Resource upgrade confirms the 3Q Project as one of the largest and highest-grade lithium brine deposits in the world
Significant high-grade resource estimate at 400 mg/L Lithium cut-off:
- Measured and indicated (M&I) resource estimate of 4,005,000 tonnes of lithium carbonate equivalent at an average grade of 614 mg/L Lithium
- High grade zone in the northern portion of the project with a M&I resource estimate of 1.106 million tonnes of lithium carbonate equivalent at an average grade of 1,106 mg/L Lithium
- Inferred resource estimate of 2,917,000 tonnes of lithium carbonate equivalent at an average grade of 584 mg/L Lithium
- Average combined impurities for Magnesium/Lithium and Sulphate/Lithium continue to be very low
- Potential for resource expansion still exists at depth
Neo Lithium Corp. announced an updated resource estimate for its 100% owned Tres Quebradas lithium brine project (“3Q Project”) in Catamarca Province. On the basis of this updated resource estimate, the 3Q Project deposit represents one of the largest and highest grade undeveloped lithium brine deposits in the world.
Of note is that there is a high-grade zone in the northern part of the project with a Measured and Indicated resource estimate of 1.106 million tonnes of lithium carbonate equivalent with an average grade of 1,106 mg/L Lithium (using a 800 mg/L cut-off).
“With our second highly successful drilling campaign now completed, we have demonstrated that the 3Q Project is one of the largest lithium brine discoveries of recent times,” said Dr. Perez, President and CEO of Neo Lithium. “The Measured and Indicated Resource estimate increased 227% from the maiden resource, confirming even more clearly the significant potential that we envisioned for this project.”
Most of the measured and indicated resource is located above 200m of depth and in the northern and central parts of the salar complex, while most of the inferred resource is located in the southern end of the salar complex and at a depth below 400m. There is an opportunity to further expand the exploration program at depth (below 400 m) and within the boundaries of the salar complex, where the brine wedge expands into the surrounding alluvial cones.
“This expanded resource has a very strong positive impact on the current engineering program we are developing at the project,” said Gabriel Pindar, COO of Neo Lithium. “We will evaluate the potential for production expansion, since the mine plan defined in the preliminary economic assessment on the project (the “PEA”), announced on October 31, 2017, at 35,000 tonnes per year represents only 17% of the total measured and indicated resource.”
The Company has not yet completed an economic study of the 3Q Project taking the new larger mineral resource estimate into account. Given that the Company does not expect mineral extraction methods to change as a result of the increased mineral resource estimates and the grade and location of the resource remains substantially the same, the Company believes that the PEA is still relevant as a preliminary indication of the economic potential of the 3Q Project.
The Company continues to advance the project in terms of process refinement, weather data collection and hydrogeological model completion.