LSC Lithium Announces Initial Exploration Results and Exploration Target on Salar de pozuelos Project in Northern Argentina

Location of the Pozuelos Property (CNW Group/LSC Lithium Corporation)

LSC Lithium Corporation (CNW Group/LSC Lithium Corporation)

Lithium Brine Grades Consistently 500 to 600 mg/L Lithium down to 180 m

Exploration Target of 860,000 to 1,030,000 tonnes LCE at Salar de Pozuleos

TORONTO, April 10, 2017 /CNW/ - LSC Lithium Corporation (the "Company" or "LSC") (TSXV: LSC) is pleased to announce the first results from its current exploration program on the salar de Pozuelos property in Salta province, Argentina (the "Property"). LSC previously announced its pending acquisition of the Property by way of the exercise of an option to acquire 100% of the issued and outstanding shares of LitheA Inc. ("LitheA") from BMC Global Limited ("BMC").  The completion of the acquisition is subject to TSX Venture Exchange ("TSX-V") approval.

LSC considers the Property to be one of the most important undeveloped lithium brine projects in Argentina with the potential to be a significant lithium producer should the project successfully advance to a feasibility study level.

LSC has undertaken a program of diamond drilling, brine sampling, porosity testing and pumping tests on the salar over the past two months. Two pumping wells have been constructed to 45 m and 95 m depth and a deep diamond drill hole ("DDH") to 322.7 m has been drilled. In addition, piezometric wells have been drilled to depths of either 35 m or 90 m at distances of 5 m, 20 m and 50 m from the pumping wells to develop data on well performance.

Drill core from the piezometric wells and the deep diamond hole has been photographed, logged for lithology, and selected intervals sampled for Relative Brine Release Capacity (RBRC) tests at Daniel B. Stephens & Associates (DBSA) in Albuquerque, New Mexico for analysis.  DBSA are independent of LSC and Enirgi Group Corporation ("Enirgi Group"). The pumping and piezometric wells were developed, gravel packed and screened. The pumping wells were finished at 10" diameter while the piezometric wells were finished at 2" diameter.

Drill core data shows the salar is composed of highly fractured to moderately fractured halite down to approximately 35 m. Halite progressively becomes more massive to approximately 90 m depth, where the lithology transitions to a mix of clay and halite to a depth of approximately 170 m. A sand zone extends approximately 30 m to approximately 200 m depth, which then transitions to clay to the end of hole at 322.7 m in basement rock.

Table 1 summarizes the drilling completed by LSC to date.

Table 1: Drill Hole Summary

Hole	POSGAR 94 datum		Depth (m)	Azimuth	Dip	Type	Bit Size	Casing (inch)	Type	Screen Interval (m)
	Northing	Easting								From - To
W1-35	7266941.882	3415992.832	45	0	90	Direct Rotary	15"	10"	Pumping	0 - 35
PzW1-35-5	7266939.231	3415997.294	35.0	0	90	DDH	HQ	2"	Piezometer	0 - 35
PzW1-35-20	7266930.833	3415975.836	35.0	0	90	DDH	HQ	2"	Piezometer	0 - 35
PzW1-35-50	7266991.334	3415993.254	35.0	0	90	DDH	HQ	2"	Piezometer	0 - 35
W2-90	7266937.597	3418025.188	95.0	0	90	Direct Rotary	15"	10"	Pumping	35 - 80
PzW2-90-5	7266935.514	3418030.010	90.0	0	90	DDH	HQ	2"	Piezometer	35 - 85
PzW2-90-20	7266928.144	3418007.933	90.0	0	90	DDH	HQ	2"	Piezometer	35 - 85
PzW2-90-50	7266987.826	3418024.300	90.0	0	90	DDH	HQ	2"	Piezometer	35 - 85
DDH-400	7266435.416	3417075.697	322.7	0	90	DDH	HQ	2"	Exploration	80 - 200

Core samples for RBRC tests to determine Specific Yield (Sy), a measure of effective porosity, were taken from selected drill holes representing all lithologies and all depths of the holes drilled to date. Samples were shipped to DBSA in Albuquerque, New Mexico for analysis. Check samples were shipped to Core Laboratories Inc. ("Core Labs") in Houston, Texas, which is independent of LSC and Enirgi Group.  DBSA has developed a proprietary method to test effective porosity of core samples from salars that has been widely adopted by companies exploring for lithium brines. Details of the method are described in a paper by Stormont1 et. al. (2011).  Core Labs uses a modified version of the DBSA method.  Results from the tests received to date from DBSA are summarized in Table 2. Check sample results for RBRC samples are expected to be received the week of April 15, 2017.

