HLM Announces an Upgraded NI 43-101 Resource Estimate for the PAK Lithium Project in Ontario, Canada
(TSX.V: HLM), is pleased to report a Canadian National Instrument (N.I.) 43-101 mineral resource estimate for the PAK Lithium Project, located in northwestern, Ontario. The resource estimation has been prepared by WSP Canada Inc. (TSX: WSP), a Montreal-based firm. WSP is one of the largest engineering firms in Canada and has a mining division maintaining independent consulting geologists and engineers.
- Measured and Indicated mineral resource of 7.89 million tonnes grading at 1.73% Li2O equivalent (eq)., including 6.87 million tonnes grading 1.96% Li2O eq. in high quality technical grade lithium zones with a low inherent iron spodumene;
- Inferred mineral resource of 295,600 tonnes grading at 1.35% Li2O (eq.), including 228,700 tonnes grading 1.69% Li2O eq. in technical grade lithium zones with a low inherent iron spodumene;
- A 206% change increase in measured and indicated Li20 eq. contained tonnes from the 2015 Resource Estimate;
- The Pakeagama Lake pegmatite has a 500m strike length with an estimated true width varying from 10 to 125m with a sub-vertical orientation of the pegmatite, and;
- Resource remains open to depth and along strike to the northwest and southeast.
- Based on exploration costs, the PAK deposit exhibits a low Measured and Indicated lithium acquisition cost at $21.66/contained Li2O eq. tonne for exploration.
“We are extremely pleased with the results of our upgraded resource estimate since there are definitely analogous features to the high grade, multi-element, and large tonnage of the prolific Tanco pegmatite in southeastern Manitoba(1),” commented Trevor R. Walker, President of HLM. “With the deposit exposed at surface, this report also confirms with confidence that the Pakeagama Lake pegmatite’s lithium mineralization is wide, high grade, continuous and consistent, persisting at depth, and with tantalum and possibly rubidium and cesium byproducts. Furthermore, we are happy to report that development work, including metallurgical and environmental baseline studies have been underway for the preparation of pre-feasibility which is targeted for completion by the end of March 2017.”
The original size of the Tanco pegmatite was 57,427,342 tonnes with a maximum thickness of 100m (Stilling, A., Cerny., P., and Vanstone, P.; , The Tanco Pegmatite at Bernic Lake, Manitoba. , XVI. Zonal and Bulk Compositions and Their Petrogenetic Significance. The Canadian Mineralogist; Vol. 44 pp. 599-623). The UIZ, CIZ and LIZ units at the Pakeagama Lake Pegmatite have striking similarities in mineralogy and chemical composition to those at the Tanco deposit. The bulk chemical composition for Li2O and Ta2O5 was 0.74% and 366ppm, respectively at Tanco. The Tanco Mine is located in southeastern Manitoba and was a lithium mineral concentrate producer from 1986 until operations were suspended in 2009. Tanco was also a tantalum mineral concentrate producer until March 2013 when operation of this circuit ceased.
Li2O equivalent was determined based on lithium and tantalum grades, prices ($400 per tonne of 6% spodumene concentrate and $150 per kg of 30% tantalite concentrate) and their respective recovery ratio (78.5% recovery for lithium and a 50% recovery for tantalum from bulk pegmatite). No credit was included for rubidium, cesium or any of the other elements contained for the purpose of this report.
Li2O content in the CIZ is predominantly associated with lithian micas and without metallurgical testing not deemed recoverable, therefore, not included in the Li2O contained and subsequently the Li2O equivalent calculation for the purpose of this report.
The UIZ and LIZ are technical/ceramic-grade lithium zones (high-grade lithium with low inherent iron (0.1% Fe2O3 from whole rock analysis). The iron content of spodumene contained within the LIZ increases as the contact with iron-rich metasedimentary country rocks are approached, but it has been noted that a concentration below 0.1% wt.% Fe2O3 is maintained to within about 10 meters of the pegmatite-metasediment contact.
Without further metallurgical testing it is unknown if the Rb2O is recoverable from the Lithium zones (UIZ, LIZ). For the purpose of this report, Rb2O credit has not been considered in any of the zones.
(6A) Calculation is based on 4,693m of drilling in 24 holes to an average depth of 150m vertical in the deposit, 294m of production drilling for 68 blast holes for the 300 tonne UIZ bulk sample in 2015, and 22 channels covering 191m at surface.
(6B) Mineral Resources are not Mineral Reserves having no demonstrated economic viability. Results are presented undiluted and in situ.
(6C) Indicated and Inferred Resources were evaluated from drill hole and channel sample results using a block model approach (inverse distance squared interpolation) with Geovia/Surpac software.
(6D) Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are rounded to 100,000 except Ta2O5 contained that are rounded to the nearest tonne. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.
The Mineral Resources for PAK Rare Metals Project disclosed in this news release have been estimated by Mr. Todd McCracken, P.Geo., an employee of WSP and independent of HLM. By virtue of his education and relevant experience, Mr. McCracken is “Qualified Person” for the purpose of National Instrument 43-101. The Mineral Resource has been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, (November 2010). Mr. McCracken, P.Geo., has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.
Mr. Peter J. Vanstone, P.Geo., is an independent “Qualified Person” to HLM defined under NI 43-101 and has reviewed and approved the technical information contained in this news release.
HLM is also reporting that it has received a positive response from one creditor concerning a “Shares for Debt Financing”. HLM proposes to issue up to 154,942 common shares at a price of $0.155. The financing is subject to regulatory approval and would have a hold period of four months.
$24,016 of debt is owed to a company owned by one “non-arm’s length” individual. The non-arm’s length portion of the proposed financing is therefore 154,942 common shares at a price of $0.155 per share.