Ultra Lithium Inc.
TSX VENTURE : ULI

Ultra Lithium Inc.

June 09, 2016 14:29 ET

Ultra Lithium's Drill Hole Indicates Potential Presence of Brine at the South Big Smoky Valley Brine Lithium Project in Nevada, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 9, 2016) -

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Ultra Lithium Inc. (TSX VENTURE:ULI) ("Ultra Lithium" or "the Company") is pleased to announce the drill core and groundwater samples from its first drill hole indicate presence of Li-bearing brine at the South Big Smoky Valley brine lithium project.

The following are the highlights of the data collected from hole BSH16-01:

  • Assay results receive to date indicate anomalous values of lithium in drill core samples. The drill core logs show the presence of volcanic clays, organic matter and tuff at various depths which are documented to be contributed from Late Miocene to Pliocene tuffaceous lacustrine facies of the Esmeralda Formation. Several geological studies consider the Esmeralda Formation to be the source of lithium brine in the South Big Smoky and Clayton valleys. There are a few gypsum layers within sand and clay layers. The amount of volcanic material and tuffs increases with depth.
  • The drill core data shows the presence of multiple sand aquifers down to a drilled depth of 1,000 feet (305 metres) below surface. Water level as measured on June 04, 2016 was at 2 feet (0.6 meters) below ground surface indicating artesian water pressure from a confined aquifer at 349 to 479 feet (106 to 146 metres). The aquifer is comprised of sand with intervening thin clay layers.
  • Assays of groundwater samples taken at various intervals to a depth of 1,000 feet (305 metres) using Harris Exploration's sampling technique indicated anomalous values of lithium. The Company has installed a well and has taken representative groundwater samples. The Company will disclose the result of the analyses on these waters samples as they are available.

Based on (CSAMT) geophysical survey data, two potential brine targets were interpreted at this borehole location. Drilling results confirmed that the first target continues down to approximately 500 feet (152 metres) below surface, whereas the second target begins at 700 feet (213 metres). The second target is expected to continue down to 1,800 feet (549 metres) below surface which was the proposed depth of this hole. Harris Exploration, the drilling contractor was only able to drill down to 1,000 feet (305 metres) with core drilling and the hole was stopped due to artesian water pressure.

Dr. Weiguo Lang, CEO of Ultra Lithium, stated that, "We are very pleased with the information received from the first 1,000 feet of core drilling showing presence of brine and artesian groundwater aquifers. After this encouraging data, the Company has planned to bring a more powerful drill rig to complete this hole down to a depth of 1,800 feet and to drill the second hole to a depth of 2,200 feet. The brine target in the second hole is deeper and thicker than the first hole based on the previous geophysical survey (CSAMT). We are looking forward to the remaining assay results to gain a better understanding of the Big Smoky hydrogeological system."

Sampling and QA/QC:

All the samples are shipped to Western Environmental Testing Laboratory in Sparks, Nevada, which is an US EPA accredited independent laboratory. The samples are being analyzed for lithium, potassium, boron, and magnesium using Standard Methods for the Examination of Water and Wastewater, online edition, Methods for Determination of Organic Compounds in Drinking Water, EPA-600/4-79-020, and Test Methods for Evaluation of Solid Waste, Physical/Chemical Methods (SW846), Third Edition.

It is important to note the groundwater sampling method used by Harris Exploration is their proprietary technique of taking groundwater samples at a desired depth where a perforated probe is inserted at the last drilled interval and water is allowed to collect and retrieved at the surface through wireline. The sample retrieved using this technique has influence from drilling fluids and surrounding sediments, and the Company is disclosing these results only as qualitative indications of lithium within the brine systems at the Big Smoky Project. After completing and developing this well, groundwater samples were collected using submersible pumps and have been submitted to the laboratory for analysis. The Company is evaluating the drill core and groundwater samples assay results received so far. A comparison of groundwater sampling with Harris's dedicated sampling method and the samples retrieved using the submersible pumps will be carried out once complete results are available. The Company intends to carry out multiple rounds of water sampling to compare data using different methods.

The technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, P.Geo., a qualified person, as defined by NI 43-101 who works as a consultant with the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

Kiki Smith, CFO

About Ultra Lithium Inc.

Ultra Lithium is an exploration and development company with a focus on the acquisition and development of lithium assets. The Company is currently focused on North American acquisitions and exploring its Big Smoky Valley Project located in Nevada, USA.

About the South Big Smoky Valley Brine Lithium Project:

The Company holds a 100% interest in the Big Smoky Valley Project comprising 659 placer claims covering approximately 13,000 acres' land located in Nevada, USA. This Project has geological conditions favourable for hosting Lithium enriched brines. The Project is located 16 miles to the north of Albemarle Corp.'s Silver Peak mine which is the only brine lithium producing project in North America, and has been producing lithium from brines since 1966. The Company has completed a ground CSAMT geophysical survey and surface sediment / water sampling programs on the project and started drilling in 2016.

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