Lithium Project

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Atacama Lithium Project
The Company’s Atacama Lithium Project is located in the Salar de Atacama district, recognized as one of the highest grade and largest producing lithium brine regions. The Atacama Salar is host to a significant portion of the world’s known lithium reserves and produces approximately one third of global lithium output from two production facilities operated by Sociedad Quimica y Minera (“SQM”) and Rockwood Lithium (Albemarle). The favourable characteristics of the Salar (high grade lithium and potassium, high evaporation rate, and low rainfall) make Atacama’s lithium production highly efficient versus other producing regions (source: U.S. Geological Survey).

Current production occurs in the southern portion of the Salar. The Company’s Atacama Lithium Project concessions cover an area of approximately 66,000 hectares and are in the southeastern part of the district. The proximity of the Atacama Lithium Project to existing production indicates the exploration potential for the discovery of brines in the eastern and southern portion of the district, underlying portions of the Company’s Atacama Lithium Project.
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Area and Location

The Salar de Atacama is located approximately 220 km east of the northern Chilean city of Antofagasta. The world-famous copper mine Chuiquicamata is situated about 130 km north-northwest of the Salar de Atacama.

The Company’s Atacama Lithium Project concessions cover an area of approximately 66,000 hectares and are in the southeastern part of the district. The proximity of the Atacama Lithium Project to existing production indicates the exploration potential for the discovery of brines in the eastern and southern portion of the district, underlying portions of the Company’s Atacama Lithium Project.

Current production occurs in the southern portion of the Salar where both Soquem Quimica y Mineria de Chile (“Soquem” or “SQM”) and Albermarle operate potassium-lithium operations. Both SQM and Albemarle produce potassium and lithium from brines at depth in the Salar.

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Location

The Salar de Atacama is located approximately 220 km east of the northern Chilean city of Antofagasta. The world-famous copper mine Chuiquicamata is situated about 130 km north-northwest of the Salar de Atacama.

The Company’s Atacama Lithium Project concessions cover an area of approximately 66,000 hectares and are in the southeastern part of the district. The proximity of the Atacama Lithium Project to existing production indicates the exploration potential for the discovery of brines in the eastern and southern portion of the district, underlying portions of the Company’s Atacama Lithium Project.

Current production occurs in the southern portion of the Salar where both Soquem Quimica y Mineria de Chile (“Soquem” or “SQM”) and Albermarle operate potassium-lithium operations. Both SQM and Albemarle produce potassium and lithium from brines at depth in the Salar.

Summary of Atacama Lithium Agreement

Under the terms of the Atacama Lithium Agreement, the Company can earn a 100% interest in the Project through the following cash and share payments:

Atacama Lithium Project

DateUS$ CashShares
On SigningUS$550,000550,000 shares
January 22, 2019US$1,600,0001.6M shares
January 22, 2020US$2,000,0002M shares
January 22, 2021US$2,200,0002.2M shares
January 22, 2022$US$3,000,0003M shares
TOTALUS$9,350,0009,350,000 shares

The Atacama Lithium Project is not subject to underlying royalties. During the option period, the Company will be responsible for maintaining the concessions comprising the Project in good standing. There are no work commitments and all work carried out on the Project will be at the sole discretion of the Company. The Atacama Lithium Agreement is subject to the approval of the TSX Venture Exchange.

The Salar de Atacama is host to more than 15% of the world’s known lithium reserves, and yet exploration and production of lithium has occurred only in the southern portion of the Salar. The proximity of the Company’s Project to existing producers suggests that exploration potential is good for the discovery of brines in portions of the district underlying the Company’s Project. (Figure 1)

The principal origin of lithium in the Salar de Atacama is thought to be the lithium-bearing geothermal waters from the El Tatio Geyser Field, located north of the Salar. The geothermal fluids enter the northern part of the Salar de Atacama via surface and subsurface flow. The chemistry of the Salar brines is very similar to the chemistry of the geothermal fluids of El Tatio, providing evidence that the El Tatio geothermal fluids may be the source of lithium and potassium.

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Qualified Person

Mr. Grant Ewing, P.Geo., is a qualified person as defined by National Instrument 43-101. Mr. Ewing and has reviewed the scientific and technical information that forms the basis of this information and has approved the disclosure herein. Mr. Ewing is not independent of the Company.

EXECUTIVE SUMMARY FROM NI 43-101 REPORT

The Salar de Atacama is host to more than 15% of the world’s known lithium reserves, and yet exploration and production of lithium has occurred only in the southern portion of the Salar. The proximity of the Project to existing producers strongly suggests that exploration potential is good for the discovery of brines in the northern portion of the Salar, underlying the Project.

The principal origin of lithium in the Salar de Atacama is interpreted to be the lithium-bearing geothermal waters from the El Tatio Geyser Field, located north of the salar. The geothermal fluids enter the northern part of the Salar de Atacama via surface and subsurface flow. Further, the chemistry of the salar brines is almost identical to the chemistry of the geothermal fluids of El Tatio, further strengthening the interpretation that the El Tatio geothermal fluids are the source of lithium and potassium in the Salar.

Atacama Salar - LCE
Atacama Salar - LCE
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SALAR COMPARISON

The Atacama Salar is the World’s highest grade and largest producing lithium brine deposit, and currently produces approximately one third of global lithium output from two production facilities operated by Sociedad Quimica y Minera (“SQM”) and Rockwood Lithium. Atacama possesses a very high grade of both lithium (1,840mg/l) and potassium (22,630mg/l), has a high rate of evaporation (3,200 mm per year) and extremely low annual rainfall (15mm average per year). These characteristics make Atacama’s finished lithium carbonate easier and cheaper to produce than its peer group globally. A key factor in lithium production costs is evaporation time and Atacama Salar’s evaporation rate is the highest in the lithium industry.

Lithium 101

The Lithium price per pound has grown over the past 10 years at a Compound Annual Growth Rate of over 4.21%

Global Applications: Major component of Li-ion battery construction (EV), industrial materials, metal alloys and medical uses

By 2025 it is estimated that the market will require an additional 635kt LCE of mine supply to meet demand forecasts (Canaccord Genuity 2017 Report)

Lithium demand is estimated to increase by 230% by 2025 at ~15% CAGR (Canaccord Genuity 2017 Report)

2300 – 1177
West Hastings Street.
Vancouver, British Columbia
Canada V6E 2K3
604.484.1232

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2300 – 1177 West Hastings Street
Vancouver, British Columbia
Canada V6E 2K3