Lithium Ionic Corp. [TSXV-LTH; OTCQX-LTHCF; FSE-H3N] reported new assay results for 16 drill holes from its feasibility-stage Bandeira lithium project, situated in northern Minas Gerais state, Brazil, in a world-class hard-rock lithium district known as the Lithium Valley, where two lithium producers currently operate.
These results were completed as part of the 50,000-metre drill program completed in H2 2023 at its Itinga and Salinas group of properties. Drilling is ongoing at Bandeira, as well as other high priority regional targets as part of an expanded ~50,000-metre drill program planned for 2024.
An updated NI 43-101 mineral resource estimate for Bandeira, which will capture drill data beyond the August 2023 cut-off from the mineral resource estimate announced on October 19, 2023, is currently underway as part a Feasibility Study, which is on track for completion this quarter.
Significant drill intercepts from the most recent Bandeira results, include 1.31% Li2O over 24.0 metres, including 1.86% Li2O over 6.0 metres and 1.67% Li2O over 10.0 metres; intersected from ~100 metres down hole (hole ITDD-23-228); 2.12% Li2O over 7.2 metres and 1.53% Li2O over 8.0 metres (hole ITDD-23-226); 1.96% Li2O over 5.9 metres and 1.73% Li2O over 6.0 metres (hole ITDD-23-224); 1.33% Li2O over 10.4 metres, including 1.65% Li2O over 8.0 metres, intersected from ~44 metres down hole (hole ITDD-23-243); 1.35% Li2O over 7.3 metres (hole ITDD-23-232); 1.81% Li2O over 5.0 metres (hole ITDD-23-210) and 1.65% Li2O over 5.5 metres (hole ITDD-23-230).
Blake Hylands, P.Geo., CEO, commented, “Results from Bandeira continue to impress us with consistently high grades over meaningful widths. Our drilling efforts at Bandeira are primarily focused on expanding and upgrading the deposit, however geotechnical and condemnation drilling are also underway in preparation for mine development. We look forward to delivering some significant milestones in the near-term, including a Feasibility Study for Bandeira as well as an initial mineral resource estimate at our Salinas Project.”
Bandeira is a 175-hectare property, currently representing around 90% of the company’s total resource tonnage but only ~1% of the company’s 14,182-hectare land package. The property hosts a NI 43-101 compliant mineral resource estimate (MRE) of 13.72Mt grading 1.40% Li2O (474,892t LCE) in the Measured and Indicated category, in addition to 15.79Mt grading 1.34% Li2O (523,118t LCE) in the Inferred category, which formed the basis of a Preliminary Economic Assessment (PEA) that supported a long-life and low-cost spodumene concentrate mining project with a post-tax Net Present Value (NPV) 8% of US$1.6 billion (~C$2.2 billion) and an Internal Rate of Return (IRR) of 121%.
The company is rapidly advancing Bandeira towards a production decision, while it continues to define and grow lithium mineralization at other regional targets. A NI 43-101 compliant Feasibility Study (FS) for Bandeira, including an updated MRE, is progressing well and on track for completion this quarter. On November 21, 2023, the Company submitted its application for a Concomitant Environmental and Installation License (LAC, or Licenca Ambiental Concomitante in Portuguese) to the State of Minas Gerais, who have recognized its properties as “priority projects”. The LAC approval, anticipated in mid-2024, would result in the environmental and social license together with an authorization to begin construction.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its Itinga and Salinas group of properties cover 14,182 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.
