LSC Lithium Announces High Grade and High Yield Pump Test Results on Its Pozuelos-Pastos Grandes Project

TORONTO, June 06, 2018 (GLOBE NEWSWIRE) -- LSC Lithium Corp. (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce that it has received very encouraging pump test results which form part of the advanced project development work being conducted on the Pozuelos section of its Pozuelos-Pastos Grandes Project (“PPG Project”).

HIGHLIGHTS

• Constant pump rate achieved at 40m³/hr in well SP-2017-10W
• Average grade of 731mg/l Li achieved over a 48 hour period in well SP-2017-10W
• Confirmation of high porosity and brine yield in clastic sediments in southwest quadrant
• The Pozuelos high grade nucleus area is extended to the southwest of the Salar
• Intermediate halite zones in wells SP-2017-02W and SP-2017-14W continue to demonstrate productive well capability with consistent brine grades
• Complementary brine chemistry between Pozuelos and Pastos Grandes provides process optimization opportunities
• Work on PEA/PFS on PPG Project rapidly advancing with completion of PEA expected in Q4/2018

LSC’s President and CEO Ian Stalker, noted, “We are delighted with this second set of pump test results on the Project as they indicate sustainable pumping rates with higher grades than indicated on our earlier NI 43-101 Resource Statement. The on-going exploration program on site remains on track to deliver the upgraded NI 43-101 Mineral Resource on the Pozuelos section and the maiden NI 43-101 Mineral Resource on the Pastos Grandes section of the Project later this year. It is also pleasing to note the development phase of the PPG Project is now under way with the Preliminary Economic Assessment due to be completed by the end of this year.”

Pozuelos Section – Pump Test Results

This pump test program was completed over a ten day period commencing March 20, 2018 and included pump test wells: SP-2017-02W, SP-2017-10W and SP-2017-14W (see Table 1). Wells were placed in close proximity (~<10m) to the comparable diamond drill hole to enable comparison of well performance versus lithology. The wells were subject to step tests designed to stress the aquifer and establish a suitable pumping rate and then a constant rate pump test over a 48 hour period. All test wells recorded very short recovery periods. All holes were cased off with blind and screen casing where required and the casing/hole side wall annuli were gravel packed for the entire length of each hole. Two piezometer holes were drilled on a 90 degree pattern at approximately 5m and 10m from each pump test hole and cased off with 4” screen casing. A submersible pump was utilized with a maximum pump rate of 45m³/hr. Brine testing was completed on an hourly basis throughout the pump test period to establish the possible variability of the brine chemistry throughout the test period.

Well SP-2017-02W is located in the northwest quadrant of the salar. The well was drilled utilizing a tricone system to 68m at a diameter of 12”. The well was cased with steel screen casing from 11m to 66.5m at 8” to test the halite horizon. The static level of brine in the pump well recorded was 0.135m while the levels in the piezometers were recorded at 0.34m in the Pz5m hole and 0.83cm in the Pz10m. The steady state pumping rate achieved for the 48 hour pump period was 28m³ /hr with a corresponding average draw down 28.94m. The dynamic levels recorded in the piezometer holes for SPz5 and SPz10 were 3.15m and 1m respectively. The average lithium grade recorded for the 48 hours was 388mg/l Li.

Well SP-2017-10W is located in the southwest quadrant of the salar. The well was drilled utilizing a tricone system to 100m at a diameter of 12”. The well was cased with steel screen casing from 63m to 99m at 8” to test the clastic horizon developed from 66.6m to the end of hole. The static level of brine in the pump well recorded was 1.51m while the levels in the piezometers were recorded at 1.20m in the Pz5m hole and 0.18m in the Pz10m. The steady state pumping rate achieved for the 48 hour pump test period was 40m³/hr with a corresponding average draw down ~7.80m. The dynamic levels recorded in the piezometer holes for SPz5 and SPz10 were 7.20m and 2.06m respectively. The average lithium grade recorded for the 48 hours was 731mg/l Li.

