RECHARGE RESOURCES ENCOUNTERS LITHIUM BRINE ZONE AND ADDS ADDITIONAL WELL TO PRODUCTION DIAMETER DRILL PROGRAM AT POCITOS 1 WITH NI 43-101 REPORT PREPARATION NOW UNDERWAY
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RECHARGE RESOURCES ENCOUNTERS LITHIUM BRINE ZONE AND ADDS ADDITIONAL WELL TO PRODUCTION DIAMETER DRILL PROGRAM AT POCITOS 1 WITH NI 43-101 REPORT PREPARATION NOW UNDERWAY
Vancouver, BC, Nov. 17, 2022 (GLOBE NEWSWIRE) -- Recharge Resources Ltd. (“Recharge” or the “Company”) (RR: CSE) (RECHF: OTC)(SL50: Frankfurt) is pleased to announce the Company’s production diameter well drill program at its “Pocitos 1” Salar Lithium Brine Project in Salta, Argentina encountered a brine zone at the 168 meter level. The drill is now at the 296 meter level and will be using the packer sample tool to sample the multiple target production zones between the levels of 300 and 425 meters.
The Company’s QP and Project Geologist, Phil Thomas, has now begun preparing the basis for the NI 43-101 report after setting up the drill program in Argentina when he was there in November in preparation to measure flow rates and assays to create the anticipated NI 43-101 compliant report. Phillip Thomas, BSc Geol, FAusIMM MAIG, has spent the past 22 years exploring for lithium brines, including building and operating a pilot plant for production at Rincon Salar (sold to Rio Tinto for $825 Million) as well, he and his team developed the Pozuelos salar, producing an indicated and inferred resource from four exploration wells. (recently sold to Ganfeng for US$962 million).
The Company further announces it will extend its drill program and will drill an additional well or wells at the Pocitos 1 Project and has applied for up to 6 additional wells. As planned, the Company has encountered lithological units containing brines that were sampled with a double packer and is now about to enter the lithological aquifer units previously encountered by A.I.S. Resources in 2018. With sampling about to begin, confirming the Company’s thesis of extending the 2018 drilling for the preparation of a NI 43-101 report in order that the company may move the project to indicated, and measure mineral resource, a proven and probable mineral reserve and subsequently a scoping and further feasibility study. The QP has arranged for samples will be sent to two laboratories, with duplicates and standards for QA/QC and 600L to Ekosolve Ltd. to process and extract the lithium from the brine and provide a report on the recoveries and purity achieved.
Phillip Thomas, Project Geologist, stated “This is a pivotal time for the Pocitos 1 Salar Project with the drill rig about to enter the target production zones. This will be the 4th resource estimation project I have been involved with to delineate a lithium deposit and I am very keen and excited to see this project through to the vision I had for it back in 2018.”
This is another planned milestone in the Company’s endeavour to build up to a 20,000 tonne lithium extraction plant at Pocitos 1 in order to supply clients, Richlink Capital Pty Ltd., up to 20,000 tonnes of lithium per year as previously announced under a letter of intent and framework agreement.
Lithium is selling in the spot market at 597,500 Yuan per tonne or the equivalent of US$84,512 per tonne according to TradingEconomics.com. (November 17th, 2022)
Figure 1. Recharge Resources Team Members and Investors at Drill Pad awaiting drill arrival
Figure 2. Drilling commences at Pocitos 1
Figure 3. Pocitos Salar with gas, power and rail to Antofagasta, Chile Port
Figure 4. Drilling continues at Pocitos 1 Lithium Brine Project – Phil Thomas, QP on site
Recharge team members were on site at the Pocitos 1 Project to see drill rigs arrive for the funded 400-meter exploration and then production diameter well campaign to confirm flow rates, lithium content and continuity of lithium brines flow delineated during previous drill campaigns toward the establishment of a NI 43-101 compliant resource and scoping studies for the development of up to 20,000 tonne per year Ekosolve™ production facility. A Argentine consultancy has been made progress on the base line environmental study and importantly the hydrological study to responsibly pump and discharge the lithium deficient brine from EkoSolve™ process which is a major issue environmentally and the preparation puts Recharge Resources in excellent standing. The Ekosolve process using 150L water per 1,000 tonnes of Lithium carbonate so it is exceptionally water usage efficient.
The high flow rate was encountered in both holes drilled in 2018. This high flow rate is expected to result in reduced operational costs in a reduction of number pumps and lines required, as well as ensuring the columns have sufficient brine with the Ekosolve™ extraction methodology contemplated for the Pocitos 1 project.
CEO and director, David Greenway states, "We are ecstaticto have encountered brine soaked lithological units and be about to begin sampling of the target production zones which was the focusof this drill program. With three existing discovery drill holes in place from 2022 and 2018, this new drillingwill contribute to establishing a NI 43-101mineral resource estimate with our ultimate goal of moving this project forward to being a next significant producer of lithium in Argentina.We continue to be thankful all those that have assisted us in bringing this project to this stage and look forward to continuing the path forward to the benefit of all stakeholders including the community of Pocitos, stakeholders of Recharge Resources and our growing team in Australia, Argentina, USA and Canada.”
About Pocitos 1 Lithium Brine Project
The Pocitos Project is located approximately 10km from the township of Pocitos where there is gas, electricity, and internet services. Pocitos 1 is approximately 800 hectares and is accessible by road. Previous exploration teams have spent over USD $1.5 million exploring the project, including surface sampling, trenching, TEM geophysics and drilling two 400m holes that had outstanding brine flow results. Locations for immediate follow up drilling have already been designed and identified for upcoming exploration.
Lithium values of up to 125 ppm from Laboratory analysis conducted by Alex Stewart were recorded by A.I.S. Resources Ltd (“AIS”) during the project’s first drill campaign in May 2018. AIS used a double packer sampling system in HQ Diamond drill holes drilled to a depth of 409 metres. The flow of brine was observed to continue for more than 5 hours. Both drill holes had exceptional brine flow rates. Recharge's plan is to drill a third production ready drill hole to work towards a NI 43-101 mineral resource calculation.
Phillip Thomas, BSc Geol, MBusM, FAusIMM, MAIG, MAIMVA, (CMV), a Qualified Person as defined under NI43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr Thomas is independent of the company and neither he or his associated companies hold any shares or interest in Recharge Resources Limited.
Stock Option Grant
In line with the Company’s previously announced 6-month marketing and consulting contract with Toronto based marketing firm, North Equities Corp., the Company has issued an additional 135,000 stock options to North Equities, exercisable at a price of $0.375, and valid for a one-year term.
About RechargeResources
Recharge Resources is a Canadian mineral exploration company focused on exploring and developing the production of high-value battery metals to create green, renewable energy to meet the demands of the advancing electric vehicle and fuel cell vehicle market.
All Stakeholders are encouraged to follow the company on its social media profiles on LinkedIn, Twitter, Facebook and Instagram.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding Recharge’s intention to continue to identify potential transactions and make certain corporate changes and applications. Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Recharge will obtain from them. These forward-looking statements reflect managements’ current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including Recharge’s results of exploration or review of properties that Recharge does acquire. These forward-looking statements are made as of the date of this news release and Recharge assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance with applicable securities laws.
