VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 5, 2016) - Pacific Imperial Mines Inc. (TSX VENTURE:PPM) (the "Company") is pleased to announce that it has acquired by staking a 100% interest in the Eagle Mountain Lithium prospect located in Inyo County, California, within 15 kilometers of the Nevada border.
The Company has entered into a consulting agreement with Gold Exploration Management Inc., a private corporation controlled by David A. Bending, M.Sc., P. Geo., engaged in the business of providing mineral exploration project management services.
In addition to fees payable to the Consultant, and subject to the acceptance by the TSX Venture Exchange, the Company will issue common shares to the Consultant as a finder's fee for the Eagle Mountain mineral exploration property identified by the Consultant and acquired by the Company.
The finder's fee shall consist of between 2,000,000 and 4,000,000 common shares of the Company to be issued in 4 tranches over a period of 3 years, the final number of shares to be issued being dependent on the price per share of a proposed equity financing to be conducted by the Company and its continuing involvement. In addition to the fees payable and the Finder's shares issuable to the Consultant, the Company will grant the Consultant a 1% net smelter returns royalty from production.
The Eagle Mountain Property consists of 248 claims each 20 acres in size, totaling approximately 4,960 acres located in the Alkali Flats area, 10 km SSE of Death Valley Junction and covering most of the Eagle Mountain salina. Exploration logistics are excellent with property access within 3 kilometers of a paved highway.
The United States Geological Survey (USGS) reported sampling and drilling in closed basins throughout portions of Nevada, primarily in and around Clayton Valley and adjacent California. Its work in the claim area, near the western margin of the Eagle Mountain claim area, consisted of taking bore-hole samples from a 102.1 meter- deep hole. Of the 68 rock samples taken, 45 returned lithium values between 300 and 999 ppm and 22 assayed between 100 and 300ppm lithium; the results were the strongest anomalous values obtained by the USGS study of 23 playas.
Furthermore, the USGS from its studies of the only North American lithium producer, the Albemale Silver Peak Mine and its environment, as well as the large Chilean deposits from the Salar de Atacama, has developed a conceptual model for lithium brine deposits and identified seven first order characteristics that apply to them. This model was used as a guide to locate the Eagle Mountain Property and all of the characteristics clearly apply.
A satellite image of the claims and surrounding area shows that the Eagle Mountain salina lies within a north-south trending basin essentially closed to the south. This basin interacts at the western fringe with the Amargosa River drainage which is recognized by the USGS as regionally enriched in lithium ( 18 springs and wells in the Amargosa Desert averaged 105 micrograms per liter lithium).
The eastern parts of the basin are bounded to the east by a major north-south range- front fault. This trap basin is further defined by the west-northwest trending Eagle Mountain Fault to the west that separates the main trap basin from what is interpreted to be a zone of shallow mixing and erosion of the borates and evaporites on the salina's western fringe. It is within this zone that the USGS, for ease of access, located their drill-hole. The basin which remains closed and a suitable trap for brines, constitutes the vast majority of the property area.
A financing will be required in order to fund a work program aimed at evaluating the economic potential of the Eagle Mountain property. Subject to raising the necessary funds, an initial work program entailing geochemical sampling and geological mapping is planned to confirm lithium enrichment and to identify any zoning present. This would be followed by an airborne geophysical survey carried out to provide basin geometry and to locate potential conductive brine resources.
ON BEHALF OF THE BOARD
H. Leo King, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of the content of this News Release.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, including market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.