NEAR SURFACE SEDIMENT SAMPLE ASSAYING
RETURNS 692 PPM CESIUM AND 1,450 PPM LITHIUM
VANCOUVER, BC, March 9, 2022 /CNW/ - Monumental Minerals Corp.
("Monumental" or the "Company") (TSXV: MNRL) (FSE:
BE5) is pleased to announce that the Company has entered into an
arm's length letter of intent ("LOI") with Lithium Chile
Inc. ("Lithium Chile")
(TSXV: LITH) (OTCQB: LTMCF) to acquire up to 75% of the
5200-hectare Salar De Laguna Blanca
project (the "Laguna Project") located near the town of
San Pedro de Atacama, Chile.
The Laguna Project is located within the prolific lithium
triangle, a zone within the central Andes high desert that includes
Chile, Argentina, and Bolivia. This zone is estimated to contain
more than half of the world's lithium supply beneath the many salt
flats, also known as salars, that are common to the
region. The Laguna Blanca property consists of 23 exploration
concessions totaling 5,200 hectares, 100% owned by Lithium Chile
through its wholly owned Chilean subsidiary Minera Kairos Chile
Limitada ("Minera Kairos")
(Fig. 1). The Laguna Project includes both active and paleo salar
brines and salts (Fig. 2).
The Laguna Project is an early exploration stage project that is
accessible from the town of San
Pedro de Atacama, 80 kilometres to the west via the paved
road 27CH to the north end of Salar de Aguas Calientes then a truck
accessible trail heading north to the interior of the property.
Travel time from San Pedro de
Atacama to the property is approximately 1 hour and 30 minutes.
Between April 2018 and
June 2021 Minera Kairos completed
preliminary reconnaissance and detailed geochemical and geophysical
surveys:
- Lithium Chile reported the
results of a program of follow up sediment geochemical and surface
water surveys covered the bulk of the active salar - laguna complex
and adjacent paleo salts and sediments. Laboratory analysis of the
sediment samples range from 75 – 692 ppm cesium and 250 – 1,450 ppm
lithium. The results outline a large area of cesium enrichment of
about 9 km2, which is open to the NE and SE. Water
samples taken from the surface lagunas and subsurface samples from
shallow 0.5 – 1.3 m deep hand auger
holes range from 20 – 40 mg/l cesium plus 780 – 1,230 mg/l
lithium.
- A 13-line kilometer reconnaissance TEM geophysical survey cover
the active salar-laguna complex and its adjacent SW flank. This
survey identified a 10 km2 high conductivity TEM anomaly
having 100-200 m modelled thickness
that underlies the SW flank of the lithium – cesium anomaly.
- Bulk brine samples are currently being tested for lithium
extraction.
The Company and its Qualified Persons have been unable to verify
the historical sample collection methodology or analytical results
reported by Lithium Chile, but believe the historical results are
relevant and reliable. Future work by Monumental is planned,
including a site visit and verification sampling is required to
verify the historical results.
Jamil Sader, Monumental's CEO and
a Director comments:
"The Laguna Blanca lithium asset is a strategic acquisition
for Monumental Minerals and has the potential to become a
significant cesium-lithium deposit in the region. Lithium grades
determined to date are consistent with those from mines currently
in production in the region, and it has the added benefit of
potentially economic cesium, a critical metal necessary for 5G
communication. The Project is complimentary to the Company's
flagship Jemi heavy rare earth element project in Coahuila, Mexico, and the strength of these
two assets well position Monumental to take advantage of the global
shift of decarbonization, and to add significant value for
shareholders."
About Cesium
Currently, almost the entire global
cesium supply comes from the Tanco mine, a hard rock deposit in
Manitoba, Canada. The largest
consumer of cesium is the oil and gas exploration sector. Cesium
formate is added to drilling fluids to lubricate drill bits, to
bring rock cuttings to the surface, and to prevent blowouts in high
pressure wells. Cesium is also critical in the 5G communication
revolution, as it is critical in atomic clocks that keep vast
communication networks in sync for internet of things (IoT)
functions.
