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LSC Lithium Announces Progress on Its Pozuelos-Pastos Grandes Preliminary Economic Assessment Project

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TORONTO, Aug. 07, 2018 (GLOBE NEWSWIRE) -- LSC Lithium Corporation ("LSC" or together with its subsidiaries, the "Company") (TSXV:LSC) is pleased to announce encouraging progress on exploration and pump testing for its Pozuelos-Pastos Project ("PPG"). The Company has engaged the internationally recognised engineering consultancy company GHD Limited to undertake a preliminary economic assessment ("PEA") on this combined PPG Project due to be completed by end of Q4 2018.

HIGHLIGHTS

Pozuelos

  • Three of the six planned pump tests have been completed with grades of up to 731mg/l from well SP-2017-10W1.
  • 14.394 line km of seismic data acquired along one survey line.
  • Construction of access roads and drilling platforms underway for exploration drilling in the north east of the salar.
  • Start of deep exploration drill hole PZ-18-01 in the centre of the salar, currently 315.03m.
  • Construction of the Pozuelos exploration camp to be completed in August 2018. Camp will be converted to administration offices during operations.
  • Updated Mineral Resource expected in Q4 2018.

Pastos Grandes

  • Significant progress achieved with drill hole PG-18-01 currently 541.4m. Average downhole grade of 491mg/l from surface to 474.62m depth.
  • 15.372 line km of seismic data acquired along six survey lines.
  • Maiden Mineral Resource Estimate expected end of Q3 2018.

PPG Project

  • Environmental Baseline Studies completed at both salars.
  • Ongoing PEA work for completion in Q4 2018.

LSC's President and CEO Ian Stalker, noted, "The PPG Project is now in full data acquisition phase to support the PEA and the subsequent Prefeasibility Study. Furthermore, the significant progress on the environmental baseline studies will ensure that we can submit our Environmental Impact Statement to the Regulator before year end. We remain on-track for a resource announcement at Pastos Grandes at end of Q3 2018. It is also important to note the added future operational flexibility (blending, pumping options, etc.) and increased scalability of production volumes this combined salar approach gives us at Pastos Grandes and Pozuelos, as well as being much more environmentally appropriate in having one, instead of two, footprints for an operational plant."

POZUELOS

Pump Test Progress

Pump tests at Pozuelos are proceeding as planned with three of the planned six completed. Table 1 below summarises the exploration well results.

 
TABLE 1
                 
Hole ID Coordinates Lithology Screen Depth Pump Test Li grade Grade trend Ave Pump Rate Draw Down
E N Tested From (m) To (m) Duration Hrs mg/l m3/hr m
SP-2017-02W 3416484 7270791 Halites 11 66.5 48 388 Slight increase 28.0 28.94
SP-2017-10W 3413190 7265929 Clastics 63 99 48 731 Constant 40.0 7.80
SP-2017-14W 3417966 7264929 Clastics 9 51 48 358 Constant 19.5 22.41
                     

Longer term 7-day pump tests are planned to confirm the aquifer yield and consistency of brine chemistry. Results from the pump test campaign at Pozuelos will be used in the development of a hydrological balance to support the Environmental Impact Assessment, which is planned to be submitted before the end of the year. Furthermore, pump test results will supply data for the hydrodynamic model, which is the precursor to the estimation of Mineral Reserves for the PFS, expected in Q3 2019.

Seismic Data

14.394 line km of seismic data was acquired in the southern area of the salar during June 2018 along one survey line. The results will be used in conjunction with previous seismic data and with the pump tests and exploration hole results to update the current Mineral Resource estimate, expected during Q4 2018.

Exploration Holes Progress

A civil works contractor has been commissioned to undertake the building of access roads and drilling platforms for the exploration holes in the north-east of the salar. Access from current roads along the north west section of the salar to the location of exploration holes PZ-18-02 and PZ-18-03 are progressing as planned and the location of PZ-18-02 has been reached. Construction of the drilling platform is to commence shortly, where after core drilling is to commence.

