Lithium Ionic drills 2.11% Li2O over 9.9m, 1.73% Li2O over 10.4m and 1.68% Li2O over 10.0m at Bandeira, Minas Gerais, Brazil

Rhea-AI Summary

Lithium Ionic Corp. reports drill results from the Bandeira Project in Brazil, showing significant lithium intercepts. The results are part of a large drill program aimed at expanding mineral resource estimates. The company expects the results to improve the scale and quality of the deposit. Lithium Ionic also reported a new mineral resource estimate for Bandeira, which forms the basis of a preliminary economic assessment supporting a long-life and low-cost mining project. The company is rapidly advancing towards a production decision and is progressing well with permitting activities.

Positive

• Lithium Ionic Corp. reports significant lithium intercepts from the Bandeira Project drill results.
• The drill program is designed to expand and upgrade mineral resource estimates.
• The new mineral resource estimate for Bandeira supports a long-life and low-cost mining project.
• The preliminary economic assessment shows a post-tax Net Present Value of US$1.6 billion and an Internal Rate of Return of 121%.
• The company is rapidly advancing towards a production decision and progressing well with permitting activities.

Negative

• None.

TORONTO, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) (“Lithium Ionic” or the “Company”) reports drill results from the Bandeira Project (“Bandeira”), in northern Minas Gerais State, Brazil. Bandeira is a 175-hectare property within its large 14,182-hectare land package, located in a region recently coined “Lithium Valley” by state officials, which is emerging as a globally significant hard rock lithium-producing district.

These results form part of a large 50,000-metre drill program underway for H2 2023, which is designed to expand and upgrade existing mineral resource estimates and grow mineralization at other prospective regional targets.

Bandeira Drill Intercept Highlights (See Figure 1):

• 2.11% Li2O over 9.9m, 1.57% Li2O over 8.5m and 1.62% Li2O over 6.6m
  (hole ITDD-23-163)
• 1.73% Li2O over 10.4m and 1.40% Li2O over 8.9m (hole ITDD-23-164)
• 1.68% Li2O over 10.0m and 1.86% Li2O over 5.7m (hole ITDD-23-167)
• 1.88% Li2O over 8.0m (hole ITDD-23-165)
• 2.57% Li2O over 3.0m (hole ITDD-23-161)
• 1.57% Li2O over 4.9m, 1.82% Li2O over 3.7m and 1.71% Li2O over 3.6m
  (hole ITDD-23-154)
• 1.53% Li2O over 5.0m (hole ITDD-23-157)
  

Blake Hylands, P.Geo., Chief Executive Officer of Lithium Ionic, commented, "Today's drill results underscore the continued growth potential of Bandeira – a property which represents only approximately 1% of our total land package in this prolific lithium belt. The new mineral resource estimate we reported earlier this month for Bandeira reflects a snapshot in time, based on data up to August 2023. Since then, we have conducted substantial drilling, including the strong results announced today, which we expect will continue to improve the scale and quality of this deposit, and will act as the cornerstone of our forthcoming Feasibility Study."

On October 19, 2023, the Company reported a new mineral resource estimate (“MRE”) for Bandeira of 13.72Mt grading 1.40% Li2O (474,892t LCE) in the Measured and Indicated category, in addition to an Inferred resource estimate of 15.79Mt grading 1.34% Li2O (523,118t LCE). This MRE was based on 204 drill holes with a data cut-off of August 30, 2023. An additional 34 holes, including those announced today, have been drilled since then and will be included in an updated mineral resource estimate along with an independent NI 43-101 compliant Feasibility Study (“FS”), expected to be completed in early 2024.

The Bandeira MRE from October 2023 formed the basis of the 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% (see press release dated October 19, 2023).

The Bandeira Project is located in the same district where Companhia Brasileira de Litio (CBL)’s Cachoeira mine has been producing lithium for +30 years, and recent producer Sigma Lithium operates the Grota do Cirillo project, which hosts the largest hard rock lithium deposit in the Americas (See Figure 1).

The Company is rapidly advancing Bandeira towards a production decision, while it continues to explore and define regional targets. Permitting activities are progressing well, in parallel with the advancement of project engineering. NEO Agroambiental Ltda is completing the RCA (Environmental Control Report) and PCA (Environmental Control Plan) to support the application of a Concomitant Environmental and Installation License (“LAC”, or Licença Ambiental Concomitante) for the Bandeira operation, which is expected to be submitted by the end of the year. The LAC is an accelerated permitting scenario available to projects such as Bandeira, whose mine infrastructure covers a small footprint where deforestation is not required. The LAC replaces the first two steps of the environmental licensing process: the Preliminary License (LP - Licença Prévia) and the Installation License (LI – Licença de Instalação); which precede the final Operating License (LO - Licença de Operação).

