VANCOUVER, BC, March 17, 2022 /CNW/ -- Lithium South Development Corporation (the "Company") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce finalization of the Environmental Baseline Study for the Hombre Muerto North Lithium Project (HMN Li Project), Salta, Argentina.
E&C Consultores of Salta have been completing the final in field survey, collecting data on the Flora, Fauna, hydrology, and climate in areas of project influence during the rainy season. The final results are being prepared under the General Environmental Law of the Mining Code 24.585 and are expected to be tabulated by the end of March, for filing with the Mining Authority.
Completion of the Environmental Baseline Study is an important milestone for the development of the HMN Li Project as it will form the base data to prepare the final Environmental Report for any future lithium production facility. Work to date has covered all 3,287 hectares comprising the salar portion of the project. Finalization of the Environmental Report will provide a key part in the completion of a Feasibility Study.
A 2,000-meter drill program is being scheduled for the Alba Sabrina claim block to potentially expand the total current project resource. Other claim blocks within the package may also be drilled in the future. Process test work utilizing both conventional evaporation and Direct Lithium Extraction technology is also nearing completion, with results expected shortly
Property Transfer Update
Pursuant to the third addendum to the Acquisition Agreement for the HMN Lithium Project, a final tranche of 500,000 common shares has been issued to the property vendor(s), Jorge E. Moreno and Alba Silvia Sala, at a deemed price of CDN$0.55. The property title is now in the transfer process and expected to conclude in the coming days with the Company obtaining 100% ownership of the HMN Li Project, subject to a 3% production royalty to the vendors.
About Lithium South
Lithium South is focused on developing the Hombre Muerto North Lithium Project, located on the Hombre Muerto Salar, a major lithium-producing salar in Argentina. The property is adjacent to a US$840 million lithium mine development being undertaken by the Korean multinational corporation POSCO, which acquired the raw ground from Galaxy Resources Ltd. for US$280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, utilizing conventional evaporation extraction.
The Company is evaluating conventional evaporation as a process method, and Direct Lithium Extraction (DLE) as an alternative method. Three candidates for DLE are currently being evaluated. Two, 2,000-liter bulk brine samples are being evaluated outside of Argentina. One sample is being tested by Lilac Solutions of Oakland, California. A second 2,000-liter bulk sample is being tested by Chemphys Chengdu, in China. DLE test work is also currently underway in Salta, Argentina by Eon Minerals.
On behalf of the Board of Directors
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. We seek safe harbor.
SOURCE Lithium South Development Corporation
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