Table 2: Relative Brine Release Capacity Test Results

RBRC	Hole	From (m)	To (m)	Length (m)	RBRC (%, cm^3/cm^3)	Lithology
001	PzW1-35-5	4.64	4.81	0.17	6.8	halite, large macropores & soil layers
002		7.15	7.38	0.23	4.2	halite, some macropores & soil layers
003		14.50	14.75	0.25	1.3	halie, dense
004		20.25	20.50	0.25	6.6	halite, large crystals & macropores, fractured
005		23.72	24.01	0.29	1.7	halite, some macropores
006	PzW1-35-20	2.79	2.92	0.13	5.6	halite, some macropores, slightly brittle
007		6.79	7.00	0.21	4.4	halite, some macropores
008		12.48	12.71	0.23	2.7	halite, some macropores & some variability, dense
009		16.10	16.30	0.20	6.5	halite, some macropores
010		18.44	18.70	0.26	0.9	halite, dense
011	PzW1-35-50	22.75	23.00	0.25	1.8	halite with some sand/silt
012		25.42	25.67	0.25	0.4	halite, dense
013		27.56	27.81	0.25	1.4	halite, dense
014		30.32	30.57	0.25	1.3	halite, dense
015		32.95	33.20	0.25	0.3	halite, dense
016	PzW2-90-5	3.33	3.53	0.20	6.7	halite, some macropores
017		4.82	5.02	0.20		check sample
018		14.06	14.34	0.28		check sample
019		34.45	34.69	0.24	0.3	halite, dense
020		41.61	41.83	0.22	0.4	halite, some thin layers of soil, dense
021		47.94	48.16	0.22	0.3	halite, dense
022		55.80	56.06	0.26	0.4	halite with some sand and silt
023		63.53	63.81	0.28	0.3	halite with some thin layers of soil
024		71.76	71.96	0.20	0.5	halite with sand & silt throughout, dense
025		80.00	80.25	0.25	0.5	halite, dense
026		87.80	88.00	0.20	3.3	clay core with halite, dense
027	PzW2-90-20	5.67	5.87	0.20		check sample
028		10.13	10.33	0.20	0.8	halite, with some thin layers of soil
029		12.04	12.23	0.19		check sample
030		36.50	36.75	0.25	0.2	halite, dense
031		43.70	43.95	0.25	0.2	halite, dense
032		50.09	50.34	0.25	0.4	halite with some macropores, dense
033		58.26	58.46	0.20	0.4	halite with some thin layers of soil, dense
034		66.53	66.78	0.25	0.4	halite, dense
035		75.00	75.22	0.22	0.6	halite, dense
036		82.65	82.88	0.23	10.6	halite with clay & some silt & macropores
037		85.00	85.22	0.22	3.7	clay with halite & macropores
038	PzW2-90-50	25.50	25.72	0.22		check sample
039		32.75	33.00	0.25		check sample
040		38.50	38.75	0.25	0.3	halite with some macropores, dense
041		46.56	46.81	0.25	0.7	halite, dense
042		50.00	50.25	0.25		check sample
043		53.06	53.31	0.25	1.0	halite, dense
044		60.75	61.00	0.25	0.6	halite with some sand/silt layers, dense
045		69.00	69.25	0.25	0.6	halite, dense
046		77.91	78.13	0.22	0.6	halite, dense
047		82.82	83.00	0.18		check sample
048		85.61	85.86	0.25	3.8	clay with some halite
049	DDH-400	89.96	90.21	0.25	5.2	clay with some halite & macropores
050		92.60	92.82	0.22	6.4	clay with sand & halite
051		102.63	102.80	0.17	8.7	clay with silt/sand & halite with medium crystals
052		142.83	143.08	0.25	1.7	halite with sand
053		150.53	150.78	0.25	0.8	clay with sand and halite
054		173.50	173.70	0.20	12.0	clay/sand with halite, soft
055		195.44	195.69	0.25	6.8	sand with fine grained halite and clay
056		205.78	205.94	0.16	1.5	halite with silt/sand & some clay, dense
057		247.77	248.00	0.23	1.1	clay with sand and halite
058		255.19	255.40	0.21	1.1	sand with fine grained halite & clay

Brine samples were recovered from the selected piezometric wells and the deep diamond drill hole using a packer system to isolate specific levels in the holes. The results available to date show consistent lithium brine grades down hole, as detailed in Table 3. The assays show the brine has excellent chemistry. Assays for deeper intervals from DDH-400 past 182 m have not yet been received.