Figure 1. Bandeira Drill Collars and Traces with Intercept Highlights

View Figure 1 here: https://www.globenewswire.com/NewsRoom/AttachmentNg/d6a61efa-35da-46c7-8eb4-b3cdd952f22b

Table 1. Bandeira Drill Results

Hole ID	Az	Dip	From	To	Metres	Li2O (%)
ITDD-23-152	150	-80	53.78	58.31	4.53	0.85
and			272.95	274.60	1.65	1.52
and			291.26	295.53	4.27	1.68
ITDD-23-153	150	-50	nsv
ITDD-23-154	150	-65	108.52	113.42	4.90	1.57
and			119.76	121.15	1.39	1.46
and			296.12	298.14	2.02	1.58
and			302.70	306.29	3.59	1.71
and			332.07	335.08	3.01	1.80
and			359.89	363.56	3.67	1.82
ITDD-23-157	150	-85	87.20	89.20	2.00	0.93
and			190.25	193.25	3.00	0.65
and			203.54	205.60	2.06	1.78
and			291.46	293.46	2.00	1.66
and			354.35	359.35	5.00	1.53
ITDD-23-159	150	-50	287.50	289.55	2.05	1.28
ITDD-23-160	150	-50	234.27	237.37	3.10	1.18
ITDD-23-161	150	-50	128.59	132.12	3.53	1.38
and			174.56	177.56	3.00	2.57
and			313.74	315.43	1.69	2.10
and			351.41	354.37	2.96	1.16
ITDD-23-162	150	-79	53.69	56.49	2.80	1.10
and			395.57	399.80	4.23	1.18
and			458.62	462.24	3.62	1.22
ITDD-23-163	150	-55	355.35	358.35	3.00	0.97
and			382.72	385.73	3.01	1.03
and			392.27	397.65	5.38	1.04
and			406.30	409.30	3.00	1.07
and			425.03	434.90	9.87	2.11
and			469.10	477.57	8.47	1.57
and			511.31	517.88	6.57	1.62
ITDD-23-164	150	-50	81.29	83.39	2.10	1.61
and			89.70	100.06	10.36	1.73
and			170.48	173.30	2.82	1.73
and			325.78	330.68	4.90	0.82
and			415.18	416.80	1.62	1.56
and			434.58	443.52	8.94	1.40
ITDD-23-165	150	-60	195.00	202.99	7.99	1.88
and			338.94	342.77	3.83	1.42
ITDD-23-166	150	-50	97.55	99.71	2.16	2.03
ITDD-23-167	150	-79	228.46	238.50	10.04	1.68
and			345.55	351.27	5.72	1.86
ITDD-23-168	0	-90	116.69	119.69	3.00	1.02

*Hole ITDD-23-155 released on Sept 13, 2023, and holes ITDD-23-156 and ITDD-23-158 released on Sept. 27, 2023.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its flagship Itinga and Salinas projects 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. The Itinga 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.

Quality Assurance and Control

During the drill program, assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at SGS Laboratory, a certified independent commercial laboratory, and the other half was retained for results, cross checks, and future reference. A strict QA/QC program was applied to all samples. Every sample was processed with Drying, crushing from 75% to 3 mm, homogenization, quartering in Jones, spraying 250 to 300 g of sample in steel mill 95% to 150. SGS laboratory carried out multi-element analysis for ICP90A analysis.

Qualified Persons

The technical information in this news release has been prepared by Carlos Costa, Vice President Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, and both are “qualified persons” as defined in NI 43-101.

Investor and Media Inquiries:

+1 647.316.2500
info@lithiumionic.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the prospectivity of the Company’s mineral properties, the economic viability of the Bandeira, the mineralization and development of the Company’s mineral properties, the Company’s exploration program and other mining projects and prospects thereof, the Company’s ability to complete a Feasibility Study, the Company’s ability to complete an environmental impact assessment and obtain the requisite permitting and approvals and the Company’s future plans. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

Information and links in this press release relating to other mineral resource companies are from their sources believed to be reliable, but that have not been independently verified by the Company.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

FAQ

What is the name of the company mentioned in the press release?

The company mentioned in the press release is Lithium Ionic Corp.

Where is the Bandeira Project located?

The Bandeira Project is located in northern Minas Gerais State, Brazil.

What is the purpose of the drill program?

The drill program is designed to expand and upgrade existing mineral resource estimates and grow mineralization at other prospective regional targets.

What is the new mineral resource estimate for Bandeira?

The new mineral resource estimate for Bandeira is 13.72Mt grading 1.40% Li2O (474,892t LCE) in the Measured and Indicated category, with an Inferred resource estimate of 15.79Mt grading 1.34% Li2O (523,118t LCE).

What is the post-tax Net Present Value of the mining project?

The post-tax Net Present Value of the mining project is US$1.6 billion (~C$2.2 billion).

When is the completion of the independent NI 43-101 compliant Feasibility Study expected?

The completion of the independent NI 43-101 compliant Feasibility Study is expected in early 2024.

What is the permitting scenario for the Bandeira operation?

The Bandeira operation is eligible for an accelerated permitting scenario called the Concomitant Environmental and Installation License (LAC).

What are the key highlights of the drill results?

The key highlights of the drill results include intercepts of 2.11% Li2O over 9.9m, 1.57% Li2O over 8.5m, and 1.62% Li2O over 6.6m.