SOURCE: Neo Lithium Corp.

January 10, 2017 12:02 ET

Neo Lithium Drills High Grade Lithium Brine at Depth at the 3Q Project's Northern Target

TORONTO, ON--(Marketwired - January 10, 2017) -

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

  • Initial chemical results identify high grade lithium brine at depth consistent with surface results
  • Northern salar sediments at depth are composed of fine sand and sodium chloride, which tend to have very high porosity and permeability and therefore are ideal for hosting brine
  • Finding sand at depth is important as it reinforces the potential for a deep salar consistent with the previously disclosed geophysical results that indicate the existence of porous layers down to 300m
  • A drill hole through the alluvial cone to the east of the northern lithium brine reservoir identifies the presence of brine below 40m, reinforcing the previously reported geophysical results that indicate the significant size of the brine reservoir beyond its surface footprint

Neo Lithium Corp. ("Neo Lithium" or the "Company") (TSX VENTURE: NLC) today announced that Andina SA and Falcon Drilling, drill contractors for the 3Q Project, have completed the first two drill holes and preliminary geochemical results were received from Alex Stewart Laboratories ("ASL"), a third-party laboratory, from one drill hole.

Drill hole PP1-R-2, located in the northern portion of the northern salar and south of the northern lithium brine reservoir, was designed to test the northern salar's sediment composition as well as the grade of the brine at depth. This hole went down approximately 80 metres and remains open at depth. The entire hole is composed of fine sands and fine sodium chloride layers. These sediments are typically very favourable hosts for brine due to their high porosity and permeability. The hole was finished with 2 inch diameter filters all the way to the bottom and packed with gravel, to create a well. The well was pumped at a rate of 25 metres3/hour to remove the drilling mud for 4 hours. No brine draw down was detected even at this high flow rate. Sampling was done with a pumping rate of 8 metres3/hour and 5 brine samples were collected over a period of 2 hours of pumping (one every 25 minutes approximately). The average lithium grade of the brine that was pumped was 766 mg/l. The highest lithium grade was 769 mg/l and the lowest was 764 mg/l. The magnesium/lithium ratio was 1.8. These results at depth are remarkably consistent with the surface results from the northern salar (32 samples in total) containing an average lithium concentration of 784 mg/l and 1.87 magnesium/lithium ratio. Further chemical analysis of the brine is pending.

Drill hole PB1-R-1, located on the alluvial fan 1 km east of the northern brine reservoir (lake), was designed to test the extension of the brine found in the reservoir under the contiguous alluvial fan to the east, as identified by the previously disclosed geophysical results. The hole went down 120 metres and brine was identified below 40 metres depth. Chemical results for the hole are pending. These findings are important as they support the geophysical results that the lithium brine found in the northern reservoir extends beyond its surface manifestation under the large alluvial cone to the east. There is also a large alluvial cone to the west of the northern reservoir that remains to be tested.

"Although still early in the drilling program, these initial results support that the high grade / low impurity footprint found on surface at the northern target is being reflected at depth", said Waldo Perez, CEO of Neo Lithium. "In addition, the technical team was very encouraged by the finding of loose sands and sodium chloride layers under the northern salar as those are the ideal sediments for hosting brine in terms of high porosity and yield and support the findings of the geophysics that this is a deep salar."

The Company has recently contracted a third drill rig to ensure that the drill program is completed on time and to drill deeper in order to confirm the existence of deep porous layers identified by the geophysical results down to approximately 300m in certain areas of the northern target.

The resource estimation work is planned for Q2 2017 following successful completion of the ongoing drilling program.

The brine samples collected in the field were delivered by Company personnel to Andesmar Transport Company ("Andesmar") in La Rioja, in the province of Rioja. Andesmar delivered the samples by truck to ASL, an ISO 9001-2008-certified laboratory in Mendoza, Argentina. ASL used the following analytical methodologies: ICP-OES (inductively-coupled plasma-optical (atomic) emission spectrometry) to quantify boron, barium, calcium, lithium, magnesium, manganese, and potassium; an argentometric method to assay for chloride; a gravimetric method to analyze for sulfate; a volumetric analysis (acid/base titration) for the evaluation of alkalinity (as CaCO3); a gravimetric method to determine density and total dissolved solids; and, a laboratory pH meter to determine pH. All analytical work is subject to systematic and rigorous Quality Assurance-Quality Control. A reference ("standard") sample was inserted into the sample stream at a frequency of approximately 1 in 15 samples; a field blank was inserted at a frequency of approximately 1 in 15 samples; and a field duplicate sample was inserted at a frequency of approximately 1 in 15 samples.

About Neo Lithium Corp.

Neo Lithium Corp. is quickly becoming a 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. Surface exploration results indicate a high-grade lithium target in the northern portion of the salar complex extending for approximately 20 by 5 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 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 and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.

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.

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 lithium brine grades at depth being consistent with surface results, the potential of the northern salar sediments for hosting brine, continued positive drilling results and the timing for planned resource estimation work, and that test results are indicative of future results . 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. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. 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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