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Salar Tolillar Project

Highlights

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Located within the Argentina section of world-famous “Lithium Triangle”.

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Surrounded by multi-billion dollar Lithium assets.

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100% ownership of the Tolillar Salar, one of the last remaining undeveloped salars in Salta Province, Argentina.

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27,500+ hectares secured with proven existence of lithium offers drastically reduced exploration risk.

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10 km from the largest and longest producing salar in Argentina; FMC’s (now Livent Corp) high-quality/low impurity Fenix Project.

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Up to 504 mg/L identified from limited previous testing on <10% of claim area.

Tolillar Project Details

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  • The project currently consists of 10 Exploitation Concessions (minas) totalling 27,500 hectares registered in the Salar de Tolillar basin in the province of Salta, Argentina.
  • The Tolillar project is located in the renowned Lithium triangle of Argentina, Bolivia, and Chile and within the Puna geological region of northwest Argentina.
  • At Salar Tolillar, early stage investigations have shown Lithium concentrations up to 504 mg/L in borehole samples in 2015. As of 2019, drilling licenses are approved for immediate commencement.
  • The Tolillar project area has never been extensively explored, yet is uniquely located close to a concentration of major players representing some of the largest producers of lithium who collectively service a large percentage of the growing global demand.
  • Proximal to the Hombre de Muerto Salar (10km NW), the premier lithium brine basin in Argentina with high grade, low impurities, (Li: Mg <4); Livent’s El Fenix operation has been in production for over 20 years.
  • Local operations include Galaxy Resources (mkt cap; A$830m), Livent Corporation (ex-FMC Corp., NYSE listed); mkt cap; ~US$2.6bn) and POSCO (mkt cap. A$27bn).
  • Regional infrastructure includes local skilled workforce, high-grade roads, rail, airport, trucking infrastructure, electrical power and natural gas.

Salar Tolillar Geology

  • The Tolillar Salar occupies an internally drained (endorheic) basin.The oldest rocks in the area are the Tolillar Formation, which consists mainly of early Ordovician sediments.
  • Outcrops formed by marine sediments occur east from the salar area. The stratigraphic sequence continues with younger continental sediments which includes conglomerates, sandstones and mudstones with gravels, sands and clays that occur on the margins of the salar, and evaporite deposits within the salar proper.
  • The floor of the salar consist of two distinct deposit types. The northern part consists of an earthier crust weakly cemented with salt. To the south, the salt crust varies in thickness from several centimeters, to 20-30 centimeters
  • All surface water that flows into the basin is either evaporated directly, or enters the groundwater circulation system and is evaporated at a later time. Water levels tend to be relatively shallow in the flat part of the salar.
  • The principal sources of water are from surface into the basin from the margins. There appears to be limited mixing of the fresh water and brine due to density differences. Evaporation of fresh water in the basin results in concentration of the dissolved minerals and ultimately results in brine generation
  • Results of exploration well DDH_B_01 indicate that basin-fill deposits in the north part of the Project can generally be divided into the following two hydrogeologic units:
    • An upper clastic and evaporite unit that extends from land surface to a depth of about 55 meters, and consists of halite and clay, with minor sand and silt.
    • A lower clastic unit that extends from 55 meters to the maximum well depth of 208 meters, and consisting of coarser, interbedded sand, silt, and gravel.
  • Based on VES geophysical results, deeper units are likely to exist, including basement rock. Future exploration drilling at depth will provide a better understanding of the entire sedimentary sequence within the Project area.
  • Recent studies have shown the region is underlain by an extensive magma chamber at 4 to 8 km deep (de Silva, 1989)
    and is potentially the ultimate source of anomalously high values of lithium in the region.

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Infrastructure

Salar Tolillar Infrastructure

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  • Solar radiation is intense, particularly during the summer months of October through March, leading to extremely high evaporation rates.
  • A 600-megawatt (Mw), 375 kilovolt (Kv) power line between Salta and Mejillones in Chile passes about 150 km north of the Property. The line reportedly transmits 110 Mw from Mejillones to the Argentinean Interconnected System.
  • A natural gas line (Gasoducto de la Puna) passes along provincial highway RP.17 south from Salar de Pocitos. This pipeline is less than 10 km east from the Project area.
  • The nearest rail line in the region is an existing narrow-gauge railway between Salta, Argentina and the pacific coastal port of Antofagasta, Chile.
  • The Project is connected to Salta, Salar de Pocitos and San Antonio de los Cobres by a well maintained, paved and unpaved road network. RP-17, which is a gravel and dirt road, passes within 10 km of the Project.
  • Full services, including fuel and medical services at San Antonio de los Cobres, a 3-hour drive, and Salta city, a 6-hour drive.

Workplan

Timeline—A Phased Approach

Complete geophysics study (geological and seismic).

1

Based on interpreted aquifer depth, Up to 10 deep wells constructed and tested.

2

Lithium evaluation at depth indicates local resource potential and drives next phase.

3

Area drilling develops Resource extent and provides initial resource assessment and aquifer parameters to confirm pumping lithium brine at production scale is possible.

4

Groundwater flow model simulates long-term production pumping as basis for economic reserve.

5

Evaluation of technologies for on-site brine purification and concentration in combination with evaporation ongoing.

6

Project Summary

  • Salar de Tolillar is located in the Province of Salta, home to many evaporitic basins, or “salars” where important deposits of borates, sodium sulfate, and lithium are concentrated
  • Several explorations have occurred since 2012. Including surface brine sample campaigns (2012), trench brine samples in 2014, shallow borehole samples in 2015, and a VES survey in 2017
  • 2018 exploration & drilling samples from shallow trenches and shallow boreholes, included pumped sampling during drilling operations.
  • Laboratory results from pumping test at DDH_B_01 demonstrate that subsurface brine in the north part of the concession also show enriched lithium concentrations.
  • Lithium concentrations were identified up to 504 mg/L in borehole samples in 2015 study.
  • The results of magnesium to lithium ratios (Mg/Li) are very low for the region, and are favorable for traditional processing treatment.
  • Initial results for lithium & potassium concentrations from surface sampling support a highly favorable production scenario.
  • Drilling licenses approved – ready to commence drill program.
  • The Company is investigating a reliable on – site concentration technology, NOT Li2CO3 or LiOH production technology and if successful, will combine this with existing proven production technologies for enhanced results.

QUALIFIED PERSON

The technical information contained on this website has been approved by Mike Rosko, a Principal and General Manager of Montgomery & Associates, who is a “qualified person” within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects and is an independent consultant of the Company.