SOURCE: Neo Lithium Corp.

November 28, 2016 08:00 ET

Neo Lithium Announces Initial Geophysical Results and Beginning of Drilling Program

TORONTO, ON--(Marketwired - November 28, 2016) -

  • Geophysical results indicate brine saturated layers down to 60 metres depth and semi-saturated brine layers down to 240 metres depth at the 3Q projects's northern target
  • Drilling will begin during the first week of December to test the chemical composition of the brine at depth and the drainable porosity of the aquifers

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

Neo Lithium Corp. ("Neo Lithium" or the "Company") (TSX VENTURE: NLC) has received initial geophysical results from Conhidro SRL on the high-grade lithium northern target.

The northern target encompasses a high-grade area that extends for approximately 14 km in length and 3 km in width with an average lithium concentration of 895 mg/l and potassium concentration of 7,694 mg/L (please refer to Neo Lithium's press release dated July 20th, 2016).

Vertical Electrical Sounding (VES) was completed in twelve stations, which represent about 40% of the total geophysical program being undertaken covering approximately 50% of the northern target.

Results show that this portion of the salar is composed of three main layers, consisting of: the upper highly conductive layer that has a thickness of 6 metres to 60 metres, the second intermediate conductive layer which has a thickness of 60 metres to 240 metres, and the third more resistive layer is below 240 metres. The three layers are interpreted to be the upper saturated brine layer, the intermediate semi-saturated brine layer and the deeper compact halite core layer.

Drilling will begin during the first week in December down to 250 metres to test all three layers, which will encompass brine sampling at discrete 10 metre intervals using packers to isolate each layer, core sampling to test drainable porosity of each unit as well as down-hole geophysics to carry electrical logging and gamma ray down the hole.

Drilling will be completed in batteries of 4 wells located approximately 25 metres from each other to carry out pump tests of the confined and unconfined aquifers.

About Neo Lithium Corp.

Neo Lithium Corp. is quickly becoming the most prominent new name in lithium brine exploration by virtue of its quality 3Q project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its newly discovered 3Q project -- a unique high-grade lithium brine lake and salar complex in the Latin America's Lithium Triangle.

The 3Q project is located in the Province of Catamarca, the largest lithium producer in Argentina. The Project covers approximately 35,000 ha and the salar complex within this area is approximately 160 km2. Recent exploration results indicate a high-grade lithium target (895 mg/l average lithium concentration) in the northern portion of the salar complex extending for approximately 14x3 km with the combined lowest magnesium and sulphate impurities in the industry. Low impurities are a key factor in traditional low cost evaporation techniques for final lithium carbonate production. Hot springs on the property with elevated lithium content are part of the recharge system of the salar complex. The technical team that discovered this unique salar complex is one of the most experienced in the modern era in lithium salars, having discovered and led the technical work, including resource definition and full feasibility study that established the Cauchari lithium salar as the third largest lithium brine resource in the world.

Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile.

Waldo Perez, Ph.D, P.Geo., the CEO and President of Neo Lithium Corp. is the Qualified Person who approved the scientific and technical disclosure in the news release. Geophysical Survey is being conducted by a reputable independent contractor Conhidro SRL using a CGEG DUK A2 equipment with stainless steel electrodes located at a maximum distance of 1300 metres.

Neither 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. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to the achievable concentrations of lithium from the 3Q's Project's brine, that test results are indicative of future results, the sufficiency and suitability of available land for pond construction, the suitability of brine from the 3Q Project for lithium carbonate production and the process therefor, and the future construction of pilot ponds and the timing therefor. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements

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