Mavis Lake Lithium Joint Venture Project, Ontario, Canada
Vancouver, B.C. June 22, 2016 International Lithium Corp. (the “Company” or “ILC”) (TSX Venture:ILC.V) is pleased to announce that the Company and strategic partner Pioneer Resources Limited (“Pioneer”) (ASX:PIO) has exercised an Option Agreement to advance an exploration program on the Company’s Mavis Lake Lithium project in Ontario, Canada (“Project”) (see Company news release March 14 and April 20, 2016).
- Mavis Lake Lithium Project Option Agreement executed with Pioneer;
- Pioneer may earn an initial 51% interest in the Project by expending CAN$1.5 million on exploration activities within three years;
- Exploration personnel on-site with field programs to include a comprehensive ground magnetic survey, litho- and soil geochemistry surveys to highlight prospective pegmatite targets in preparation for a diamond drill programme;
- Field reconnaissance at the spodumene bearing Pegmatite 18 prospect has confirmed the observable strike length in excess of 200m at surface has yet to be drill tested.
2016 Mavis Lake Project Exploration Programme
Company field personnel are currently on site and have commenced the first phase of the 2016 exploration programme at the Mavis Lithium Project, with additional field support from Coast Mountain Geological and members of the Wabigoon Lake Ojibway Nation.
The first phase exploration programme will be comprised of ground magnetic, lithogeochemistry and soil surveys and are scheduled for completion in July 2016.
Ground Magnetic Surveys are useful to identify blind, near-surface pegmatite emplacements. Pegmatites typically have low magnetic susceptibility that is a distinctly identifiable characteristic especially in contrast with the dark mafic metavolcanic host rocks at Mavis. The magnetometer survey will be highly detailed, taking continuous readings along lines spaced 50 meters apart. Up to 250 line kms are planned and will provide the first property-wide magnetic survey of the Project area utilizing the most up to date technology.
Litho-geochemical surveys are utilized to identify the rare metal dispersion corridors within the host rocks adjacent to or capping buried or hidden rare metal pegmatites. Normally the rare metal alteration halo of the host rocks in contact with pegmatites is in the meter scale, but unique to the pegmatite belt at Mavis, the host rocks exhibit a rare metal dispersion halo well into the tens of meters. This significantly widens litho-geochemical targets; therefore, this type of survey at Mavis is anticipated to be highly effective in identifying corridors that host pegmatites buried under soil cover or near-surface, blind pegmatite bodies.
Soil geochemistry surveys are useful where there is limited outcrop to perform a litho-geochemical survey and are intended to identify rare metal dispersion halos associated with pegmatite emplacement as expressed in the overlying soils.
The field surveys in combination with prospecting and mapping are intended to identify high priority targets for a subsequent drill programme. The Company has realized significant success, particularly at the Company’s Avalonia Project in Ireland, in developing and employing this multilayered field survey approach to pegmatite exploration.
Recently, field reconnaissance at the Mavis Lake project spodumene bearing Pegmatite 18 prospect has confirmed the observable strike length, in excess of 200m at surface, has yet to be drill tested and clearly represents a high priority drill target.
The highest lithium values on the Mavis Lake Property occur in albite-spodumene-type pegmatites such as Pegmatite 18. Historical sampling on the Pegmatite 18 prospect by the Company has returned grab samples grading up to 3.14% Li₂O* and one composite channel sample across part of Pegmatite 18 grading 1.22% Li₂O* over 5.3m (documented in the Company’s 2009 Ontario Work Assessment Report and NI43-101 technical report dated February 5th, 2010 respectively).
*Note: Grab samples are by definition selective, should not be relied on and are unlikely to represent average grades on the property. Reported channel sample widths may not represent true widths of the pegmatite.
Dependent upon the completion of the above programmes and obtaining regulatory approvals drilling is likely to commence in September. A drill programme totalling 1,500m of diamond drilling is contemplated and is intended to follow-up key spodumene intersections from earlier drilling and sampling campaigns with an allocation for new targets.
Mavis Lake Option Agreement
Under the terms of the Agreement Pioneer can earn up to an 80% interest in ILC’s 100% owned Mavis Lake property, which includes the Fairservice patented mining leases (the “Mavis Lithium Project”), located near Dryden, Ontario, Canada.
The key terms of the Option Agreement:
- Pioneer may earn an initial 51% interest in the Project by expending CAN$1.5 million on exploration activities within three years and paying to ILC a total of CAN$375,000 in cash and shares 50/50 over the same three years (the “First Earn-in”).
- Following the First Earn-in, ILC will be granted a 1.5% Net Smelter Return royalty (“NSR”), purchasable at any time for CAN$1.5 million.
- Pioneer will then be granted, if they choose, a Second Option where they can earn an additional 29% through expending CAN$8.5 million within seven years (total CAN$10 million over ten years). Thereafter the Parties will contribute on a pro-rata basis. If either Party dilutes to 15% Project Equity, their interest is converted to a 1.5% NSR.
About Mavis Lithium Project
Key factors that make the Mavis Lithium Project attractive are its location and established infrastructure. Situated only 19 kilometres from the town of Dryden, Ontario and approximately 300 kilometres via the Trans-Canada Highway to Thunder Bay, an industrial centre in Ontario. Rail and power access are also readily available as well as a skilled workforce, experienced in sustainable natural resource development. The claim blocks comprise a total of 2,624 hectares and straddle a continuous pegmatite field exhibiting high-grade, well-evolved, lithium and tantalum zonation as well as significant levels of caesium and rubidium.
John Harrop, P.Geo, FGS, is a Qualified Person as defined under NI 43-101 and has supervised preparation of the technical information contained in this news release.
About International Lithium Corp.
International Lithium Corp. is an exploration company with an outstanding portfolio of projects, strong management ownership, robust financial support and a strategic partner and keystone investor Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.
The Company’s primary focus is the Mariana lithium-potash brine project, a joint venture with Ganfeng Lithium Co. Ltd. within the renowned South American “Lithium Belt” that is the host to the vast majority of global lithium resources, reserves and production. The 160 square kilometre Mariana project strategically encompasses an entire mineral rich evaporate basin that ranks as one of the more prospective salars or ‘salt lakes” in the region.
Complementing the Company’s lithium brine project are three rare metals pegmatite properties in Canada known as the Mavis, Raleigh, and Forgan projects and one in Ireland (Avalonia project). The Avalonia project is under option to strategic partner Ganfeng Lithium and the Mavis project with strategic partner Pioneer Resources Limited (PIO:ASX). The Mavis, Raleigh and Forgan projects together form the basis of the Company’s newly created Upper Canada Lithium Pool designated to focus on acquiring numerous prospects with previously reported high concentrations of lithium in close proximity to existing infrastructure.
With the increasing demand for high tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow’s “green-tech”, sustainable economy. By positioning itself with solid development partners and acquiring high quality grass roots projects at an early stage of exploration, ILC aims to be the resource explorer of choice for investors in green tech and build value for its shareholders.
On behalf of the Board of Directors,
President, International Lithium Corp.
Neither the TSX Venture Exchange 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. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. News release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.