Neo Lithium Announces Maiden Resource Estimate at the 3Q Lithium Project

Neo Lithium Corp. announced a maiden resource estimate for the Tres Quebradas lithium brine project in Catamarca Province. An independent measured, indicated and inferred resource estimate has been completed under the supervision of Canadian-based Groundwater Insight, Inc., which will be included in a technical report to be released within 45 days in accordance with the requirements of National Instrument 43-101 («NI 43-101»).

The resource estimate was conducted along the entire salar and brine lakes of the 3Q Project covering an area of 8,183 ha covering the Northern Target, as defined in the Company’s current technical report and the Southern Target.

Table 1. 3Q Project Lithium and Potassium Resource Statement at 520 mg/L Lithium Cut-off

The low magnesium and sulfate content of the resource are consistent with prior samplings and drilling results and could make the brine very favourable for potential future processing. Table 2 summarizes the main impurities ratios for magnesium and sulfate.

Table 2. 3Q Project Impurity Ratios at 520 mg/L Lithium Cut-off

«This maiden resource estimate highlights the significant potential of the 3Q Project,» said Dr. Waldo Perez, President and CEO of Neo Lithium. «The size, grade and low impurities of the resource along with our preliminary process studies provide us with all of the building blocks as we quickly move to the Preliminary Economic Assessment phase.»

All the resource included in the 520 mg/L cut-off is in the area known as the Northern Target, which was originally identified by surface sampling that extends over the northern half of the salar. In the context of a sensitivity analysis, which does not constitute a mineral resource estimate, a lower cut-off of 400 mg/L would increase the Measured and Indicated resource to 1,224,305 tonnes of lithium carbonate with an average grade of 567 mg/L Lithium and the Inferred resource increases to 2,237,803 tonnes of lithium carbonate with an average grade of 567 mg/L Lithium. The Magnesium/Lithium ratio increases to 3.41 for Measured and Indicated resource and is also 3.41 for Inferred resources. The Sulfate/Lithium ratio is 0.64 for Measured and Indicated resource and 0.63 for Inferred resources.

Resource Estimation Methodology

The resource calculation is based on 10 diamond drill holes (total of 1,960 metres) and 13 rotary wells (total of 1,177 metres) on 11 platforms. The diamond drill holes had core recovered in HQ triple tube. Of the 10 holes used for the resource analysis, only three reached the basement; all others were terminated after reaching target depth or due to drill limitations. The total thickness of the basin, and the total thickness of saturated sediments, is unknown for most of the basin.

A total of 152 brine samples and 23 QA/QC samples were collected in drill holes. Brine samples were collected in diamond drill holes using standard packer technique (both single and double packer) to obtain samples from discrete levels of the formation. Fluorescein dye was used to ensure that the samples were representative of the collection interval. Intervals range from 2 to 50 metres, depending on the hole.

A simplified geology model was assembled from surface mapping and diamond drilling core. The deepest hole goes down 330 metres and does not intercept the basement. Six main geological units were identified:

• 3Q Project lake (standing body of surface brine at the north end of the salar);
• High Porosity Halite (extends from surface of the salar, down to 30 to 50 metres in depth);
• Upper Sediments (present under the High Porosity Halite, mostly in the boundary areas of the salar, down to 75 metres in depth);
• Porous Halite (present below the Upper Sediments or High Porosity Halite),
• Massive Halite (under the Porous Halite);
• Lower Sediments (present under the Massive Halite, although not all the drill holes extended to this unit).