VANCOUVER, Jan. 23, 2018
/CNW/ - NRG Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ)
(OTCQB: NRGMF) (Frankfurt: OGPN), is pleased to provide an update
on drilling and development at the Company's recent lithium
discovery at the Salar Escondido Lithium Project ("Salar
Escondido"), Argentina.
As previously reported, the first hole was drilled to a depth of
307 meters. Samples were reported from 172 to 198 meters and
averaged 189 mg/l Li (lithium), 868 mg/l Mg (magnesium), and 3,170
mg/l K (potassium). A sample interval from 183 to 198 meters
returned 229 mg/l Li, 1,033 mg/l Mg, and 3,990 mg/l K. Further
samples were attempted, however, hole caving and fresh water
contamination from drilling fluids prevented the collection of
further representative samples.
The first hole at Salar Escondido has confirmed the presence of
significant lithium mineralization and provided important
information to guide the next phase of drilling and process
development. Most importantly, the results have confirmed the
target concept that Salar Escondido has the potential to host a
significant lithium deposit. Given the history of lithium
exploration at other salars in Argentina, the Company believes that the
potential to encounter higher grades at greater depths is
feasible.
In addition to discovering lithium in the first hole, another
positive characteristic of the basin noted during drilling is the
potential for high permeability. The material that hosts the brine
zone is comprised of mainly loosely consolidated sand and
conglomerates, which should be highly permeable and allow high
pumping and recharge rates. High permeability is an important
factor in evaluating the potential of lithium brine bearing salars.
The first drill hole ended in sediments so the thickness of the
basin remains open at depth along with the potential of these
sediments to host lithium bearing brine. The project size at 29,000
hectares, which is believed to cover a large portion of the basin,
allows for significant further exploration.
A request for quotation has been distributed to drill service
providers. Key management will be reviewing proposals and
conducting an on-site visit to both the Salar Escondido and Hombre
Muerto North lithium projects during this week. The phase I
drilling provided valuable information on the issues to be faced
drilling at Salar Escondido that will be applied to the Phase II
drilling.
The updated program will resume as soon as practicable utilizing
tricone or rotary drilling with perforated casing that will
facilitate sampling of the brine targets defined by the geophysical
surveys and our first test drill hole. The Company intends to
rapidly define the new lithium discovery at Salar Escondido.
Company President and C.E.O. Adrian
F.C.Hobkirk is quoted "we are excited to have made an
initial lithium discovery at Salar Escondido, and look forward to
further drilling at this site in the coming weeks".
Mr. William Feyerabend, a
Certified Professional Geologist and a Qualified Person under NI
43-101, supervised and approves the scientific and technical
disclosure contained in this press release.
NRG Metals Inc. is an exploration stage company focused on the
advancement of lithium brine projects in Argentina. In addition to the Salar Escondido
lithium project, the Company is evaluating the 3,287 hectare Hombre
Muerto North lithium project ("HMN") in the province of Salta. The
HMN is located at the northern end of the prolific Hombre Muerto
Salar, adjacent to FMC's producing Fenix mine and Galaxy Resources'
Sal de Vida development stage
project. The company has filed an environmental impact study with
the mining authorities in Salta
Province for permits to complete drilling, pump testing, and
evaporation test pond construction. Approval is expected
shortly.
The Company currently has working capital of $3.13 million dollars. The Company plans to use
its working capital to fund the ongoing exploration drill programs
at the Salar Escondido and HMN Projects.
NRG Metals Inc. currently has approximately 107 million shares
issued and outstanding, and trades on the TSX Venture Exchange
under symbol NGZ, on the OTC QB Market under symbol NRGMF, and on
the Frankfurt Stock Exchange under symbol OGPN.
The TSX Venture Exchange has not reviewed the content of this
news release and therefore does not accept responsibility or
liability for the adequacy or accuracy of the contents of this news
release.
This news release contains certain "forward- looking statements"
within the meaning of Section 21E of the United States Securities
and Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the Company, certain information
contained herein constitutes forward- looking statements. Forward-
looking statements are based upon opinions and estimates of
management at the date the statements are made, and are subject to
a variety of risks and uncertainties and other factors which could
cause actual results to differ materially from those projected in
the forward looking statements. The reader is cautioned not to
place undue reliance on forward-looking statements. The transaction
described in this news release is subject to a variety of
conditions and risks which include but are not limited to:
regulatory approval, shareholder approval, market conditions, legal
due diligence for claim validity, financing, political risk,
security risks at the property locations and other risks. As such,
the reader is cautioned that there can be no guarantee that this
transaction will complete as described in this news release. We
seek safe harbour.
SOURCE NRG Metals Inc