PRESS RELEASE
February 21, 2017
VANCOUVER, Canada – – Southern Lithium
Corp. (TSX-V: SNL FSE: SL5) ("Southern"
or "the Company") is pleased to announce that we have been informed by Millennial Lithium Corp. (the “Optionor”), that it
has received favorable results from a recently completed ground geophysics
program that was previously announced (February 2, 2017) at its Cruz Property (the "Property"), located in the
Pocitos salar basin in Salta Province, Argentina.
In early February, the
companies completed a Transient Electromagnetic Survey (“TEM”) survey that was carried
out by Quantec Geoscience Argentina S.A., (“Quantec”) of Mendoza, Argentina.
The TEM covered a total of 16 points covering 20.25 square kilometres, on a
4500 metre-by 4500 metre (m) grid, at 1500 meters spacing.
The TEM results show a
continuous north-south trending conductive unit over a distance of more than 6
kilometres. In comparison to other salar
basins in the region, highly conductive readings generally indicate a high
content of brine. Salar brines in the
“Lithium Triangle” of Argentina, Bolivia and Chile typically contain high
levels of lithium.
The spacing of the survey
points leads to an interpretation of conjoined oval-shaped areas underlain by
brine. The overall basin however is shaped by strong north-south and northwest
southeast faulting. Highly conductive readings have generally been found to
indicate a high content of lithium brine in most other salar basins in the
area.
In the central core of the
property the indications of brine appear as shallow as 30 metres, below a
compact near surface halite layer and to a depth of 250 metres. Due to the highly conductive nature of the
anomaly, survey readings were limited to a maximum 250 metres.
The results of the
geophysics survey are interpreted to be very positive, suggesting a large area
of brine at shallow depths and extending to over 250 metres of depth. A 2-hole
drilling program is planned to commence on approval of the addendum to the
existing exploration environmental impact report, anticipated in March.
Company CEO Clive Massey
states: “We are extremely encouraged with the results of the geophysics and we
are pleased with the level of participation investors have shown in the
recently announced Private Placement. This financing will be another
significant step forward for Southern as it continues to build shareholder value
and execute on raising the funding necessary to accelerate the advancement of
the exploration efforts at the Cruz Property in Argentina."
Millennial’s COO Iain
Scarr states: “The results of the geophysics program thus far appears to
confirm our assertion that the Pocitos basin is highly likely to host significant
quantities of lithium brine. Its proximity to other large resources, the
structural setting, and known chemical indicators are reinforced by these
results in justifying and targeting exploration drilling. We are very
encouraged by this program, and are grateful to Quantec Argentina for their
quality work and thoughtful interpretation. Our plan now is to commence the
drilling program as soon as permitting allows. We look forward to reporting
further results.”
About
Quantec
Quantec Geoscience is a
geophysical survey company specializing in ground-based electrical and EM
surveys. Quantec offers a full turnkey solution to customers – from project
planning all the way to final interpretation. Quantec has been a geophysical
survey acquisition company, and it prides itself for the quality of their field
work. The 5,000+ and counting surveys conducted by Quantec have been located in
basically any and every type of environment found on the planet.
About
TEM
TEM uses electromagnetic impulse
excitation to investigate the subsurface. It is a variation of the
electromagnetic method in which electric and magnetic fields are induced by
transient pulses of electrical current in coils or antennas instead of by
continuous current. TEM surveys have become the most popular surface EM
technique used in exploration for minerals and groundwater and for
environmental mapping. Ohm is the unit of measurement of electrical resistance
in a material. One ohm is the resistance in a circuit when one volt maintains a
current of one amp.
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”).
The exploration program is
being managed by Iain Scarr, Millennial Lithium Corp., Chief Operating Officer,
and a Qualified Person as defined by NI 43-101. Mr. Scarr is Certified
Professional Geologist (CPG) with the American Institute of Professional
Geologists.
Southern
Private Placement
As previously announced on
February 7, 2017, the Company announced a
non-brokered private placement of 4,000,000 units (each “Unit“) at a purchase price of
$0.25 per Unit, for gross proceeds of up to $1,000,000. Each Unit will consist
of one (1) common share (“Common Share“) of the Company and one
(1) non-transferable share purchase warrant (“Warrant“).
Each Warrant will entitle
the holder to acquire one (1) Common Share at an exercise price of $0.35 for a
period of 18 months from the closing date of the Private Placement. In the
event that the Company’s common shares trade at a closing price greater than
$0.50 per share for a period of 10 consecutive trading days at any time after
the closing date, the Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof and in such case the Warrants will expire
on the 30th day after the date hereafter referred to as the (“Forced
Conversion Feature“) on which such notice is given by the Company.
The private placement is
subject to TSX Venture Exchange approval. There will be a hold period of four
months and one day on all securities issued under this financing.
About
the Cruz Property
Through its partner Millennial Lithium Corp.,
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 kilometres 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-kilometre 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.
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
“Clive H.
Massey”
Chief Executive 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.
(Cautionary statement: At this stage there has been
insufficient exploration completed such that a mineral resource may be calculated.
The potential quantity and grade can only be established with further work,
including sampling, which the Company is initiating shortly. It is currently
not known if this additional work will result in identifying a mineral
resource.)
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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