Well SP-2017-14W is located in the southeast quadrant of the salar. It was drilled utilizing a tricone system to 52m at a diameter of 12”. The well was cased with steel screen casing from 9m to 51m at 8” to test the halite horizon. The static level of brine in the pump well recorded was 1.05m while the levels in the piezometers were recorded at 1m in the Pz5m hole and 0.96cm in the Pz10m. The steady state pumping rate achieved for the 48 hour pump period was 19.5m³/hr with a corresponding average draw down 19.9m. The dynamic levels recorded in the piezometer holes for SPz5 and SPz10 were 1.76m and 1.02m respectively. The average lithium grade recorded for the 48 hours was 358mg/l Li.

In all cases, the balance of the brine assays for each well were consistent with previously reported results (see LSC NI 43-101 on Salar de Pozuelos filed on SEDAR) and show favourable chemistry for lithium extraction.

The pump tests results confirm the data developed from prior pump tests as detailed in LSC’s 2018 NI 43-101 report on Pozuelos. The pump data confirm the potential for good rate of brine production from the intermediate halite zones and the potential for high rates of brine production from the underlying clastic zone in the southwest portion of the salar. Additional pump tests in other locations are in process to develop data to evaluate hydrogeological properties across the lateral extent and depth of the salar.

LSC has completed the engineering company selection process, and the lead engineers for the PEA and subsequent studies will be announced shortly. The PEA on the PPG Project is expected to be completed in Q4 2018, followed by a PFS in mid-2019. The studies will focus on leveraging the promising results from these pump tests by pursuing selective extraction of the resource and optimizing the feed grade to the evaporation ponds.

Quality Assurance/Quality Control

Brine samples were collected in 1 litre sample bottles, sealed and transported daily to the assay laboratory. Sample data for collection date and time, sample number, pumping rate and other factors were recorded in the data base. Sample assays were undertaken at Alex Stewart Argentina (“ASA”) in Jujuy, Argentina using ICP, gravimetric, potentiometric and volumetric methods as detailed in a press release from LSC dated April 10, 2017. ASA is independent of LSC and has significant experience in assaying lithium brine and is certified to ISO 17025 and ISO 9001 standards for quality control and quality assurance.

LSC has a well developed program of QA/QC. Certified standards are inserted in sample batches at a rate of at least 1 in 20, sample duplicates are run at a rate of at least 1 in 20. Blanks are inserted at a rate of at least 1 in 20 samples. LSC uses distilled water for blanks. ALS Global or SGS Argentina are used as secondary check laboratories to monitor primary laboratory results. Both ALS Global and SGS Argentina are certified to ISO 17025 and ISO 9001 standards and are independent of LSC.

Qualified Person

This press release is based upon information prepared and approved by Donald H. Hains, P.Geo. Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC. Mr. Hains has verified all sampling, analytical and test data underlying the information contained in this press release by on-site inspection during drilling, brine sampling; review of drill core photographs to verify lithology; review of certified assay certificates against the assay data base; review of pump test data. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

ABOUT LSC Lithium Corp.:

LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its material projects: Pozuelos and Pastos Grandes Project, Salar de Rio Grande and Salar de Salinas Grandes. All LSC tenements are located in the “Lithium Triangle,” an area at the intersection of Argentina, Bolivia, and Chile where the world’s most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.

For further information please contact:

LSC Lithium Corp.
Ian Stalker, President & Chief Executive Officer
40 University Avenue, Suite 605
Toronto, ON Canada M5J 1T1
+416 306 8382
Email: info@lsclithium.com
Web: lsclithium.com

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the timing and expected completion of delivering a PEA and PFS for the PPG Project, results and use of data from the pump test work on Pozuelos, ability, timing and successful completion of the drill program and seismic survey at the PPG Project, timing and likelihood of relocating accommodation to Pozuelos, timing of completing engineering work on the PPG Project, LSC’s overall contained lithium inventory, and ability to produce more results on the Company’s properties. The use of any of the words “could”, “anticipate”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to: title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on the LSC properties; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC’s share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information, see the Company's filing statement on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange Inc. 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 neither approved nor disapproved the contents of this press release.