GLOSSARY


Definitions, Geological Terms And Useful Conversions

 

1.  Anomaly

Something that deviates from what is standard or expected

For example, the standard or average lithium assayed 74 ppm but in a certain area, the average grade was 86 ppm is considered anomalous.

2.  Aquifer

An underground layer of water or brine bearing permeable rock, or unconsolidated material with the potential to be a pay zone for lithium bearing brines.

3.  Bankable feasibility study or report

When a bankable feasibility report or study is completed to 43-101 standards, it then allows a party to borrow a percentage of ongoing development costs from either a banking institution or an industry partner.   

4.  Basement

Basement is defined as rocks beneath a sedimentary platform. The basement is usually igneous or volcanic rocks.  At the Salar del Diablo, a gravity survey will determine the basements depth as well as its surface features, which is thought to be approximately 8,000 feet deep.

5.  Conversions

a.) Troy weight measurements – Troy weight is the traditional system of weight measurement in the British Isles.  It is based on the grain, pennyweight (24 grains), ounce (20 pennyweights), and pound.  Troy weights have been used since the Middle Ages to weigh gold, silver, and other precious metals and stones.

  • 1 pound = 12 ounces
  • 2.67 pounds = 32.151 ounces
  • 1 short ton = 2,000 pounds
  • 1,000 ppm = 0.1% = 2 lbs./short ton
  • 1 ounce = 31.1 grams

b.) Imperial or avoirdupois

  • 1 pound = 16 ounces
  • 2.2046 pounds= 1 kilogram = 1,000 grams

c.) Metric

  • Water has the density of 1 gram/ cubic centimeter (cm)
    • Brine has an approx. density of 1.1 gram/ cubic cm
    • 1 cubic meter of water = 1 metric tonne
    • 1 cubic meter of brine =  1.1 metric tonne
    • 1 gram in 1,000 milliliters = 1,000 ppm
  • A hectare is a unit of surface area measurement. One hectare is equal to 10,000 square meters.  
    •  One hectare is also equal to 2.471 acres.
    • 75,400 hectares = 754 square kilometers = 290 square miles1 cubic meter of water = 1 metric tonne
    • 640 acres = 1 square mile = 1 section
    • 36 sections = 1 township 

6.  Lithium carbonate

Lithium carbonate (LiCO3)is the product created by the evaporation of lithium bearing brines at the mine site. Lithium is 18% of lithium carbonate by weight. 

7.  Typical cost of producing lithium

  • in brine ………….may be $ 2,000 per ton of lithium carbonate or more
  • in  clay……………may be $ 3,500 per ton LiCO3 or more
  • in pegmatite …..may be $ 4,000 per ton of lithium carbonate or more

8.  Lithium deposits

A salar containing lithium ions in a saline brine formation, which also may contain potassium.  

A salar occurs in continental settings.

Other lithium brine sources are geothermal as well as oil field waste water containing lithium in a brine solution. 

Clay deposits are very fine grained sedimentary deposits, which sometimes contain the clay mineral hectorite, which contains both lithium and manganese in its atomic structure. The cost of separation will be high, albeit significant research is being done to develop new separation or replacement technologies which may lower the costs.

Pegmatite deposits are igneous or hard rock deposits that contain the lithium bearing mineral spodumene. They are the primary source of lithium. The deposits are open pit mines and the cost of producing lithium is high.

9.  Lithium hydroxide

Lithium hydroxide (LiOH) is preferred over lithium carbonate in the production of electric vehicles as lithium hydroxide can be more efficiently used in the battery’s cathode.   It is more expensive than lithium carbonate as a result.  In this regard, the producers of lithium carbonate can switch over to lithium hydroxide easily. 

10.  Magnesium

Magnesium is an element and number 12 on the periodic table. Its presence in brine can increase the cost of separating lithium, 1% is considered low and over 7% often makes separation too expensive for economical production of lithium. The average grade of magnesium at the Salar del Diablo is 1.3%.

11.  ohm

Ohms measure electrical resistance.  One ohm is a unit used to measure the electrical resistance of a material in a circuit that transmits electrical current of one ampere when subjected to a potential difference of one volt.  Lower resistance means a material has higher conductivity.  A rock formation with a resistance of one ohm is extremely conductive.   High conductivity may indicate the existence of rock formations that could contain saline brine, which could contain lithium.

12.  Open ended

Is when a formation of interest has not been explored laterally to find the end of the formation in one or more directions.

13.  Other definitions

  • CEO:  Chief Executive Officer
  • CFO:  Chief Financial Officer
  • COO:  Chief Operating Officer
  • CSE:  Canadian Securities Exchange
  • OTC:  Over the counter market – USA

Non brokered private placement is only offered to investors who meet an exemption qualification such as an accredited investor or being known to an Officer or Director of the Company.

14.  ppm (parts per million)

So, if a sample assayed 1,000 ppm that would translate to being 0.1% which would be 2 pounds per ton.  Typically, potentially economic lithium grades in brine are more than 300 ppm= 0.03% or .6 pounds per ton

15.  Reverse circulation drilling

Reverse circulation (RC) drilling uses dual wall drilling rods with the outer rod used to drill with a rotary bit and the inner rod is used to return chip samples to surface in a continuous flow.

RC drilling is considerably faster than diamond drilling, which provides considerable cost savings. 

After logging the hole, a potential pay zone can be isolated with packers above and below the zone to allow testing of any aquifers encountered to determine water chemistry, hydro-geological conditions including porosity, permeility, sustainable flow rates and pumping conditions, etc.

16.  Rhyolitic tuff source rock

Rhyolite is produced by volcanoes or volcanic activity that can be an explosive event throwing rhyolite particles in the air that subsequently settle as volcanic ash, breccia, or other igneous rocks which are known as tuffs. 

17.  Salar

A salar is a Spanish word for a salt flat.  It is a dry lake in a desert environment where incoming water including rain evaporates faster than the water inflows.  A salar also represents a closed basin, which means there is no drainage out of the salar.  After evaporation what remains is salt and a variety of minerals.

18.  Satellite imagery

High resolution pictures taken from satellites to identify geological features including structures, faults, cross faults, and linear features.

19.  Time domain electromagnetic survey

The Volterra time domain electromagnetic survey (TDEM) is a moving loop survey to identify changes in conductivity in underlying rocks to delineate the conductivities of various rock units.  TDEM has successfully been used to identify highly conductive zones that may be brine aquifers that could also contain elevated concentrations of lithium.  

20.  Working and carried property interests

A working interest defines the percentage of program costs one party is funding to earn or maintain a property interest while a carried interest defines the percentage of the property interest that pays no costs.  For example, One World Lithium Inc paid 100%of the costs and earned a 60% property working interest, leaving the property owner (Energy Metals Discovery Group), a 40% carried property interest.  On completion of the initial drilling program, One World Lithium will have earned an additional 20 property interest for a total of an 80% property working interest.

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John E Hiner, a Registered SME Member and a Qualified Personas defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this glossary.