OES.
The Company has given notice (the “Notice”) of forced exercise to the holders (the “Warrantholders”) of 3,750,000 warrants (the “Warrants”) issued July 7, 2016. Under the terms of the Warrants, the Company has the right to force exercise of those Warrants on fourteen (14) days’ notice provided the trading price of the Company’s common shares has closed at or above $1.00 for a period of at least twenty (20) consecutive trading days prior. Exercise of the Warrants can be made by completing the Notice of Exercise attached to the Warrants and by providing payment in the form specified in the Notice of Exercise (bank draft or certified cheque). Those Warrants held by insiders of the Company, being approximately 50% of the Warrants, have all been exercised.
This news release has been reviewed by Iain Scarr, VP Development and Exploration of the Company and a qualified person as that term is defined in National Instrument 43-101.
MILLENNIAL LITHIUM CORP.
Graham Harris, Chairman, Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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