Vancouver, British Columbia – Bearing Resources Ltd. (“Bearing” or the “Company“) (TSX Venture: BRZ) has received results from Li3 Energy Inc (“Li3”) from the pump tests at the Maricunga lithium brine project located in Chile (the “Maricunga Project”). Bearing has entered into a definitive agreement to acquire Li3 and its interest in the Maricunga lithium brine project (the “Li3 Definitive Agreement”).. Li3 holds a 17.7% interest in the project along with Minera Salar Blanco (“MSB”) and Lithium Power International Limited (“Lithium Power”) at 32.3% and 50% respectively. Under the terms of the joint venture, Lithium Power has agreed to fund exploration and development costs with both Li3 and MSB having a free carry until the completion of a definitive feasibility study.
Pump Test Results
A well drilled on the “old code” Cocina tenement was completed and pump test results initially released by Lithium Power on December 22nd, 2016. Pump testing from well P4 was drilled down to a depth of 180 metres and recorded an initial brine flow rate at 25 litres per second (“l/s”). According to Lithium Power, during drilling P4 intersected an upper brine aquifer from surface to 66m depth, comprising salt (halite), clay, silt, sand, and minor gravel units. From 66m to 180m depth, a more porous aquifer exists, comprising a mix of mainly sand and gravel. Pump testing of well P4 is targeting the aforementioned more porous aquifer. Final results from a 30-day pump test are anticipated shortly.
Initial flow rates from the pump testing are very encouraging as they rank amongst the highest reported values from other projects in South America (c.f Table 1).
Jeremy Poirier, President and Chief Executive Officer of the Company commented: “We are highly encouraged by the exceptional flow rates delivered from both recent and historical testing on the project. High flow rates and high grades are two drivers of attractive lithium brine economics, both of which reinforces the Maricunga project as one of the most prospective undeveloped lithium projects in South America.”
Drilling was by rotary drilling that provide cuttings for lithological logging and for geological interpretation. Brine samples were collected at 6 m intervals during drilling. This involved purging brine from the drill hole and then taking a sample corresponding to the interval between the rods and the bottom of the hole. The brine sample was collected in a clean plastic bottle and filled to the top to minimize air space within the bottle. Brine samples collected following the purging of the holes are homogenized as brine is extracted from the hole using a bailer device. Each bottle was taped and marked with the sample number and details of the hole and the time of the sample were noted. The University of Antofagasta in northern Chile was used as the primary laboratory to conduct the assaying of the brine samples collected as part of the drilling program. They also analyzed blanks, duplicates and standards, with blind control samples in the analysis chain. Additional details of the QA/QC program and sampling procedures are provided in the Lithium Power press releases mentioned.
Pumping test data is continuously monitored via a fluid flow meter at the well head and a series of piezometric wells and monitoring wells spaced at appropriate intervals from the well to measure fluid drawdown both in the upper aquifer and the target aquifer. Data are collected by data loggers and by daily manual inspection. Brine discharge is also monitored using a V-notch weir located approximately 1,200 metres from the well. Brine samples are collected daily from the V-notch discharge to assay variations in brine chemistry over the duration of the pump test. The assay procedures for the pump test samples are the same as for the brine samples collected from drill holes.
Don Hains, P.Geo., who is a technical consultant to the Company and is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
About Bearing Resources Ltd.
Bearing is an exploration and development company. The Li3 Definitive Agreement will enable it to acquire an interest in the advanced-stage Maricunga project located in Chile, which represents one of the highest-grade development opportunities in the Americas. Assuming completion of the transactions contemplated by the Li3 Definitive Agreement, Bearing will have an undivided 17.7% interest in the project with all expenditures through to the delivery of a Definitive Feasibility Study (DFS) fully-funded by its joint-venture partners. The Maricunga Project has had in excess of US$25 million of exploration to date.
ON BEHALF OF THE BOARD
Signed “Jeremy Poirier”
Jeremy Poirier, Director President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier– President and CEO Bearing Resources – Telephone: 1-604-262-8835
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
This press release includes certain “forward-looking information” and “forward-looking statements”(collectively “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. Forward-looking statements in this press release relate to, among other things: completion of the transactions contemplated by the Li3 Definitive Agreement, the benefits of the proposed transaction with Li3 to shareholders of Bearing . Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: completion of satisfactory due diligence by each of Bearing and Li3, , the absence of a material adverse change in the Maricunga Property and the receipt of all necessary regulatory and shareholder approvals to complete the proposed transaction with Li3 . Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, Bearing does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.