Millennial Lithium Corp. is pleased to report it has entered into an option agreement to acquire 100% of the Cauchari East Expansion Project in Jujuy Province, Argentina.
The Cauchari East Expansion Project covers an area of 8,742 hectares and is contiguous to and consolidates Millennial's wholly owned Cauchari East Project ("Cauchari East"). Cauchari East is adjacent to Orocobre and Advantage Lithium's Cauchari Project and the Lithium Americas/SQM advanced-stage Cauchari-Olaroz Project. With the addition of this project, Millennial's land holdings at Cauchari East total 11,742 hectares.
Farhad Abasov, Millennial's CEO commented, "The addition of the Cauchari East Expansion Project further expands Millennial's land position on the eastern side of the Cauchari basin. With over 11,000 hectares, Cauchari East now covers enough ground to be considered a world class, stand-alone lithium exploration project."
As announced on April 12, 2017, Millennial engaged Tecnología y Recursos (TyR), a Salta-based geophysics consulting group, to conduct a 10 station Vertical Electrical Sounding (VES) survey over the Cauchari East Project. The survey identified a sharp contrast between high resistivity upper zones and low resistivity (conductive) lower zones, which can be indicative of brine-bearing sediments. Technical reports from adjacent properties controlled by Orocobre and Lithium America's Corp., confirm that the brine-bearing aquifer is related to a low resistivity horizon. These horizons under Cauchari East may be the continuation of the known brine-bearing aquifers of the Olaroz and Cauchari basins.
Measurements taken from most survey stations demonstrate good potential for continuous lithium brine mineralization. A north-south profile over the northern property block identifies a continuous 72 to 105 metre thick conductive layer extending from productive aquifers of the present-day Olaroz salar. As that layer extends into the southern block of Cauchari East, it thickens beyond the detective depth capacity of the VES survey. An east-west profile in the southern block further supports continuity with the Cauchari basin aquifers. In addition, the profile identifies what appears to be a structurally confined sub-basin containing the deep conductive zone continuous with the north-south profile.
Permitting for a drill program is underway and the required public consultations and Jujuy Government approvals are anticipated to be completed in the third quarter of 2017.
Under the terms of the Agreement, Millennial can acquire a 100% interest in the Project, subject to the approval of the TSX Venture Exchange, in consideration of the following payments and share issuances:
- USD $10,000 on the Effective Date - Paid
- USD $40,000, payable as USD$20,000 in cash and USD$20,000 in common shares of Millennial on or before the date (the "Mining Court Registration Date") of the granting of the Property (Cateo # 1638-M-2011) in the name of the Holders;
- USD $100,000, payable as USD $50,000 in cash and USD $50,000 in common shares of Millennial on or before the first anniversary of the Mining Court Registration Date; and
- USD $100,000, payable as USD $50,000 in cash and USD $50,000 in common shares of Millennial on or before the second year anniversary of the Mining Court Registration Date.
The total Option Payments for Millennial's exercise of the Option are USD $250,000.
The Company would like to further report that an updated NI 43-101 Technical Report, on the Company's Pastos Grandes Project, has been filed on Sedar.
This news release has been reviewed by Iain Scarr, AIPG CPG., COO of the Company and a qualified person as that term is defined in National Instrument 43-101.