Alpha’s latest drilling campaign resulted in a 70% increase to the “indicated resource” category and a 20% increase to the “inferred resource” category.
The updated resource estimate is still considered preliminary, as it was prepared primarily to assist multiple parties that have entered into standard Non-Disclosure Agreements as part of the sale of the Company’s Tolillar asset (the “Sale Process”) and/or the Company’s consideration of a potential corporate-level transaction (collectively the “Strategic Review”).
In the interest of time and the dissemination of meaningful information, and resulting from an externally imposed timeline, Alpha has published this resource estimate while two drilling rigs are still active in Tolillar (others were moved to drill Alpha’s nearby Hombre Muerto assets) and only 37%, or 10,200 of the 27,500-hectare site, has been explored.
Table 1: Increased Tolillar Brine Resource Estimate
Updated | Changes in Resource Estimate | |||
Resource Category | Indicated | Inferred | Indicated | Inferred |
Brine Volume (m3) | 2,940,766,000 | 1,453,640,300 | +1,293,066,000 | +313,117,300 |
In-situ Lithium (tonnes) | 681,000 | 262,000 | +283,000 | +44,000 |
LCE (tonnes)* | 3,626,000 | 1,393,000 | +1,507,000 | +235,000 |
In-situ Potassium (tonnes) | 6,942,000 | 2,790,000 | +3,069,000 | +280,000 |
KCl (tonnes)* | 13,237,000 | 5,320,000 | +5,850,000 | +534,000 |
* Lithium Carbonate Equivalent (“LCE”) and Potassium Chloride Equivalent (“KCl”), tonnages are rounded to the nearest thousand
The reader is cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
The resource estimate also includes 13,237,000 tonnes of potassium equivalent (“KCl”) in the indicated, and a further 5,320,000 tonnes of KCI in the inferred, category. The current values are subsequent to the Company’s maiden resource estimate, published in
The resource estimate was prepared in accordance with the guidelines of National Instrument 43-101 and uses best practice methods specific to brine resources, including a reliance on sampling methods based on sustained pumping (pumping tests) and effective (drainable) porosity estimation. Independent qualified person, Dr.
The resource is defined over a 102 km2 footprint using results from short-term pumping tests and from naturally flowing wells. The indicated and inferred resource was derived from wells drilled to depths up to 400 meters. Geophysical surveys were used to assist with location and anticipated depths for all holes, and also to identify potential for brine at-depth, freshwater values, and to extend the inferred resource, to be included in future drilling to even greater depths and potentially for increased resource estimates. Over most of the basin, the brine resource occurs to within one metre of surface and its thickness is defined by the extent of drilling.
The total contained lithium and potassium values are based on effective (drainable) porosity estimates for the lithologies in the resource zone. As the term implies, drainable porosity estimates the portion of the total porosity that can theoretically be drained.
Resource Estimation Methodology
GWI chose to estimate the resource using a drill-hole centered polygonal technique, similar to the previous (2022) estimate. A total of 4,635 metres of drilling from 17 holes were used to define the polygons used in the resource estimate calculation. An additional 5 boreholes in the resource domain were used for qualitative information. The total thickness of the basin, and the total thickness of saturated sediments, remains undefined in some resource areas.
Hydrostratigraphic units have variable thickness and were determined based on observed lithology and anticipated similar hydraulic properties. The values for drainable porosity were estimated from similar materials. Grade (lithium and potassium values) for each hydrostratigraphic unit were derived from direct sampling of the wells. The unit thicknesses combined with the areas yield a volume. The volumes combined with the drainable porosity values, represent the amount of fluid available from the formation, which is converted to brine tonnage. Applying the grade, represented as lithium carbonate and potassium chloride equivalents provides the estimated resource for each block, which are then summed.
The primary analytical laboratories for the data used in this resource are
Qualified Person:
Dr.
Take No Action
Further to the hostile bid announced by Tecpetrol, the Board and management of Alpha will not tender to the Tecpetrol bid and remind all parties that shareholders have no obligation to tender – or sell – their shares. For the reasons fully described in our Directors’ Circular (see
All operations and assets of the Company are in
ON BEHALF OF THE BOARD OF ALPHA LITHIUM CORPORATION
“Brad Nichol”
President, CEO and Director
For more information:
Alpha Lithium Investor Relations
Tel: +1 844 592 6337
relations@alphalithium.com
www.alphalithium.com
www.protectalphalithium.com
About
Forward-Looking Statements
This news release contains forward-looking statements and other statements that are not historical facts, including statements concerning the potential size and value of the minerals contained in the Tolillar salar, the Hostile Offer, the Sale Process and the Strategic Review and the possible results thereof. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this news release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the results of further brine process testing and exploration, the results of further discussions, if any, between the Company, Tecpetrol and other third parties, the ability of the Company to successfully complete the Sale Process or the Strategic Review or to do so on a timely basis, global economic conditions and other risks detailed from time to time in the filings made by the Company with securities regulators. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, include numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.
No securities regulatory authority has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8dbc319-32cd-4206-9dad-702d31044998
Protect Alpha Lithium QR Code
Scan to visit https://www.protectalphalithium.com/
2023 GlobeNewswire, Inc., source