About Lithium
Over the past year, the spot price for
lithium has increased by over 550% (Fig. 3). The price of the metal
has out paced every other metal. The only other commodities with a
similar price appreciation trajectory are rare earth elements used
in the production of high-performance magnets for electric motors
(neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium
(Tb)). The driver for the lithium price explosion is widely
believed to be due to increases in demand for the manufacturing of
EV batteries, as automakers transition their fleets to EVs.
According to Adamas Intelligence, a record 25,921 tonnes of lithium
carbonate equivalent (LCE) were used to manufacture EV batteries
for passenger vehicles globally in December
2021.
About Critical Metals
The US government has identified
lithium and select rare earth elements (REEs) as critical metals,
and there is currently a strong push to curtail the US reliance of
these metals from sources that are not politically friendly. On
February 22, 2022, US President
Joe Biden announced government
financial incentives for both lithium and REE producers to develop
downstream processing and refining of REEs and lithium.
Additionally, a bi-partisan US senate bill recently passed, which
would make it illegal for US defense contractors to procure REEs
from China. Monumental Minerals is
positioned to play a significant role in lithium and REE stability
and sustainably in the Americas.
Terms of the Proposed Transaction
Subject to the execution of a definitive agreement
("Definitive Agreement"), Monumental will have the option to
earn-in up to a 75% interest in the Laguna Project by issuing to
Lithium Chile that number of common shares of Monumental that would
result in Lithium Chile holding, on a non-diluted basis (after any
potential financing in connection with or related to this potential
transaction), 9.9% of the issue and outstanding common shares of
Monumental (the "Payment Shares"). In addition, Monumental
must make certain staged cash payments to Lithium Chile and incur
exploration expenditures on the Laguna Project as follows:
- Make cash payments of an aggregate of C$1,500,000 according to the following schedule:
- $200,000 within fifteen (15) days
of final TSX Venture Exchange approval of this proposed transaction
(the "Acceptance Date");
- $250,000 on or before the
eighteen (18) month anniversary of the Acceptance Date;
- $300,000 on or before the second
anniversary of the Acceptance Date; and
- $750,000 on or before the third
anniversary of the Acceptance Date.
- Incur minimum expenditures on the Laguna Project of not less
than an aggregate of C$1,500,000
according to the following schedule:
- $200,000 on or before the first
anniversary of the Acceptance Date;
- $500,000 on or before the second
anniversary of the Acceptance Date; and
- $800,000 on or before the third
anniversary of the Acceptance Date.
Subject to the exercise of the option to acquire 75% of the
Laguna Project, Lithium Chile would retain a 1% net smelter returns
royalty payable upon the commercial production of the Laguna
Project. In addition to the statutory hold period of four months
and a day from the date of issuance, the Payment Shares will be
subject to a 12-month voluntary hold period from the date of
issuance. Upon Monumental earning a 75% interest in the Laguna
Project, Monumental and Lithium Chile will use commercially
reasonable efforts to negotiate and execute a joint venture
agreement for the purpose of jointly carrying out exploration,
evaluation and development of the Laguna Project.
Further details regarding the proposed transaction with Lithium
Chile will be provided in a comprehensive news release if, and
when, the parties enter into the Definitive Agreement. The proposed
transaction between Monumental and Lithium Chile is subject to,
among other things, the execution of the Definitive Agreement and
TSX Venture Exchange approval.
Methodology and QA/QC
All samples were reportedly
collected by Lithium Chile staff. Each salt and sediment sample
consisted of 1 -1.5 kg of unconsolidated material taken from 0.5 -
1.2m deep holes using a hand-held
auger that were bagged and sealed on site. All samples were
delivered by Lithium Chile's staff to the ALS prep-lab in La Serena
for processing. ALS subsequently shipped a 30g subsample to their
laboratory in Lima, Peru where
they were analyzed for 51 elements, including 2 lithium and cesium,
by the ICP-MS technique following Agua Regia digestion. Over limit
(>500ppm Cs) sample were re-run using the ICP-MS81 technique
following lithium borate fusion. ALS is an ISO-IEC 17025:2017 and
ISO 9001:2015 accredited geoanalytical laboratory and is
independent of the Monumental Minerals, Lithium Chile, Minera Kairos and the QP.
