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BLM Approval Received - Drilling to Commence at Big Sandy

Arizona Lithium Limited (“Arizona Lithium,” “AZL” or “the Company”) a company focused on the sustainable development of two large lithium development projects in North America, the Big Sandy Lithium Project (“Big Sandy”) in Arizona, USA and the Prairie Lithium Project (“Prairie”) in Saskatchewan, Canada, is pleased to announce that it has received approval for a Permit of Exploration (POE) from the US Bureau of Land Management (“BLM”) for a drill and bulk sampling program at the Big Sandy Project.

BLM Approval Received - Drilling to Commence at Big Sandy
Figure 1. Interpreted outline of the Northern Mineralised Zone at Big Sandy showing the positions of Blocks A, B, C & D

Arizona Lithium Managing Director, Paul Lloyd, commented: “We are extremely pleased to have received approval from the Bureau of Land Management for the long awaited follow-up drill program at Big Sandy in Arizona. This represents a substantial development opportunity for a deposit that presently contains a JORC resource of 320,800 tonnes LCE. With only 4 % of the project drilled to date, we are looking to expand the existing Resource and validate the exploration target.”

“We look forward to working with BLM, NTEC, and all stakeholders to ensure the drilling program is successfully executed with minimum environmental impact.”

“I would like to thank shareholders for their ongoing support whilst Arizona Lithium worked diligently towards this approval.”

Upcoming Drilling Program

The POE approval by the BLM follows AZL engaging in a community involvement program that ensures mutually beneficial outcomes for all stakeholders.
As documented in the POE, an exploration program consisting of 131 drill holes and a bulk sample is planned to commence at Big Sandy in July 2024. The drill program will be managed by NTEC as part of the Mining Services Agreement.

NTEC is responsible for managing the permitting requirements, additional exploration drilling, mine design, environmental assessments, and development to the commencement of mining for the Big Sandy Lithium Project.

To date, AZL has only drilled 4% of the entire project area, with the upcoming drill program aimed at testing the validity of the estimated exploration target. As outlined in Figure 1 below, a significant opportunity exists to expand the existing Resource by drilling Blocks B, C, and D, as the current Resource Estimate is solely based on drilling in Block A.

Project Overview & Location (Arizona, USA)

The Project consists of a flat-lying, sedimentary-hosted lithium resource with excellent lateral continuity covered by thin overburden. Infrastructure is exceptional and the lithium resource has the potential to be developed with a very low environmental footprint.

The Big Sandy Lithium Project is located in Arizona just east of interstate I93 between Phoenix and Las Vegas. It is comprised of 300 Bureau of Land Management (BLM) claims, covering approximately 25 km2.

Previous Drilling

In July 2019, AZL completed a 37-hole diamond drill program that intersected significant widths of lithium mineralization, including high-grade intercepts up to 1m @ 4,380ppm Li.

High-grade intercepts from the drilling include:

  • DHQ1 21.0m @ 2,176 ppm Li from 9.0m to 30.0m
  • DHQ3 54.0m @ 2,041 ppm Li from 10.0m to 64.0m
  • DHQ4 19.55m @ 2,218 ppm Li from 11.45m to 31.0m
  • DHQ8 23.3m @ 2,143m ppm Li from 6.70m to 30.0m
  • DHQ10 44.0m @ 2,040m ppm Li from 12.0m to 56.0m
  • DHQ11 26.0m @ 2,205 ppm Li from 15.0m to 41.0m
  • DHQ12 21.0m @ 2,203 ppm Li from 10.0m to 31.0m
  • DHQ16 52.0m @ 2,042 ppm Li from 14.0m to 66.0m
  • DHQ21 22.0m @ 2,195 ppm Li from 14.0m to 36.0m
  • DHQ23 23.2m @ 2,141 ppm Li from 12.8m to 36.0m

JORC Mineral Resource Estimate

Arizona Lithium’s successful 2019 drill program at Big Sandy (37 HQ diamond holes totaling 2,881m) resulted in the estimation of a total Indicated and Inferred JORC resource of 32.5 million tonnes grading 1,850 ppm Li for 320,800 tonnes Li2CO3 (Table 1).

Table 1 - Big Sandy Project Mineral Resource Statement (above 800 ppm Li cut-off)

This represents 4 % of the Big Sandy Project area, which contains an estimated exploration target as outlined below.

Exploration Target

Big Sandy holds a significant exploration target with the potential for between 271.1Mt to 483.15Mt at 1,000 - >2,000ppm Li, as summarised in Table 2 below. The target is based on exploration, including geological mapping, drilling, and surface sampling in Blocks B, C, and D in the Northern Mineralised Zone (NMZ) and geological mapping and surface sampling in Blocks SMZ 1 and SMZ 2 in the Southern Mineralised Zone (SMZ),

The Exploration Target in Blocks B, C, and D in the NMZ, has been estimated using a range of thicknesses for the mineralized sedimentary material, calculated from data point elevations, drill hole data from prior Exploration Target Block A, lying between Blocks B and C, that has been converted to an inferred/indicated mineral resource and geological mapping. The grade estimates a range of values demonstrated from surface sampling.

The Exploration Target in Blocks SMZ 1 and SMZ 2 in the SMZ, has been estimated using a range of thicknesses for the mineralized sedimentary material, calculated from data point elevations, geological mapping, and knowledge of the mineralization controls and alteration witnessed in the NMZ. The grade estimates a range of values demonstrated from surface sampling.

Table 2 – Summary of Exploration Target

Note that the potential quantity and grade of the estimated geological potential (Exploration Target) is conceptual in nature. There has been insufficient exploration to estimate a mineral resource and it is uncertain whether future exploration will result in the definition of a mineral resource. It has been estimated using a range of thicknesses for the mineralized sediments calculated from drill intercepts, surface sampling, and geological mapping. The grade estimates a range of values demonstrated from drilling and surface sampling.

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