TSX Venture Exchange: LITH For Immediate Release
CALGARY, ALBERTA, July 6, 2022 – Lithium Chile Inc. (“Lithium Chile” or the “Company”) is pleased to announce that the Phase 2 drilling program, designed to expand the Company’s previously announced 1,420,000 metric tonnes (see February 8, 2022 News Release) of lithium carbonate resource has commenced.
The first of 2 diamond drill rigs contracted was mobilized to the Salar de Arizaro on the 28th of June such that drilling of the first of 4 exploration holes is now underway. Currently drilling though the halite cap, it is anticipated that the target zone identified in Lithium Chile’s recently completed pump test well will be entered within 10 days. While these holes are not designed to be production holes, they will provide the company with valuable data such as porosity, grades, and structural characteristics of the formation. It is anticipated that each of these exploration holes will take 45 days to complete. Samples will be taken throughout the drilling program with results being announced as they are received. One goal of these exploration holes is to increase the Company’s knowledge of the deposit. However, by successfully expanding the known arial extent of lithium bearing brines in the Salar de Arizaro, the Company expects that a material upward revision to its resource estimate would follow.
The rotary rig contracted to drill the first fresh water well on the Salar de Arizaro was mobilized on June 22, 2022, such that drilling on the Company’s southernmost claims is also underway. It is anticipated that the water well will take 3 weeks to drill to a total depth of 120 meters. Fresh water is critical for the production of lithium carbonate whether using traditional evaporation methods or new direct lithium extraction (DLE) technologies. After completion of the water well, the larger rotary rig will move on to the Company’s larger central claim block and begin drilling the first of 3 planned production wells. These 3 production capable wells are also designed to expand the Company’s initial resource estimate and provide the added benefit of accelerating the production potential of the Salar de Arizaro deposit.
Concurrent with the start of our drilling program, a mobile camp was built to accommodate the workers on-site. The on-site camp will house our employees which allows for non-stop operations and will significantly reduce the Company’s travel costs.
Steve Cochrane, President & CEO comments, “We are extremely excited to have the second phase of our Arizaro project underway. This program is designed to greatly enhance our initial resource numbers and expand the commercial potential of our Arizaro project. On top of this, our team’s ability to not only acquire the personnel and equipment in these challenging times in Argentina, but to deploy them in such a timely manner gives me great confidence in our ability to execute our Phase 2 plan.”
On-site camp at the Salar de Arizaro
Rotary Rig setup on the Salar de Arizaro
Rotary Rig setup on the Salar de Arizaro
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 79,700 hectares covering sections of 11 salars and 2 laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 22,429 hectares that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile’s Carmona gold/silver/copper property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-BB under the symbol “LTMCF”.
To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO via email: email@example.com, Jose de Castro Alem, Argentina Manager via email firstname.lastname@example.org or Michelle DeCecco, Vice President of Corporate Development via email email@example.com or at 403-390-9095.
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Forward Looking Statements
This news release may contain certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “expected”, “anticipated”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Such forward-looking statements are based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the general stability of the economic and political environment in which the Company operates; the timely receipt of required regulatory approvals; the risk that the new lithium or cesium exploration tender processes does not yield the anticipated benefits to the Company; the ability of the Company to obtain future financing on acceptable terms; currency, exchange and interest rates; operating costs; the success the Company will have in exploring its prospects and the results from such prospects and the COVID-19 pandemic. You are cautioned that the foregoing list of material factors and assumptions is not exhaustive. Although the Company believes that the assumptions and factors on which such forward-looking statements are based upon are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct or that any of the events anticipated by such forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive there from. The Company does not undertake to update any forward-looking statements herein, except as required by applicable securities laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.