MINERAL RESOURCE EXPLORATION PROGRAM UPDATE
- Sigma announces positive results from its Exploration
Program of Phase 4.
- Expected to represent an approximate 25% potential increase of
mineral resource estimate of Sigma Lithium to 110 million tonnes,
placing it amongst the largest scale lithium companies
globally.
- The Company expects to further increase mineral resource
resulting from an Accelerated Plan to drill a Phase 5 and
beyond.
- Exploration programs to date have identified up to 20Mt of
potential additional mineral resource in a spodumene bearing
pegmatite, which could represent a potential Phase 5.
- Accelerated Plan is expected to
unlock significant further potential increase to the
Company mineral resource, with additional exploration
drilling of the following targets:
- Remaining five former artisanal mines within Sigma Lithium's
mineral concessions
- Another 57 out of the 200 mapped pegmatites within the
Company's mineral concessions.
SAO
PAULO, Nov. 1, 2023 /CNW/ -- Sigma Lithium
Corporation ("Sigma Lithium" or the "Company")
(NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML), a leading
global lithium producer dedicated to powering the next generation
of electric vehicles with carbon neutral, responsibly sourced
chemical grade lithium concentrate, is pleased to provide an update
on its exploration program to date, conducted in close coordination
with SGS Canada, including initial mineral resource potential for
Phase 4 ("Exploration Program") and plans for acceleration of the
Exploration Program ("Accelerated Plan").
The Company expects the results of the Exploration Program could
represent an increase of its total mineral resource estimate to
110 Mt:
-
- The Company increased the exploration potential of Phase 4 to
approximately 26 to 30Mt, with ore body extensions continuing to
the east, based on the drilling results received to date (Table 1
below).
- This is a significant 25% potential increase to the Grota
do Cirilo mineral resource estimate, delivering further consistent
high grade assay results which are to be incorporated into an
updated NI 43-101 compliant technical report expected to be
released in Q4 2023.
Please refer to the Company's National Instrument 43-101
technical report titled "Grota do Cirilo Lithium Project Araçuaí
and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
issued June 12, 2023 ("Technical
Report"), filed on SEDAR and available on the Company's
website.
-
- The Technical Report has a mineral resource estimate comprised
of 77.0 Mt of measured and indicated mineral resources grading
at 1.43% Li2O and 8.6 Mt of inferred mineral resources grading at
1.43% Li2O.
Ana Cabral, CEO commented:
"The incredible success of our exploration campaign establishes
Sigma Lithium as one of the largest lithium companies globally.
Sigma is a current large-scale and low-cost producer but also has
mineral resource estimates to potentially surpass 110 million
tonnes of open pit deposits. This scale underscores our strategic
relevance to become the foundation of global supply chains that
will deliver the decarbonization of EV batteries.
"We consistently execute and deliver and by unlocking the NI
43-101 compliant mineral resource potential of the former artisanal
mines in our mineral concessions, we are validating and closing the
gap between the large scale of mineral resources registered within
our mineral concessions in our regulatory body, ANM in Brazil and the NI 43-101," she
concluded.
Significant Further Potential to Increase Mineral
Resource
The results to date indicate that a further potential increase
to the Company's mineral resource is expected to be delivered
consistently over time from the following exploration drilling
campaigns in an Accelerated Plan:
- Remaining five former artisanal mines within Sigma Lithium's
mineral concessions to define the volumes and grades.
- Additional 57 pegmatites (out of the approximately 200
pegmatites mapped) within the Company's mineral concessions.
Phase 4 Exploration Program Update
Phase 4 was centered on the Murial South and Lavra do Meio
deposits. Both could be mined as an open pit, if warranted and
economically viable based on a Feasibility Study.
- The Exploration Program has significantly increased the size
of Murial and Lavra do Meio deposits to potentially 23 to 26
Mt.
- The Company validated additional pegmatites: Maxixe and
Tamboril, further increasing the total mineral resource
potential.
Phase 4 strike extends up to 2.3 km along strike north-south,
and the deposits remain open to both the east and west.
- Phase 4 is in very close proximity to Phase 3 (north of it) and
initial drilling indicated potential connectivity of certain
pegmatites (as per the Figures 1 and 2 below); and
- Intersecting high quality spodumene crystals and persistent
spodumene-rich zones (Table 1 below)
The maiden resource statements for Murial South and Lavra do
Meio were published in January 2019,
and this is the first update to both resources since 2019. The
maiden resource for Murial South was 5.6Mt @ 1.14% Li2O M&I
with an additional 0.7Mt @ 1.06% Li2O, while Lavra do Meio was
2.3Mt @ 1.09% Li2O M&I, with an additional 0.3Mt @ 0.87%
Li2O.