Table 3: Average Brine Sample Assays

Hole No.	Sample Interval (depth, m)	Li (mg/L, average)	Li Assay Range (mg/L)	Mg/Li	SO4/Ca	Mg/Ca	K/Li	SO4/Li	Density (g/mL)
PzW1-35	8.00 – 30.97	613	575- 627	4.1	1.8	1.3	9.9	5.7	1.22
PzW2-90	30.77 – 89.47	499	480 - 509	4.4	34.3	4.4	9.7	30.2	1.22
DDH-400	20 - 182	522	467 - 614	4.5	4.3	1.5	9.3	12.0	1.22

Short-term pumping tests on well W1-35 were run to stress the well and develop data on the hydraulic properties of the upper 35 m of the salar. The tests were run at pump rates of 22 m³/hr to 36 m³/hr over a 6-hour period. The maximum drawdown was 20.77 m. After the pump was shut down, the well fully recovered in 10 minutes. Minimal drawdown (<5 cm) was observed at all of the piezometric wells. Brine samples were taken at periodic intervals throughout the test. The results showed consistent Li assays throughout the duration of the test. The results of the sample assays from the short duration pump test are detailed in Table 4. A short-term stress test of the 90 m pumping well (W2-90) is planned for completion the week of April 9, 2017.

Table 4: Sample Assays – Short Term Pump Test on Well P1-35

Pump Step	Sample	Time from Start (min)	Li (mg/L)	Mg/Li
1	SP-048	15	613	4.1
	SP-049	30	609	4.1
	SP-052	50	610	4.1
	SP-053	95	595	4.2
2	SP-054	120	598	4.2
	SP-055	135	610	4.1
	SP-056	165	605	4.1
3	SP-057	210	592	4.2
	SP-058	225	603	4.1
	SP-060	255	595	4.2
	SP-061	295	597	4.2
	SP-062	350	592	4.2

LSC's planned exploration activities on the Property over the next two months include long term pumping tests for both the 35 m and 90 m pumping wells, seismic work and additional diamond drilling and pumping wells to test the full extent and depth of the salar.  It is estimated that these activities will cost approximately US$500,000.  LSC has funds on hand to pay for this program.

Based on the results of the current exploration work to date, and work completed by LitheA, LSC has developed an exploration target for the Property. The exploration target is based on a salar surface of 8,000 ha, a depth of 35 m for the upper halite zone, 55 m for the middle halite zone, and a depth of 30 m for the lower clastic zone, an average lithium brine grade ranging from 500 mg/L to 600 mg/L and average porosities of 3.1% for the initial 35 m, 1.7% for the interval between 35 m and 90 m and 6.8% for the lower clastic zone.  These ranges are conceptual in nature as further drilling and pumping tests will be required to validate the geological assumptions used, and further drilling may challenge these assumptions. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  The exploration target is summarized in Table 5.

Table 5: LSC Exploration Target – Salar de Pozuleos Project

						Lithium Carbonate Equivalent^1 (kt) at
Zone	Thickness (m)	Area (ha)	Average Porosity (%)	Average Lithium Grade (mg/L)		500 mg/L	600 mg/L
Upper Halite	35	8,000	3.1	500	600	231	277
Middle Halite	55	8,000	1.7	500	600	199	239
Lower Clastic	30	8,000	6.8	500	600	434	521
TOTAL						860^1	1,030^1

1) Numbers are rounded and total has been rounded down. Li to Li₂CO₃ conversion factor 5.323.

The Property is a major strategic acquisition for LSC as it is a large, high quality Salar located in close proximity to Enirgi Group's planned future regional processing facility at Salar del Rincón. LSC and Enirgi Group are strategically cooperating on lithium development in Northern Argentina pursuant to a Relationship Agreement whereby, among other things, the parties will examine the most economic solution to process LSC's brines which may include supplying LSC's brines for processing at Enirgi Group's planned facility. LSC expects to be able to begin shipping brine from the Property for testing at Enirgi Group's demonstration plant on the Salar del Rincón, following its anticipated commissioning, in the second half of this year. The map featured below shows the proximity of the Property to Enirgi Group's Salar del Rincón Project approximately 80 kilometers away.

Sampling and QA/QC

Brine sampling for packer tests involved collection of brine from the sample interval in a 20-litre container, which was flushed with fresh brine several times prior to collection of the sample. Brine was poured into 1-litre sample bottles which had been previously flushed with fresh brine from the 20-litre container several times. Sample bottles were filled to the top to eliminate the inclusion of air and sealed with a leak proof lid. Samples were labelled and labels covered in clear tape to prevent erasure of sample information. All samples remained in the possession of the site geologist until delivery to Alex Stewart Laboratory in Mendoza, Argentina by courier. Brine sampling for the pump stress test involved collection of samples from a valve attached to the pump outlet. Brine was allowed to flush and then fresh brine was used to wash the sample bottle several times before collecting the sample. Sample bottles were 1-litre in size and were filled to the top to prevent entrance of air. The samples were sealed with a leak proof lid, labelled and the label covered by clear tape. Samples remained in the possession of the site until delivery by courier to the assay laboratory.

