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Neo Lithium Announces Results of New Drill Hole and Long-Term Pump Test in the High-grade Zone of the 3Q Project

  • The new drill hole in the high-grade zone yielded 137.6m with 1,128 mg/l Li extending the high-grade zone depth from 100m to 160m
  • Long-term pump test at 80 m3/h for 20 days provided stable lithium production

TORONTO, April 08, 2019 (GLOBE NEWSWIRE) -- Neo Lithium Corp. (“Neo Lithium” or the “Company”) (TSXV: NLC; OTCQX: NTTHF; FSE: NE2)  is pleased to announce that Hidrotec SA completed Drill Hole PP25-R-1 down to 167 metres and a long-term pump test has been completed in its wholly-owned Tres Quebradas lithium brine project ("3Q Project") in Catamarca Province, Argentina.

Drill hole PB1-R-24 is located in the high-grade zone of the 3Q Project. The rocks found in the hole are porous halite, sands and gravels from the surface to the bottom of the hole. The hole was stopped at 160 metres depth due to technical difficulties drilling loose gravel. The hole was finished with 8 inches diameter PVC filters from 16 metres all the way to the bottom of the well. Sampling was done with a pumping rate of 11 m3/h and 5 brine samples were collected during 6 hours of pumping. The average lithium grade of the 137.6 meters that were pumped was 1,128 mg/l Li. The Magnesium/Lithium ratio is 1.6 and the Sulfate/Lithium is 0.18. The location of the drill hole is available on the Company’s web site at: http://www.neolithium.ca/project/default.aspx#section=maps

"The high-grade zone in the northern end of the 3Q project has been drilled in the past down to only 100 metres with PB-R-18. Results of the new hole, PB-1-R24 extends the high-grade zone down to 160 metres," said Waldo Perez, President and CEO of Neo Lithium. "We will continue our efforts to extend the resource of the high-grade zone at depth in order to hopefully increase high grade reserves at the final feasibility stage."

The Company has completed a total of 22 pump tests along the salar in different stratigraphic units. All tests were conducted for 72 hours. The Company decided to run a long-term pump test to validate this data on longer periods of pumping. The long-term pump test was completed on platform PB1-R-4 located in the southern part of the high-grade zone. This well was 8 inches with PVC filters from 5 to 70 meters. The test was done using a 15 horsepower, 6-inch, submersible electric pump and a diamond drill hole as a monitoring well. PB1-R-4 was tested in 2018 in a 72 hours pump test and this season it was tested in a 20-day long pump test. The pumping was 80 m3/h, the maximum draw down was 1.9 metres at the head of the pump and 10 cm in the piezometer located 10 metres away from the pumping well.

The pump test provided a Specific Yield (equivalent to drainable porosity) of approximately 10%, consistent with the Hydrogeological model of the prefeasibility study (“PFS”) announced on a press release March 21, 2019. The test also demonstrates that the hydraulic parameters of the aquifer in this zone are consistent with the requirements of the PFS of productivities around 50-60 l/s per well.

Brine geochemical samples were collected daily, resulting in 20 samples being cataloged in total. The grade of day one was 773 mg/l Lithium and the grade on day 20 was 787 mg/l of Lithium. The subtle increase in grade during the entire test, demonstrated no decay in grade in any sample.

"These long-term pump test results validate our extensive pump tests database," added Waldo Perez. "This salar has a very high productivity and only 5 wells are required for the full production of 20,000 LCE described in the prefeasibility study."

Technical Information

The brine samples collected in the field were delivered by Company personnel to Andesmar Transport Company ("Andesmar") in La Rioja, in the province of Rioja. Andesmar delivered the samples by truck to ASL, an ISO 9001-2008-certified laboratory in Mendoza, Argentina. ASL used the following analytical methodologies: ICP-OES (inductively-coupled plasma-optical (atomic) emission spectrometry) to quantify boron, barium, calcium, lithium, magnesium, manganese, and potassium; an argentometric method to assay for chloride; a gravimetric method to analyze for sulfate; a volumetric analysis (acid/base titration) for the evaluation of alkalinity (as CaCO3); a gravimetric method to determine density and total dissolved solids; and, a laboratory pH meter to determine pH. All analytical work is subject to a systematic and rigorous Quality Assurance-Quality Control. A reference ("standard") sample was inserted into the sample stream at a frequency of approximately 1 in 15 samples; a field blank was inserted at a frequency of approximately 1 in 15 samples; and a field duplicate sample was inserted at a frequency of approximately 1 in 15 samples.

Waldo Perez, Ph.D, P.Geo., the CEO and President of Neo Lithium Corp. is the Qualified Person who approved the scientific and technical disclosure in the news release.

About Neo Lithium Corp.

Neo Lithium has quickly become a prominent new name in lithium brine exploration by virtue of its high quality 3Q Project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its recently discovered 3Q Project - a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.

Neo Lithium has delivered strong results in its most recent prefeasibility study which is based on a large and high grade lithium brine reserve. The technical team that discovered the 3Q Project is characterized as one of the most experienced in lithium salars.

The 3Q Project is located in the Province of Catamarca, the largest lithium producing area in Argentina and covers approximately 35,000 ha.

Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.

For further information, please contact:

Neo Lithium Corp.
Carlos Vicens
cvicens@neolithium.ca

Neither 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. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.

Cautionary Note Regarding Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to lithium brine grades at depth being consistent with surface results, the potential for resource expansion at depth, the potential of the northern salar sediments, and deeper sediments, for hosting brine, the ability to proceed to scoping studies quickly, proceeding with continued work for additional economic studies the potential for production expansion in the Company’s assessment of the economic potential of the 3Q Project, that test results are indicative of future results, and the additional of additional independent directors. Generally, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, ”should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, competition for experienced directors in the junior mineral exploration and development sector, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company’s disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.