Lithium Ionic Corp. [TSXV-LTH; OTCQX-LTHCF; FSE-H3N] reported assay results for 15 drill holes from its Feasibility-stage Bandeira Lithium Project in northern Minas Gerais State, Brazil, in the lithium-rich Aracuai Pegmatite District, also known as the Lithium Valley, where two lithium producers currently operate.
The company recently completed the planned 50,000-metre drill program it had set out for H2 2023 at its Itinga and Salinas group of properties, however drilling is ongoing at select targets, including Bandeira, focusing on expanding and upgrading existing mineral resources in advance of a Feasibility Study, on track for completion in early 2024.
Significant drill intercepts from the most recent Bandeira results, include 1.72% Li2O over 53.7 metres, including 1.87% Li2O over 39.5 metres and 1.61% Li2O over 11.2 metres, intersected approximately 100 metres below surface, represents the widest and highest-grade lithium drill intercept returned to date among the company’s entire portfolio of properties. (hole ITDD-23-221); 1.65% Li2O over 16.2m (hole ITDD-23-218); 1.78% Li2O over 8.7m, including 2.44% Li2O over 5.1m (hole ITDD-23-215); 1.50% Li2O over 9.4m and 1.40% Li2O over 6.5m (hole ITDD-23-192); 1.59% Li2O over 8.6m (hole ITDD-23-216); and 2.19% Li2O over 5.3m (hole ITDD-23-227).
Blake Hylands, P.Geo., CEO, commented, “Our most recent drilling efforts at Bandeira, particularly hole ITDD-23-221 and 218, encountered an impressive new zone of high-grade mineralization, clearly highlighting the abundance of spodumene not only on our property but in this district. These results continue to emphasize the robustness of the lithium deposit at Bandeira, which currently represents around 90% of our total resource tonnage but only ~1% of our total property size pointing to the immense potential and scalability of our projects in this lithium-rich region.”
Bandeira is a 175-hectare property within its large 14,182-hectare land package, which hosts a 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. This MRE formed the basis of a Preliminary Economic Assessment (PEA), which 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%.
A total of approximately 68,700 metres (373 holes) have been drilled at the Itinga group of properties since exploration activities began in April 2022, of which ~52,650 metres (256 holes) have been drilled at Bandeira. The Bandeira MRE considered in the PEA included 182 drill holes (39,679 metres) until the cut-off date of August 30, 2023; 74 drill holes (~12,970 metres) have been completed at Bandeira since then, focusing on improving drill density and testing mineral extensions, which has significantly expanded lithium mineralization and remains open to further growth.
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 in early 2024.
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, which 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. Last week, on December 4, the company announced the appointment of mining veteran, Paulo Misk, to its team as COO to boast its technical and operational capabilities as it quickly accelerates the Bandeira project.
Lithium Ionic is 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. 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.