RBRC samples were cut to length using a hack saw, bubble wrapped for protection and then placed in PVC tubes which were sealed with packaging tape. The samples were labelled and the labels wrapped in clear tape. Samples remained in the custody of the site geologist until shipped. Brine (20 L) from each of the holes from which the samples were collected was also shipped to DBSA as part of the sample test protocol.

LSC has a well-developed QA/QC program. Brine assays are undertaken at Alex Stewart Argentina ("ASA") S.A. in Menodoza, Argentina. ASA is independent of LSC and Enirgi Group and has significant experience in assaying lithium brines and is certified to ISO17025 standards. Brine assays are undertaken using the methods shown in Table 5.  

Table 6: Methods for Brine Assays

Analyte	Method	ASA Method Name	Limit of Detection
Li	ICP	LMMT03	0.05 mg/L
Ca	ICP	LMMT03	0.025 mg/L
Mg	ICP	LMMT03	0.05 mg/L
B	ICP	LMMT03	0.05 mg/L
Na	ICP	LMMT03	0.1 mg/L
K	ICP	LMMT03	0.25 mg/L
Ba	ICP	LMMT03	0.01 mg/L
Sr	ICP	LMMT03	0.005 mg/L
Fe	ICP	LMMT03	0.01 mg/L
Mn	ICP	LMMT03	0.05 mg/L
Cl^-	Argentometric	LMC101	250 mg/L
PO4^3-	Colorometric	LMC107	1 mg/L
SO4^2-	Gravimetric	LMC122	10 mg/L
Alkalinity	Volumetric	LMFQ15	20 mg/L
CO3^2-	Volumetric	LMFQ16	10 mg/L
HCO3^-	Volumetric	LMFQ17	10 mg/L
Density	Pycnometer	LMFQ19
Hardness	Volumetric	LMFQ13	20 mgCaCO3/L
pH	Potentiometric	LMC128
Conductivity	Potentiometric	LMFQ01
TDS	Gravimetric	LMFQ08

ASA runs internal duplicates at a rate of 1 in 20. LSC inserts blanks and standards in sample batches at a rate of 1 in 20. Standards are internal standards developed by Enirgi Group, LSC's strategic partner, that have been independently certified by round robin testing. LSC uses distilled water as blanks.  

Qualified Person/Data Verification

The scientific and technical information included in this press release is based upon information prepared and approved by Donald H. Hains, P.Geo.  Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC and Enirgi Group. Mr. Hains has verified all sampling, analytical and test data underlying the information contained in this press release by on-site inspection during drilling, brine sampling, and selection of RBRC samples; review of drill core photographs to verify lithology; review of certified assay certificates against the assay data base; review of pump test data; and review of RBRC results received from DBSA. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

ABOUT LSC LITHIUM CORPORATION:

LSC is an emerging lithium producer that has amassed a large portfolio of prospective lithium rich salars in Northern Argentina. LSC's five flagship properties on the salars Pozuelos (pending completion of the acquisition), Pastos Grandes, Salinas Grandes, Rio Grande and Jama are located in the "Lithium Triangle," an area at the intersection of Argentina, Bolivia and Chile where the world's most abundant lithium brine deposits are found. After completion of announced acquisitions, LSC will hold a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the following: receipt of TSX-V approval for the closing of the acquisition of LitheA, timing for the acquisition of LitheA, the timing and ability to complete further exploration work on the Property to define a resource and advance it to feasibility study level, the timing for testing brines at Enirgi Group's Salar del Rincón demonstration plant, the definition of any mineral resources or mineral reserve estimates pursuant to NI 43-101 on our properties, the timing for potential future production at our properties, the use and application of Enirgi Group's Direct Xtraction Process Technology at our properties, completion of work programs on our properties, the ongoing strategic relationship with Enirgi Group and the closing of property acquisitions from Orocobre Limited and Advantage Lithium Corporation.   The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to exploration and the establishment of resources and reserves on the Property or other LSC properties; the application and future licensing of new technologies; the risks  around timing, permitting, funding and construction of a regional processing facility at the Salar del Rincón by Enirgi Group and the ability of LSC to fast-track production from its own properties by supplying brine to such a facility; risks relating to proposed acquisitions; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC's share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties.  Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information see the Company's filing statement on SEDAR at www.sedar.com.

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

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

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¹ Geotechnical Testing Journal, Vol. 34, No. 5. Paper available at www.astm.org.

SOURCE LSC Lithium Corporation

LSC Lithium Corporation, Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, [phone], Email: [email protected], Website: lsclithium.com