Lithium South Development Announces Completion of Phase I Environmental Baseline Study and Progress on Phases II and III

Rhea-AI Summary

Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) has announced the completion of Phase I of the Environmental Baseline Study for its Hombre Muerto North Lithium Project in Argentina. The 18-month study, conducted by Knight Piesold Consulting, covers hydrology, hydrogeology, soil quality, flora and fauna, landscape, and socio-cultural impact. This milestone is important for advancing the project towards a projected production of 15,600 tonnes per year of lithium carbonate.

The company is now progressing with Phases II and III of the Environmental Impact Assessment, focusing on basic engineering, detailed environmental impact assessments, mitigation strategies, and stakeholder engagement. Lithium South is also working on a Definitive Economic Assessment, which may potentially increase the project's throughput size.

Positive

• Completion of Phase I Environmental Baseline Study, a key step towards project development
• Advancement to Phases II and III of Environmental Impact Assessment
• Potential increase in project throughput beyond the initially projected 15,600 tonnes per year
• Progress towards filing for construction permissions

Negative

• Ongoing environmental and social impact assessments may reveal challenges or delays
• Potential changes in project scope could impact timelines and costs

VANCOUVER, BC, Sept. 12, 2024 /PRNewswire/ -- Lithium South Development Corporation (the "Company" or "Lithium South") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce the successful completion of Phase I of the Environmental Baseline Study for the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina. The report was completed by Knight Piesold Consulting (Argentina), a global engineering firm. The evaluation has taken 18 months and represents an important step for moving the project towards development.

The report presents comprehensive data pertaining to hydrology, hydrogeology, soil quality, flora and fauna, landscape and socio-cultural impact. The report establishes an environmental baseline from which the Company can further develop the project to an anticipated production rate of 15,600 tonnes per year of lithium carbonate using industry standard evaporation. This report will be key to the completion of an Environmental Impact Report seeking permissions to construct the mine.

The Company is now advancing with Phases II and III of the Environmental Impact Assessment, which will focus on:

• Basic Engineering: The basic construction and waste engineering, for the preparation of the environmental impact assessment
• Detailed Environmental Impact Assessments: In-depth analysis of potential environmental impacts due to the construction and operation of the production facility, particularly focusing on the construction of evaporation ponds.
• Mitigation Strategies: Development of comprehensive plans to mitigate any identified environmental and social impacts, including water management plans and habitat restoration initiatives.
• Stakeholder Engagement: Continued engagement with local communities and stakeholders to ensure transparency and address any concerns

Company Founder, President, and Chief Executive Officer, Adrian F. C. Hobkirk comments, "We are now arriving at an important milestone for the HMN Li Project, the filing for construction permissions. The Company is moving this process ahead in conjunction with completing a Definitive Economic Assessment. During this process, the project may be further enhanced in throughput size, exceeding the 15,600 tonnes per year recently published in our Preliminary Economic Assessment.  We look forward to completing the required engineering and well drilling on a fast -track basis."

Social Responsibility

The company as part of his social responsibility program is donating 5 Tn of NaCl (salt) to the community of Pastos Grandes. The NaCl was sourced from HMN Li Project evaporation ponds currently in operation.

2023 AGM

The Annual General Meeting was held August 31, 2024. A new board was elected and is comprised of Adrian F. C. Hobkirk, Christopher P. Cherry, Alison Dai, Fernando Villarroel and Gordon Neal. All management proposals passed with the exception of the re-pricing of certain stock options held by insiders.

Market Awareness Program

To enhance market awareness of Lithium South, the Company has retained, for financial services, Emerging Growth, LLC of Montana, U.S.A. d/b/a TDM Financial and owned by Darren Dayton. TDM will provide content development, distribution, corporate video production and social media awareness.  TDM Financial holds now shares or financial instruments in the Company. The Company has agreed to a four -month contract at U.S. $10,000 per month subject to the approval of the TSX Venture Exchange.

About Lithium South

Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle.  The Salar del Hombre Muerto has a history of lithium production, with Arcadium Lithium (as a result of the Alkem and Livent merger) in operation for over twenty-five years, in an area just south of the HMN Li Project.  The HMN Li Project is surrounded by a US$4 billion lithium development under construction by POSCO (Korea) and the Sal de Vida Project under development by Arcadium. Exploration work to date has delineated a National Instrument 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent ("LCE") Resource (Note 1) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Lithium Project. A recent Preliminary Economic Assessment filed April 30, 2024 (Note 2) delineates the exciting potential of a 15,600 tonne per year lithium carbonate project.  With pumping well installation underway, Lithium South is transitioning from being a lithium explorer to becoming a lithium developer.

On behalf of the Board of Directors

Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com

Note 1: A report titled Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, M.Sc, MAusIMM, September 5th, 2023.

Note 2: The report titled, N.I. 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina, was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., both industry leading independent engineering consulting firms.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release

This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements.  The reader is cautioned not to place undue reliance on forward- looking statements.  We seek safe harbor.

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SOURCE Lithium South Development Corporation

FAQ

What is the current production target for Lithium South's HMN Li Project?

The current production target for Lithium South's (LISMF) Hombre Muerto North Lithium Project is 15,600 tonnes per year of lithium carbonate, as stated in their recent Preliminary Economic Assessment.

What phases of the Environmental Impact Assessment has Lithium South (LISMF) completed?

Lithium South (LISMF) has completed Phase I of the Environmental Baseline Study and is now advancing with Phases II and III of the Environmental Impact Assessment for the HMN Li Project.

What are the focus areas for Phases II and III of Lithium South's (LISMF) Environmental Impact Assessment?

Phases II and III focus on basic engineering, detailed environmental impact assessments, mitigation strategies for environmental and social impacts, and stakeholder engagement for Lithium South's (LISMF) HMN Li Project.

When did Lithium South (LISMF) hold its Annual General Meeting in 2023?

Lithium South (LISMF) held its Annual General Meeting on August 31, 2023, where a new board was elected and management proposals were voted on.