A 3D image of the first and second geophysical zones which also include the proposed drill hole locations for 2019. These images are provided by SJ Geophysics.

The Top Ten

  • One of the larger salars in the world that is being drilled in 2019 with a 4,250 meter (14,000 feet) in 12 drill holes that started on May 24, 2019. The initial 5 drill holes did not reach the planned total depth to intersect their targets. The drilling program will resume in the fall of 2019 which may include re drilling of some of the five holes.
  • A large property covering a 103,430 hectare or 400 square mile salar.
  • All 83 geochemical surface samples taken over 80 kilometers had an average grade of 78 parts per million(ppm) lithium. 59 of these geochemical samples taken within the geophysical survey grid have an average grade of 86 ppm lithium that defines a geochemical anomaly covering 150 square kilometers. As surface samples, these results are anomalous.
  • The five geological conditions that are necessary to develop lithium brine are present at the Property, which include hot springs, a volcanic source rock containing lithium, fault structures, a closed basin (meaning that water does not escape the basin), and a regional volcanic heat source.
  • Initial geological analysis indicates an extensive and active structural environment including both north-south and lateral faults that are present throughout the survey area.
  • Geophysical survey results identified 3 large highly conductive zones that cover more than 54 square kilometers and may indicate the presence of brines.
  • Zone One may be more than 100 meters (300 feet) thick and zone three may be more than 200 meters (600 feet) thick.
  • The salar is estimated (based on prior gravity surveys) to be 8,000 feet deep at the western margin and could contain lithium-bearing aquifers that may be stacked to depth.
  • The Salar del Diablo is located 35 km from San Felipe, which is a regional service center that will likely reduce exploration and development costs. It also has a seaport that may be upgraded to ship product worldwide, including Asia.
  • The Salar del Diablo is about the same size and has similar geologic attributes as the Salar de Atacama, which has two lithium/brine produces with one of them, SQM that produces 27% of the world ‘s supply and has 15% of global reserves.
  • Salar del Diablo Lithium Property

    The Salar del Diablo is a 103,430-hectare (400 square mile) property that covers a large salar. The Property is located in the State of Baja California, Mexico.

    Approximately 14% of the property has been explored by geochemical sampling, a geophysical survey, geological mapping, and satellite imagery structural analysis. A time domain electromagnetic survey consisted of 80-line kilometers composed of 7 lines spaced two kilometers apart that covers 150 square kilometers.

    Geophysical Program
    Results to Date

    • The geophysical survey results defined three major conductive zones that could be indicative of brine, which cover more than 54 square kilometers. Two of the three zones extend beyond the limits of the geophysical survey and are open ended. In addition, two of the zones may be more than 300 and 600 feet thick.
    • Syd Visser, President of SJ Geophysics Ltd. noted “The survey’s objective was to delineate changes in conductivity that could represent conductive layers. The Salar del Diablo was considerably more conductive than expected. As in other salars in North and South America that are in production or advanced exploration, the conductive layers could represent saline brines, which may contain elevated concentrations of lithium.”

    The conductive zones identified by SJ Geophysics are:

    Zone Two: Light Blue

    • Surrounds Zone One;
    • Is less than 100 meters (300 feet) thick;
    • Is also very conductive with reading of 2.0 ohm.m which is the average value of readings that range from 1.5 ohm.m to of 5.0 ohm.m;
    • Covers 24 square kilometers, which includes Zone One in the center; and
    • Is open ended to both the north and south beyond the survey grid.

    Zone Three: Light Pink

    • Is a continuously conductive zone located beneath a resistive layer;
    • Is both east and west of Zone Two. Interpretation suggests the west side has likely been down faulted and may be originally related to Zones One and Two;
    • Is located at 300 meters deep at the south end and shallows to 200 meters as the overlying sediments decrease in thickness;
    • Is estimated to be 200 meters (600 feet) thick;
    • Is continuously conductive with ohm.m varying between 5 and 10 ohm.m; and
    • Is open ended to both the north and south off the grid.
    • Zone three covers more than 30 square kilometers

    Geochemical Program
    Results to Date

    • Over a distance of 80 kilometers, all 24 initial geochemical surface samples contained lithium with an average grade of 74 parts per million (ppm) lithium. Within the area of the geophysical survey, 59 additional samples have an average grade of 86 ppm lithium, which defines a 150 square kilometer lithium anomaly. For surface samples, these lithium grades are similar to some producing lithium brine deposits. The samples also assayed as high as 1.9% potassium, an average grade of 400 ppm boron, as high as 10,000 ppm cesium, and a low average grade of 1.3% magnesium.
    Sample Results_Page_1
    Sample Results_Page_2
    Samples 320 to 379 are the 59 samples referred to above

    Geological Results to Date

    A geological map has not been completed. However, evaluation of satellite data, known tufa mounds (relic hot springs) and outcrops indicate intra basin structures exist including faults in bedrock outcrop found outside the basin that trend into the Salar.

    There are north-south active faults and cross cutting linears that could be cross faulting throughout the basin and adjacent bedrock outcrops.

    There are two evident features:

    1) the geophysical Zone One appears to be constrained at the north and south ends of the survey area by a significant increase in cross faulting; and

    2) the cross faulting appears to dominate the east side of the basin and bedrock complex. These features suggest that conditions may exist to concentrate brines.

    USGS-defined five geologic attributes necessary to concentrate lithium in a brine are present at Salar del Diablo that are:

    • 1. a closed basin
    • 2. hot springs
    • 3. volcanic rocks enriched with lithium
    • 4. active faults that may allow for transport of lithium into the salar basin
    • 5. within a region of high heat flow.

    Drilling Program Results to Date

    All holes were drilled vertical, and because salar sediments are horizontal, all samples are believed to approximate true thickness. Sediment and rock samples were collected at approximately 6 meter intervals and when water-bearing zones were encountered water samples were collected.

    The water sample results contained nominal lithium results and of the 98 sediment samples taken all sediment samples assayed for anomalous lithium and potassium. Of the 98 sediment samples taken from the 5 drill holes the lithium grades ranged from a high of 273 ppm and a low of 7.3 ppm with an average of 47 ppm. For full drilling results see the Company’s news release of July 11, 2019 and July 25, 2019.