The Company and its Qualified Persons have been unable to verify
the historical sample collection methodology or analytical results,
but believe the historical results are relevant. Future work by
Monumental is planned, including a site visit and verification
sampling is required to verify the historical results.
Qualified Person
The scientific and technical
information contained in this news release has been reviewed and
approved by Kristopher J. Raffle, P.Geo. (BC)
Principal and Consultant of APEX Geoscience Ltd. of
Edmonton, AB, a Director of the
Company and a "Qualified Person" as defined in National Instrument
43-101 – Standards of Disclosure for Mineral
Projects.
About Monumental Minerals Corp.
Monumental Minerals
Corp. is a mineral exploration company focused on the acquisition,
exploration, and development of mineral resource properties in the
critical and electric metals sector. The Company's flagship asset
is the Jemi HREE project located in Coahuila, Mexico near the Texas, USA border which the Company has an
option to acquire 100% of the 3,650-hectare project. The
Company has an option to acquire a 100% interest and title to the
Weyman property located in the Kamloops and Nicola Mining Divisions and in
the Thompson Nicola Regional District, British Columbia.
On behalf of the Board of Directors,
/s/ "Jamil Sader"
Jamil
Sader, Chief Executive Officer and Director
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 news release.
Forward Looking Information
This news release contains "forward–looking information or
statements" within the meaning of applicable securities laws, which
may include, without limitation, the execution of the Definitive
Agreement, obtaining TSX Venture Exchange approval and completing
the proposed transaction with Lithium Chile, potential plans for
the Company's projects, other statements relating to the technical,
financial and business prospects of the Company, its projects and
other matters. All statements in this news release, other than
statements of historical facts, that address events or developments
that the Company expects to occur, are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in the forward-looking
statements. Such statements are based on numerous assumptions
regarding present and future business strategies and the
environment in which the Company will operate in the future,
including the price of metals, the ability to achieve its goals,
that general business and economic conditions will not change in a
material adverse manner and that financing will be available if and
when needed and on reasonable terms. Such forward-looking
information reflects the Company's views with respect to future
events and is subject to risks, uncertainties and assumptions,
including the risks and uncertainties relating to the
interpretation of exploration results, risks related to the
inherent uncertainty of exploration and cost estimates and the
potential for unexpected costs and expenses and those other risks
filed under the Company's profile on SEDAR at www.sedar.com. While
such estimates and assumptions are considered reasonable by the
management of the Company, they are inherently subject to
significant business, economic, competitive and regulatory
uncertainties and risks. Factors that could cause actual results to
differ materially from those in forward looking statements include,
but are not limited to, continued availability of capital and
financing and general economic, market or business conditions,
failure to secure personnel and equipment for work programs,
adverse weather and climate conditions, risks relating to
unanticipated operational difficulties (including failure of
equipment or processes to operate in accordance with specifications
or expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of government
approvals, industrial disturbances or other job action, and
unanticipated events related to health, safety and environmental
matters), risks relating to inaccurate geological
assumptions, failure to maintain all necessary government permits,
approvals and authorizations, fluctuation in exchange rates, the
impact of Covid-19 or other viruses and diseases on the Company's
ability to operate, an inability to predict and counteract the
effects of COVID-19 on the business of the Company, including but
not limited to, the effects of COVID-19 on the price of
commodities, capital market conditions, restriction on labour and
international travel and supply chains, decrease in the price of
rare earth elements, lithium, cesium and other metals, loss of key
employees, consultants, or directors, failure to maintain community
acceptance, increase in costs, litigation, and failure of
counterparties to perform their contractual obligations. The
Company does not undertake to update forward–looking statements or
forward–looking information, except as required by law.
SOURCE Monumental Minerals Corp.