The 100% Mariana project, a lithium-potash salar, consisting of several contiguous mining claims covering an expansive 160 km2 project area, strategically encompasses the entire salar and a significant portion of the surrounding area to provide prospective land for a potential future processing plant facility. Salars, or salt lakes, host some of the largest known lithium resources in the world and the Mariana basin is one of the more prominent salars in the renowned lithium belt of South America that produces more than 70% of global production.
Initial surface brine sampling revealed highly compelling geochemistry reporting average grades of 440 mg/L lithium and 12,700 mg/L potassium. The potassium levels were unexpected and represent one of the highest grades comparative to any of the neighbouring salars outside of the world class operation on the Atacama salar in Chile.
The Company recently completed a reverse-circulation Phase 1 resource delineation drill program on the Project. Four (4) widely spaced drill holes (totaling 444 metres), were positioned approximately 5 km apart to characterize the subsurface strata and brine across several previously identified geological and geochemical domains within the 10 x 15 km salar (salt lake) basin. In addition, the objective was to add to the geological model of the salar and determine the aquifer potential of the stratigraphy encountered.
As expected, the upper stratigraphic interval was primarily halite varying in depth from 18 to 32 metres in the peripheral areas (hole MA12-04 in the south, MA12-05 in the north and MA12-06 in the western region of the salar) and 66 metres depth in hole MA12-07 proximal to the center of the salar. Below this predominantly halite layer an extensive mixed evaporite layer approximately 32-52 meters thick, consisting of greater than 60% fine to coarse sand, was encountered in the three peripheral holes. Below the evaporite sequences in all holes an extensive medium to coarse grained, dark coloured, basaltic sand interval was encountered. Brine flow measurements recorded during drilling increased markedly below the halite sequence throughout the sand rich layers.
Unconsolidated stratigraphic units with a significant granular or sand component possess physical characteristics that allow them to maintain a higher degree of permeability and porosity at greater depths than halite (salt) units. Consequently, they represent a potential aquifer for hosting brine at depth and are an important target in the lithium-potash brine exploration model. The measured brine densities, ranging from 1,190 to 1,298 g/L, reflect a considerable quantity of dissolved salts, approximately 10 times the salinity of seawater. All brine samples have been delivered for analysis. Results are pending and when received and reviewed will be released in entirety.
Subsequent to completion and analysis of results, a more extensive Phase 2 drill program will be planned that will focus on the priority areas of the salar identified through the current program. The objective of the Phase 2 drill program will be to continue to delineate and characterize both the geochemistry and hydrogeology of the salar in support of an Inferred Resource estimate targeted for late 2012.