Progress with exploration hole PZ-18-01 is on track, with core samples being submitted to determine porosity values. Hole PZ-18-01 is currently at 315.03m below collar and progressing well.

Exploration Camp

In April 2018, LSC commenced the construction of a 40 person exploration camp at the Pozuelos salar. The camp will simplify future exploration logistics, support the construction and operation of pilot ponds and has been designed to be expanded for future mine operations. The camp is expected to be completed and occupied in August 2018.

Once the PPG Project has progressed from construction and production, it is intended that this camp will be expanded and utilized for mine administration offices and as an operational camp.

PASTOS GRANDES

Seismic Data

The acquisition of 15.372 line km of seismic data was completed during May and June 2018. This data will be used to support the maiden Mineral Resource estimate expected at the end of Q3 2018.

Exploration Hole

Exploration hole PG-18-01 is currently at 541.4m below collar and progressing well. Intersected lithogies are a combination of evaporites and sediments, with brine intersected throughout the complete drill hole. Average assay results over the entirety of the drill hole is 491mg/l down to a depth of 474.62m below collar.

The results of this hole will be used in the Maiden Mineral Resource estimate at Pastos Grandes at the end of Q3 2018.

PRELIMINARY ECONOMIC ASSESSMENT

Completion of Environmental Baseline Studies

LSC's environmental team has completed the biodiversity, soil, air, noise, water, archeological and social baseline studies at both Pozuelos and Pastos Grandes. These are important steps towards the completion of the Environmental Impact Statement, which is planned for submission in Q4 2018, after completion of hydrological balance model.

Kick-off of Preliminary Economic Assessment

In June 2018, LSC and its owner's team representatives attended the kick-off meeting of the PEA, hosted by GHD in Santiago. The meeting was focussed on identifying means to optimise process recovery, operating costs, capital costs and implementation schedule.

To support this strategy, an initial lab test work was completed to study the evolution of Pozuelos´ brine chemistry and the results of this work were used to design and calibrate a modelling tool that enables LSC to obtain a Mass Balance and pre-analyze projections of different scenarios. This supports trade-off studies against the defined base case for the PEA. A second stage metallurgical test work program, including both laboratory benchscale work and the construction of pilot ponds at Pozuelos is being developed. This expected to launch in August 2018.

Qualified Person

This press release is based upon information prepared and approved by Donald H. Hains, P.Geo.  Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC. Mr. Hains has verified all sampling, analytical and test data underlying the information contained in this press release by on-site inspection during drilling, brine sampling, review of drill core photographs to verify lithology, review of certified assay certificates against the assay data base and review of pump test data. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

ABOUT LSC LITHIUM CORPORATION:

LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its major projects: Pozuelos and Pastos Grandes (PPG), Rio Grande and Salinas Grandes. All LSC tenements are located in the "Lithium Triangle," an area at the intersection of Argentina, Bolivia, and Chile where the world's most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.

For further information please contact:

LSC Lithium Corporation
Ian Stalker
President & Chief Executive Officer
40 University Avenue,
Suite 605, Toronto
ON Canada M5J 1T1
+416 306 8382
Email: info@lsclithium.com
Web: lsclithium.com

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the timing and expected completion of delivering a PEA for the PPG Project, results and use of data from the pump test work on Pozuelos, ability, timing and successful completion of the drill program and seismic survey at the PPG Project, completion of access roads and drilling platforms, timing of completing a mineral resource statement on Pastos Grandes, expected timing for submitting the Environmental Baseline Study, timing of construction of the camp at Pozuelos, timing of completing engineering work on the PPG Project, timing and expected completion of delivering a PFS for the PPG Project, LSC's overall contained lithium inventory, and ability to produce more results on the Company's properties. The use of any of the words "could", "anticipate", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to: title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on the LSC properties; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC's share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information, see the Company's filing statement on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange Inc. 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 neither approved nor disapproved the contents of this press release.

___________________

1 See Company's Press Release dated June 6, 2018. 

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