VANCOUVER, British Columbia, Oct. 28, 2020 (GLOBE NEWSWIRE) — Alpha Lithium Corporation (TSX.V: ALLI) (OTC: ALLIF) (“Alpha” or the “Company”) is pleased to announce the start of its drilling campaign at its flagship Tolillar Lithium Project in Salta Province, Argentina, in the heart of the world-renowned Lithium Triangle. Building on successful capital injections and establishing a $10 million treasury (see press release September 2, 2020), the Company further provides a comprehensive operational update and summary of upcoming plans for capital deployment.
As previously noted, (see press release May 14, 2020), sampling at shallow depths on the Tolillar Salar have returned lithium concentrations as high as 504 mg/L.
Upon conclusion of our recent geophysics campaigns, the last of which is still undergoing final analysis prior to publishing the results, the Company is now mobilizing equipment and personnel to commence drilling operations, starting with the targets identified in the first geophysics campaign. The drilling program is estimated to entail a minimum of four locations, combining rotary and diamond drilling, in addition to coring operations. At least one location is planned to secure a strategic and valuable fresh water source, which will be essential for future production and operations.
Diamond drilling will provide larger and cased wellbores with perforations or slots aligned with zones that are identified geologically or geophysically as zones of interest. Flow-tests can subsequently be conducted on these lithological units to determine effective permeability. Brine samples can also be taken at multiple intervals during the flow tests to determine brine chemistry and quality. Core-holes are intended to provide the company with geological samples that can provide quantitative measures of drainable porosity. All data obtained from drilling can be utilized to advance the Company’s hydrogeological and geochemical models.
Brad Nichol, President and CEO reports, “The initial geophysics and sampling that has been completed have compelled us to start drilling immediately. We have valid drilling licenses in hand for some of the initial targets and our local team is renewing those few that expired during Argentine COVID shutdowns. Those reapplications are now underway, as is the drilling program on the licenses we do have in hand.”
The Company envisions three phases of drilling and all targets have been chosen based on geophysical identification of significant and highly conductive zones of interest:
- Phase 1 Drilling – Two holes drilled to shallow targets: Drilling licenses are currently in hand and operations such as road and platform construction are already underway. The first phase of geophysics indicated brine presence at shallower depths (see press release dated July 16, 2020). Two initial holes are projected to be drilled up to 100 meters in 90 days or less. Small, agile and locally available rotary drilling equipment will be utilized to complete this first phase. The Company expects to produce from, and collect valuable information on, the upper lithology identified during the first geophysical campaign to better understand the salar’s hydrogeological system.
- Phase 2 Drilling – Up to four holes drilled to medium-depth targets: Regional COVID shutdowns postponed the Company’s ability to submit simple permit renewal applications to maintain the current licenses on these locations. With a return to normalized regional operations, the Company has successfully submitted the required applications to reinstate the drilling permits for holes ranging from 250 – 400 meters. The initial geophysics results also indicated potential deeper targets. The second phase of drilling is predicted to take up to 120 days to complete. A more capable, heavier, rotary drilling rig will be secured to drill these deeper wells. The data collected from this second round of drilling are expected to complement the shallower drilling results and sharpen the parameters of sub-surface model for the salar. Alpha envisages having the drilling licenses approved prior to completion of the shallow holes with the objective of maintaining continuous drilling operations.
- Phase 3 Drilling – Additional holes based on latest geophysics results and surface samples: While the final geophysical results still pending (see press release October 6, 2020), the Company anticipates the final report to identify additional targets. This expanded target area coincides with the highest sampled lithium concentrations (504 mg/L) in the salar with a correspondingly low magnesium-to-lithium ratio (3.76:1). Accordingly, Alpha’s management team has its highest expectations for this area.
Nichol continued, “We are very eager for our local expert team to complete their analysis on the latest geophysical data, which will allow us to choose additional drilling locations in the area identified as our highest priority and highest potential. We are obviously very excited about drilling the current prospects and adding additional locations as they are identified. We will provide our shareholders with updates on geophysics, drilling permits and drilling progress, as those details become available.”
Alpha’s team of operational experts have proven their ability to operate at high altitude and within the current COVID-restricted environment. Any necessary upgrades to Alpha’s existing on-site camp will be made, to handle additional equipment and personnel that will be operating on the Tolillar salar in a COVID-conscious environment.
Mr. Michael Rosko, MS, PG, SME #4064687, of E. L. Montgomery and Associates of Santiago, Chile (“M&A”), is a Registered Geologist (C.P.G.) in Arizona, California, and Texas, a Registered Member of the Society for Mining, Metallurgy and Exploration, and is a qualified person (QP) as defined by NI 43-101. Mr. Rosko has extensive experience in salar environments and has been a QP on many lithium brine projects. Mr. Rosko and M&A are completely independent of Alpha Lithium Corp. Mr. Rosko has reviewed and approved the scientific and technical content of this news release.
Branding and Awareness Update
Further to the Company’s July 22, 2020 news release, Alpha has continued the engagement of Promethean Marketing Inc. (“Promethean”) on a month-to month basis. Promethean will continue to provide marketing, general corporate awareness and investor relations services to the Company on the same basis as it did previously. The total cost of Promethean’s services will vary on a monthly basis and is not anticipated to materially exceed the average monthly cost of Promethean’s initial engagement.
ON BEHALF OF THE BOARD OF ALPHA LITHIUM CORPORATION
President, CEO and Director
For more information:
Alpha Lithium Investor Relations
Tel: +1 844 592 6337
About Alpha Lithium (TSX.V: ALLI) (OTC: ALLIF)
Alpha Lithium is a growing team of industry professionals and experienced stakeholders focused on the development of the Tolillar Salar. Together, we have assembled 100% ownership of what may be one of Argentina’s last undeveloped lithium salars, encompassing 27,500 hectares (67,954 acres), neighboring multi-billion-dollar lithium players in the heart of the renowned “Lithium Triangle”. Other companies in the area exploring for lithium brines or currently in production include Galaxy Lithium, Livent, and POSCO in Salar del Hombre Muerto; Orocobre in Salar Olaroz; Eramine SudAmerica S.A. in Salar de Centenario; and Gangfeng and Lithium Americas in Salar de Cauchari.
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. While these statements reflect management’s current plans, projections and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of the Company. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. The Company’s actual results, programs, activities and financial position could differ materially from those expressed in or implied by these forward-looking statements. The Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
Neither the 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.