Advantage Lithium Corp.
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OTCQX : AVLIF

Advantage Lithium Corp.

April 03, 2017 08:00 ET

Advantage Lithium JV Hits Lithium in Brines with Two New Holes; Completes 2nd Phase Drilling

Clayton NE program ends with 100% drilling success rate and 5.54 km mineralized brine trend

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 3, 2017) - Advantage Lithium Corp. (the "Company" or "Advantage Lithium") (TSX VENTURE:AAL)(OTCQX:AVLIF) and its joint venture partner, Nevada Sunrise Gold Corp. ("Nevada Sunrise"), are pleased to announce that the final two holes of the 2016-2017 drilling campaign at their Clayton Northeast property ("Clayton NE, or the "Property") in Clayton Valley, Nevada, have intersected lithium in brine of up to 238ppm (hole CNE-17-05).

All six boreholes from the 2016/17 program intersected lithium-bearing brines in typical Clayton Valley aquifer systems. As a result of interpreted faulting and displacement, the sixth borehole, collared in the southwest end of the Property, passed through a major fault zone and was terminated at a relatively shallow depth.

The successful conclusion of the Phase 2 drilling follows positive results previously released from the three Phase 1 boreholes drilled in 2016 (see NRs dated November 1, 2016, December 5, 2016, and December 21, 2016) and from the first borehole of the Phase 2 program, hole CNE-17-04 (see NR dated March 1), which delivered the best results to date at Clayton NE, with Total Composite 426.72m of 243.44mg/l Lithium in Brines.

Ross McElroy, Technical Advisor for Advantage Lithium, commented: "These results conclude what has been a highly successful program at Clayton NE. Drilling during phase one and two has given us a 5.54 km mineralized brine trend that runs parallel to Albemarle's adjacent Silver Peak project, including drill holes that averaged more than 243mg/l over wide intervals and with associated excellent brine flow. We have drilled some of the deepest holes in the Clayton Valley region and encountered potentially untested aquifers. We are very pleased with the first systematic drilling program conducted at Clayton NE and look forward to advancing the project further."

2017 Drilling Program Highlights

  • All three of the Phase 2 boreholes intersected brine-bearing strata containing lithium. Holes CNE-17-04 and CNE-17-05 intersected multiple aquifer formations. Hole CNE-17-06 intersected one narrow aquifer zone:
    • Total composite of 426.72ms of brine-producing strata in CNE-17-04 at an average grade of 243.44 mg/l lithium, including 274.6 mg/l lithium over 79.2m (530.35m to 609.6m).
    • Total composite of 164.59m of brine-producing strata in CNE-17-05 at an average grade of 72.47 mg/l lithium, including 101.45 mg/l lithium over 91.44m (304.8m to 396.24m).
    • Total composite of 6.1 m of brine-producing strata in CNE-17-06 at a grade of 214 mg/l from a depth interval of 262.13m to 268.22m.

  • Successful extension of mineralized brine trend to 5.54km. Drilling has established strike length of significant lithium-bearing brines over 4.53 kilometres (between holes CNE-16-01 in the southwest of the Property through CNE-17-04 in the northeast). Drilling at CNE-17-06 has extended the trend of anomalous brine over an additional 1.01 kilometres to the southwest (between holes CNE-16-01 and CNE-17-06) for a total lithium-mineralized trend of 5.54km.

  • Nevada Sunrise and Advantage Lithium drilled deeper into potentially untested aquifers. Phase 1 and 2 boreholes targeted areas of deeper aquifers that may not have been commonly intersected by historical drilling in the Clayton Valley. Hole CNE-16-03, from the Phase 1 program, was one of the deepest boreholes drilled in the Clayton Valley and, based on results obtained, may have encountered a previously untested aquifer.

  • Permits/waivers obtained for future development of a lithium brine resource and wells. In November 2016, waivers were received from the Nevada Division of Water Resources for 5 of the 6 permitted holes, which allows for reaming a borehole to a larger diameter well, pump testing, and flow rate determination in order to provide the necessary technical information for development of an initial lithium brine resource at Clayton NE.

About the 2017 Drilling Program

The Phase 2 drilling program was comprised of a total of 1,389.89m (4,560 feet) in three RC holes and used a similar approach to the Phase 1 program that hit wide intercepts of lithium-bearing brine with strong brine flow rates. All six holes drilled in the 2016-2017 Clayton NE program are adjacent to the Silver Peak lithium brine field operation, North America's only producing lithium mine, operated by Albemarle Corporation ("Albemarle") (NYSE: ALB), in close proximity to several of its production wells.

The second borehole drilled in the Phase 2 program, CNE-17-05, intersected multiple aquifer formations containing brine-producing strata, but with more subdued levels of lithium in brine, which included 164.59m averaging 72.47 milligrams per litre ("mg/l") lithium between a depth of 256.03m and 420.62m metres, including a higher-grade interval averaging 101.45 mg/l lithium over 91.44m from a depth of 304.8m to 396.24m. The borehole was completed to a depth of 420.62m, terminating in Paleozoic bedrock.

The third and final Phase 2 borehole, CNE-17-06, passed through the Angel Island Fault Zone and encountered bedrock at a relatively shallow depth of 327.66m, earlier than in previous holes. The hole was completed to a depth of 347.47m, terminating in Paleozoic bedrock. In general, this hole produced relatively low saline-water flow. The exception was the zone from 262.13m to 268.22m that contained strong brine with lithium concentration of 214 mg/l.

