QUEBEC CITY, QUEBEC--(Marketwired - July 13, 2016) - Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") (TSX:NMX)(OTCQX:NMKEF) announces that it has begun a $1.5M budget definition drilling campaign for the Whabouchi project in the Eeyou Istchee James Bay region. The main goals of this program are to convert the existing in-pit inferred resource into measured and indicated, to add near surface resources in the east zone of the pit design as well as confirm continuity of further resources at depth below the 200 m level.
"Assuming we achieve our goals, this drill program will enable us to increase our open pit mine life, reduce the stripping ratio and lower the production cost of concentrate," said Guy Bourassa, President and CEO of Nemaska Lithium. "In addition to having a clearer idea of the full potential of the lithium resource at Whabouchi, this drilling program enables management as well as shareholders to fully value our project."
The drilling program, involving an anticipated 44 drill holes spread over 13,700 m, is expected to be completed in September 2016. The feasibility study titled: NI 43-101 Technical Report Feasibility Study Update on the Whabouchi Lithium Deposit and Hydromet Plant (Revised), covers mineral resources totalling 27.9 Mt with an average grade of 1.57% Li2O in the measured and indicated categories and 4.69 Mt with an average grade of 1.51% Li2O of inferred resources in an optimized pit with a 0.43% Li2O cut-off grade. The three main objectives of the drilling campaign are:
1. The potential conversion of 4.69 Mt of inferred resources, inside pit design, to indicated resources, representing a potential upgrade between 15 and 25% of resources that could be converted to reserves (that is, measured and indicated resources). This phase involves 5,900 m covering 22 drill holes. (See Fig. 1)
2. The second objective is to increase the level of confidence of mineral resources between 0 m and 200 m vertical from the surface. This phase would potentially make it possible to fill the East section of the longitudinal zone, which does not include any resources at the moment. A total of 17 drill holes over a 5,100 m surface area are expected to be drilled in order to meet this objective. This phase is expected to result in a potential increase block model volume between 20 and 35%. (See Fig. 2)
3. Finally, the drilling program aims to confirm the continuity of the longitudinal zone of mineral resources down to 500 m vertical depth, below surface. Five drill holes for a total of 2,700 m are expected to be drilled in order to meet this objective. This could potentially allow an increase between 30 and 45% in the longitudinal zone covered by the mineral resource model. (see Fig. 3)
The drilling campaign is supervised by Jean-Philippe Paiement, M.Sc. P. Geo, at SGS Canada Inc. Forage Rouiller has been chosen to carry out drilling. Samples shall be prepared by the SGS Canada Inc. laboratory in Quebec City and shall be analyzed by the SGS Canada Inc. accredited laboratory in Vancouver.
A QAQC program involving blank samples, standard samples and field duplicates shall be established during sampling. The work shall be carried out in accordance with CIM's mining exploration guidelines.
The technical parts of this press release were prepared by Jean-Philippe Paiement, M.Sc. P. Geo, at SGS Canada Inc., qualified person under Regulation NI 43-101.
About Nemaska Lithium
Nemaska Lithium intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles, cell phones, tablets and other consumer products. The Corporation is developing in Quebec one of the most important spodumene lithium hard rock deposit in the world, both in volume and grade. The spodumene concentrate produced at Nemaska Lithium's Whabouchi mine will be shipped to the Corporation's lithium compounds processing plant to be built in Shawinigan, Quebec. This plant will transform spodumene concentrate into high purity lithium hydroxide and carbonate using the proprietary methods developed by the Corporation, and for which patent applications have been filed.
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.