PRESS RELEASE
February
2, 2017
VANCOUVER,
Canada -- Southern
Lithium Corp. (TSX-V: SNL FSE: SL5)
("Southern"
or "the Company") is pleased to provide an update for the lithium exploration program announced (December 6, 2016), to be executed at its Cruz Property (the "Property"), located in Salta
Province, Argentina.
The Company is waiting for
the review process of the previously submitted application to be completed and the
issuance of the permit to drill the property in first quarter of 2017. While
waiting for the permit to be issued, the Company has initiated a geophysical
survey that will enable the Company to delineate bodies of brine and identify
drill targets.
The Phase I lithium brine exploration
program will consist of drilling one core hole at two separate locations in the
salar to establish stratigraphic and porosity data, and for brine extraction
and evaporation trials. At both sites, an HQ core hole will test the salar to a
depth of 350m, or deeper if warranted to ensure that any brine bodies
identified by the geophysical survey in the salar basin are sampled. In the
deeper parts of some salar basins, coarse sediments that were deposited early
during the filling of the basins have the potential to be excellent brine
aquifers.
During the drilling,
samples for chemical analysis will be collected using a drive point system,
which employs an in-situ sampling tool to collect brine samples from discrete
vertical intervals. The brine will be tested on-site to determine density,
conductivity and pH. Chemical analysis will be will be completed at a
specialized, certified laboratory.
After drilling the core
holes, down-hole geophysics will be used to target potentially productive
zones. Subsequently, each hole will be cleaned and fitted with slotted casing
and a gravel filter for possible future
use as a monitoring well if results indicate that an adjacent pumping test well
be drilled.
The program will be
managed on the ground in Argentina through its joint venture partner Millennial
Lithium Corp. Millennial has engaged HIDROTEC S.R.L., a Salta-based drilling
company with extensive recent experience in drilling and testing salar-hosted
lithium brines, to complete the Phase I drilling program. Millennial has
engaged Mike Rosko of Montgomery and Associates, Inc. a US-based
hydrogeological consultancy to provide program guidance and act as the
Company's qualified person for reporting results.
About the Cruz Property
Through its joint venture partner Millennial
Lithium Corp. (TSX-V: ML) (OTCQB: MLNLF), the Company has executed a formal
option agreement with Proyecto Pastos Grandes S.A. (“PPG SA”), a wholly owned
subsidiary of Millennial, to be granted an option to acquire an eighty percent
(80%) interest in the PPG SA’s Cruz Property in the Pocitos Salar Basin in
Salta Province, Argentina.
The Cruz Property is located in the heart of
South America’s Lithium Triangle (northern Chile, northwestern Argentina and southwest
Bolivia). The property encompasses 2,500 hectares in the Pocitos salar basin in
Salta Province, Argentina, and lies 11 kilometers south of ADY Resources
Limited’s lithium brine resource in the Salar del Rincón Basin.
The Cruz property is adjacent to the Rincon volcanic center that defines the southern limit of
the Rincon salar basin, where ADY Resources Limited is extracting lithium
brine, and the northern limit of the Pocitos salar basin, where the Cruz
property is located. Both properties lie along the structural belt that hosts
the important lithium resources of the region, and at the junction of a large
north-south fault system and the northwest-southeast megastructure along which
lies the Rincon volcano, the possible source of the lithium brine in both salar basins.
The 60-kilometer long Pocitos salar basin has
previously only been drill tested with a shallow 12-hole program in the 1970s,
by an Argentinean government agency “Direccion General de Fabricaciones
Militares”. To date, this is the only confirmed exploration drilling conducted
in the Pocitos basin. The hole that produced the best results is near the
southeast edge of the Cruz property boundary, and averaged 417 parts per
million; note that these results are considered historical and cannot be
confirmed under NI 43-101 standards.
About Southern Lithium
Corp (TSX-V: SNL FSE: SL5)
Southern Lithium Corp. is
a resource exploration company engaged in the business of acquiring and
exploring minerals properties. Southern Lithium Corp. has assembled an
experienced management team with a growth strategy to develop portfolio of
Lithium projects. The Company's main objective is to add shareholder value
through exploration and development of high quality resources through strategic
acquisitions, joint ventures, and marketing while maintaining a lower risk
profile through project diversification and sound, cost-effective financial
management. With the potential acquisition of the Cruz property, Southern
Lithium intends to establish its presence in the Pocitos basin and further
deliver on its mission to secure technically superior lithium projects. The
Company is only focusing on projects of the highest technical merit in
favorable geopolitical jurisdictions.
Qualified Persons
The scientific and technical
information contained in this news release has been reviewed and approved by Larry Segerstrom, M.Sc. (Geology),
P.Geo., a
Director of the Company, who is a "Qualified Person" as such term is
defined under National Instrument 43-101 - Standards
of Disclosure for Mineral Projects ("NI 43-101").
Further
information about the Company is available on our website at www.southernlithium.com
or under our profile on SEDAR at www.sedar.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
“David
Alexander”
Chief Financial Officer
For
further information, please contact:
Southern Lithium Corp.
Sam Eskandari
Phone: +1.416.918.6785
Email: ir@southernlithium.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.
This news release includes forward-looking
statements that are subject to risks and uncertainties. All statements within
it, other than statements of historical fact, are to be considered forward
looking. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements
are not guarantees of future performance and actual results or developments may
differ materially from those in forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes,
continued availability of capital and financing, and general economic, market
or business conditions. There can be no assurances that such statements will
prove accurate and, therefore, readers are advised to rely on their own
evaluation of such uncertainties. We do not assume any obligation to update any
forward-looking statements, other than as required pursuant to applicable
securities laws.
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