• Wednesday, 27 March 2019

Advantage Lithium Corp.: Cauchari JV Update - Finalization of Phase III program

VANCOUVER: Advantage Lithium Corp. (the Company or Advantage Lithium) (TSX Venture: AAL) (OTCQX: AVLIF) is pleased to provide this update on the completion of drilling and pumping test activities at the Cauchari JV property located in Jujuy Province, Argentina.

Phase III infill drilling and resource conversion program completed at the end of 2018 with 26 holes drilled in Phase II and III. An updated resource estimate in Q1 2019 is expected to bring resources into the Measured and Indicated categories.
Drilling in the Deep Sand Unit at CAU26 and deeper drilling on the CAU12 and CAU13 platforms confirms a significant expansion in the unit thickness. CAU12 has intersected more than 249 m of sand dominated material. Drilling has also expanded the aerial extent of the unit. The Deep Sand remains open at depth, where holes were terminated in sand and interbedded sand units.
Brine analyses from CAU19 in the SE Sector averaged 611 mg/l Li and 4,483 mg/l K in the Deep Sand beneath the upper sequence of evaporites and finer grained sediments which averaged 427 mg/l Li. Brine sample results are awaited from holes CAU26, CAU12 and CAU13.
The CAU11 30 day constant-rate pumping test was completed on November 24. The test was carried out at an average pumping rate of 18.4 l/s with the lower part of the well screened in the Deep Sand unit. Brine samples collected during the pumping test indicate that lithium and potassium concentrations remained constant throughout the test and averaged 512 mg/l Li and 4,735 mg/l K.
The CAU07 30 day constant rate pumping test is continuing in the NW Sector of the Project at a rate of 22 l/s. Brine results from the first 7 days average 647 mg/l Li and 4,980 mg/l K with Mg/Li of 2.2:1, with final results expected around the end of January.

President & CEO Mr. David Sidoo commented: We are very pleased to wrap up the Phase III drilling program at Cauchari as we progress to the Feasibility Study engineering for the project. The Phase III program has successfully extended the footprint of the resource area to the south and at depth with drilling of the deepest holes in the Cauchari basin. Updating the resource estimate is expected to bring resources into the Measured and Indicated categories in 1Q 2019.

The definition of reserves for the Feasibility Study will follow the updated resource and will incorporate information from recent pumping tests. The second of our 30 day pumping tests will be completed in mid-January, with this test underway at 22 l/s, following the first test completed at 18.4 l/s - both excellent outcomes for the company. We look forward to updating you on advances with project engineering, process optimization and permitting during 2019 as we progress with project execution.

Drilling Update

The Phase III drilling program has been completed with some of the deepest holes drilled in the Cauchari-Olaroz basin to date, reaching a maximum depth of 617 m in CAU26, with the Deep Sand unit present at the end of the hole. Drill hole CAU19 (Figure 5) was completed in the southwest of the SE Sector to a depth of 519.5 m. This hole intersected the Deep Sand unit from 434 m to 519.5 m (a thickness of >86 m), with sand continuing at the end of the hole. This extent of the Deep Sand is further defined by intersections in drill holes CAU11, CAU12, CAU13 and CAU26. In CAU12 the Deep Sand unit extends over more than 249 m vertically, beginning at 360 m below surface and continuing to the end of the hole at 609 m.

Brine samples from CAU19 in the Deep Sand unit averaged 611 mg/l Li, and 4,483 mg/l K with a Mg/Li ratio of 2.1:1, while the lithium concentration in the overlying evaporite and clay sequence averaged 427 mg/l over a 300 m interval. Confirmation of the considerable thickness of the Deep Sand unit and the elevated brine concentration in the sand unit in CAU19 is an excellent result. Analyses are awaited from sampling of the Deep Sand Unit in holes CAU12, CAU13 and CAU26. Drilling has further confirmed the positive characteristics of the Deep Sand unit in terms of both porosity and permeability for future extraction.

Hole CAU25 was drilled in the north of the SE Sector, to the north of CAU22. CAU25 intersected a sequence of clay, halite and interbedded fine sand units to a depth of 427 m. Brine sampling of the hole returned an average concentration of 497 mg/l Li and 4,045 mg/l K from 169 m to 345 m depth with a low Mg/Li ratio of 2.6:1.

CAU26 was located in the southern portion of the SE Sector (Figure 5) and successfully intersected the westward extension of the Deep Sand unit. Results of CAU26 brine analyses are awaited.

Drill holes CAU12 and CAU13 were deepened to determine the thickness of the Deep Sand unit, as previous drilling at these sites only intersected the upper part of this unit. This new drilling has confirmed a thickness greater than 249 m in CAU12, and a thickness of greater than 100 m in CAU13 with both holes terminated in the sand. The Deep Sand unit appears to have favourable porosity and permeability characteristics (Figure 3). Core samples are currently being analysed for drainable porosity and other physical parameters in the GSA laboratory in the US. The Deep Sand unit appears to constitute an important source for future brine production in addition to the sands and gravels of the NW Sector of the Project. The interpretation of the Deep Sand unit is depicted in Figure 4, which illustrates the vertical extent of the unit and continuity between drill holes.

Pumping Tests

The 30 day constant rate pumping test has been completed on test production well CAU11 in the SE Sector (Figure 1). The test was performed at a pumping rate of 18.4 l/s with a constant drawdown of 25 m in the pumping well. Water levels were also measured in a network of surrounding observation wells completed to different depths relative to the Deep Sand unit. Brine concentrations were monitored throughout the test. The brine concentration averaged 512 mg/l Li and 4,735 mg/l K throughout the test with a Mg/Li ratio of 2.6:1, confirming the result of the 48 hour pumping test announced in February 2018.

The 30 day constant rate pumping test in CAU07 is underway in the NW Sector (Figure 2) and will be completed in mid-January. The pumping test is carried out at a rate of 22 l/s with a drawdown of 40 m. Assays received for the first 7 days of the test averaged 647 mg/l Li and 4,980 mg/l K, with a Mg/Li ratio of 2.2:1. The CAU07 pumping rate is limited by well construction constraints and higher pumping rates are expected in future production wells based on the observed aquifer conditions. Brine samples are collected at regular intervals during the test and complete analyses will be available around the end of January 2019.

The tests provide additional information on aquifer characteristics as an input to the three-dimensional groundwater model that is being developed to estimate lithium reserves and to develop a production schedule for the project. The pumping tests also confirm the minimum pumping rate to be expected for production pumping wells, in line with the company's previous expectations.

Gas Supply

The company is advancing with the engineering assessment for future gas supply to the Project.

Cauchari Project - EIA Submission

The Project EIA and baseline monitoring reports for the proposed 20 ktpa lithium carbonate facility were submitted to Jujuy government Authorities on 22 December. Prior to its submission, Advantage was in a continuous consultation process with local communities and presented the proposed development plans to these stakeholders during November and December, as required by the relevant Argentine laws.

Following review and feedback from communities we expect to receive approvals to proceed (to the engineering construction phase) by end Q2 2019.

*Note that CAU26 was drilled in a revised location compared to that shown in previous announcements

The technical information in this news release has been reviewed and approved on behalf of the company by Mr Frits Reidel a Certified Professional Geologist and member of the American Institute of Professional Geologists, a Qualified Person as defined in NI 43-101.

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Advantage Lithium Corp.: Cauchari JV Update - Finalization of Phase III program

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