CNE-17-05 - Technical Details

CNE-17-05 was completed to a depth of 420.62 metres (1,380 feet) into Paleozoic bedrock. The stratigraphy in the area of this hole has been affected by faulting and displacement and did not encounter the Main Ash marker unit. Lower lithium concentrations in brine were encountered in the hole than those encountered in other holes in the program. However, lithium concentrations in the zone from 304.8 to 396.24 metres averaged 101.45 mg/l, over 91.44 metres (300 feet). The highest lithium concentration was 238 mg/l in the zone from 304.8 to 310.89 metres. The entire sampled interval from 256.03 to 420.62 metres (164.59 metres) averaged 72.47 mg/l lithium.

CNE-17-06 - Technical Details

CNE-17-06 was completed to a depth of 347.47 metres (1,140 feet). It is interpreted that the hole was collared on the northeast side of the Angel Island Fault and penetrated the Angel Island Fault Zone at a depth of 170.60 metres (560 feet). Sediment cuttings indicate that the drill was in the Lower Gravel Aquifer beneath the fault to depth of 327.66 metres (1,075 feet) where the drill penetrated Paleozoic bedrock. With the exception of the narrow interval from 262.13 to 268.22 metres, this hole produced only weak brines. This interval did, however, produce relatively strong brine with a concentration of 214 mg/l lithium, high concentrations of other alkali metals, high specific gravity, and brine salinity.

Table 1: Results of Lithium in Brine Samples for CNE-17-05 and CNE-17-06

Drill Hole Aquifer System Interval (m) Total Dissolved Solids (TDS) mg/l Lithium
Range (mg/l)
Lithium
Average Grade (mg/l)
From To Width
CNE-17-05 Lower Gravel Aquifer 256.03 420.62 164.59 34,000 to 82,200 79.1 to 238 72.47
including 304.80 396.24 91.44 34,000 to 82,200 81.3 to 238 101.45
CNE-17-06 Lower Gravel Aquifer 262.13 268.22 6.1 26,600 NA 214.00

In addition to brine samples, throughout the 2016-2017 program drill cuttings were collected for each 1.5 metre interval and over 360 samples were submitted for analysis. Analytical results received for the drill cuttings for five holes of the 2016-2017 program indicate significant lithium values in sediments that range up to 1,440 parts per million ("ppm") lithium, as shown in Table 2 below. Analytical results for cuttings samples collected from hole CNE-17-06 are pending.

Table 2. Results of Lithium in Sediment Samples for 2016-2017 Drilling Program

Drill Hole Interval (m) Lithium
Range (ppm)
Lithium
Average Grade (ppm)
From To Width
CNE-16-01 164.59 518.16 353.57 93.7 to 1,150 413.83
including 298.70 408.43 109.73 382 to 1,150 741.17
CNE-16-02 188.98 426.72 237.74 78.6 to 254 155.76
including 256.03 274.32 18.29 217 to 254 228.67
CNE-16-03 188.98 591.31 402.34 71.6 to 770 364.14
including 463.30 591.31 128.02 256 to 770 611.68
CNE-17-04 6.1 609.6 603.5 72.7 to 1,060 380.32
including 420.62 481.58 60.96 610 to 1,060 779.09
CNE-17-05 73.15 231.65 158.5 610 to 1,440 932.58
including 103.63 195.07 91.44 730 to 1,440 1,030.00
CNE-17-06 pending pending pending pending pending

Clayton Valley Project Overview

  • Clayton NE consists of 55 unpatented claims totaling approximately 437 hectares (1,080 acres) located in the Clayton Valley sedimentary salar and is contiguous to the eastern boundary of Albemarle's Silver Peak property, North America's only lithium producer;
  • O'Keefe Drilling, of Butte, Montana, has been retained for the Phase 2 program to drill by RC equipment;
  • Several of Albemarle's lithium brine production wells are situated within approximately 100 metres and less of the Clayton NE western claim boundary.
  • Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
  • Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.

For further information on Clayton NE, including location maps, see the Company's website www.advantagelithium.com.

Groundwater samples were sent to Western Environmental Testing Laboratory in Reno, Nevada for analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a handheld YSI Model 556 Multiparameter Meter, which meets Good Laboratory Practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. All depth measurements reported, including sample and interval widths are down-hole. As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

Composite sediment samples were submitted to ALS Minerals in Reno, NV, and analyzed at ALS Minerals in Vancouver, BC. by way of 48-element, four-acid ICP-MS.

The technical information in this news release has reviewed and approved on behalf of the company by Ross McElroy, P.Geol., Technical Advisor for Advantage Lithium Corp., and a "Qualified Person" as defined in NI 43-101.

About Advantage Lithium Corp.

Advantage Lithium Corp. is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. The common shares of the company are listed on the TSX Venture Exchange (TSX VENTURE:AAL), and the company is also traded on the OTCQX Best Market in the U.S. (OTCQX:AVLIF). The company has acquired a 100% interest in five projects in Argentina and up to a 75% interest in a sixth, called Cauchari. Cauchari is host to a near-surface estimated inferred resource of 230 million cubic metres of brine at 380 mg/l Lithium that equates to 470,000 tonnes of lithium carbonate (LCE), and a large exploration target of 5.6mt to 0.25mt of LCE and 19mt to 0.9 of KCL. Cauchari is located just 20 km south Orocobre's flagship Olaroz Lithium Facility. The Company is also earning an interest from Nevada Sunrise Gold Corp., in a portfolio of five lithium brine projects in the Clayton and Lida Valley regions of Nevada, USA, including 70% in Clayton NE.

Further information about the Company can be found at www.advantagelithium.com.

ADVANTAGE LITHIUM CORP.

Per: David Sidoo, President

Cautionary Statement:

Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "is expected","intends", or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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