Table 1: Phase 4 Pegmatites Exploration Potential At
Various Cut-Off Grades(1)
Exploration
Zones
|
2019
M&I
|
2019
Inferred
|
Lower Range
Tonnage (Mt)
|
Upper Range
Tonnage (Mt)
|
Murial
South
|
5.6
|
0.7
|
18
|
20
|
Lavra do
Meio
|
2.3
|
0.3
|
5
|
6
|
Tamboril and
Maxixe
|
-
|
-
|
3
|
4
|
Total
|
7.9
|
1.0
|
26
|
30
|
|
Note 1: The potential
quantity and grade of the lithium mineralization for Murial
South, Lavra Do Maio, Maxixe and Tamboril are conceptual in nature,
there has been insufficient exploration to estimate Mineral
Resources and it is uncertain if exploration will confirm the
target ranges.
|
The company is highly encouraged with the initial assay results
from the Tamboril and Maxixe deposits that suggest that the
mineralization encountered is directly related to the Phase 3 mine
and confirms that Phase 3 and Phase 4 are a continuous
mineralization.
Further assay results for the completed holes at Maxixe and
Tamboril are pending and will be released once received to produce
an updated Mineral Resource Estimate.
Phase 5 and Accelerated Plan
As part of the Exploration Program, Sigma Lithium has also
identified additional pegmatites that could potentially yield up to
20 Mt of incremental mineral resource in a potential Phase 5.
The Company is conducting significant exploration RC drilling,
trench work and sampling, in 57 mineralized pegmatites (out of the
200 pegmatites mapped within the Company's mineral concessions).
The Exploration Program defined the surface area and the weathered
mineralogy for these 57 pegmatites. The Accelerated Plan will
include drilling exploratory core diamond drill holes into each of
these targets.
The Company increased its exploration efforts in an Accelerated
Program: a total of 8 core diamond drills currently operating in
the Grota do Cirilo region with 20,000m planned for the next 7 weeks. The current
drilling priority is to confirm and further extend the size of the
pegmatite swarm at the Phase 4 area.
Iran Zan, MAIG, co-Head of Geology and co-General Manager,
"Our Phase 4 is the result of the hard work and relentless
commitment of Sigma's geology team over the last year. The results
derived from these months of drilling activities are impressive,
confirming the projections for Phase 4. The exploration campaign
provided an understanding of the connectivity of the pegmatites in
the area between Phase 3 and Phase 4. The ore bodies show
consistent strike and depth with intercepts, grades, and coarse
spodumene crystal quality. We are very optimistic about the 2.3 km
long strike of Phase 4 and its depth of approximately 300 meters,
which is still open to the east."
Current Mineral Resource and Phase 1, 2 and 3 Results
The Amended and Restated Technical Report from June 12, 2023 shows a Consolidated Mineral
Resource on the Grota do Cirilo property of 77Mt of Measured and
Indicated Resources at a grade of 1.43% Li2O and Inferred Resources
of 8.6Mt also at a grade of 1.43% Li2O (Table 2).
Tables 3, 4 and 5 show the contribution to the Consolidated
Resource from Phases 1, 2 and 3.
Please refer to the Company's National Instrument 43-101
technical report titled "Grota do Cirilo Lithium Project Araçuaí
and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
issued June 12, 2023, for further
information on the Mineral Resource statements.
Table 2: Grota do Cirilo Consolidated Mineral Resource
June 2023
Cut-Off Grade (%
Li2O)
|
Category
|
Tonnes (Mt)
|
(% Li2O)
|
0.5 %
|
Measured
|
37.1
|
1.43 %
|
0.5 %
|
Indicated
|
39.9
|
1.43 %
|
0.5 %
|
Measured & Indicated
|
77.0
|
1.43 %
|
0.5 %
|
Inferred
|
8.6
|
1.43 %
|
Table 3: Phase 1 Mineral Resource Estimate
Cut-Off Grade (% Li2O)
|
Category
|
Tonnes (Mt)
|
(% Li2O)
|
0.5 %
|
Measured
|
10.2
|
1.59
|
0.5 %
|
Indicated
|
7.2
|
1.49
|
0.5 %
|
Measured &
Indicated
|
17.4
|
1.55
|
0.5 %
|
Inferred
|
3.8
|
1.58
|
Table 4: Phase 2 Mineral Resource Estimate
Cut-Off Grade (% Li2O)
|
Category
|
Tonnes (Mt)
|
(% Li2O)
|
0.5 %
|
Measured
|
18.7
|
1.41
|
0.5 %
|
Indicated
|
6.3
|
1.30
|
0.5 %
|
Measured &
Indicated
|
25.1
|
1.38
|
0.5 %
|
Inferred
|
3.8
|
1.39
|
Table 5: Phase 3 Mineral Resource Estimate
Cut-Off Grade (% Li2O)
|
Category
|
Tonnes (Mt)
|
(% Li2O)
|
0.5 %
|
Measured
|
2.4
|
1.56
|
0.5 %
|
Indicated
|
24.3
|
1.48
|
0.5 %
|
Measured &
Indicated
|
26.7
|
1.49
|
Detailed Phase 4 Exploration Program
Sigma Lithium's Phase 4 deposits are in the Cirilo Grota region,
in the same continuous mineralization line to the Phase 2 and Phase
3 deposits. The Phase 4 pegmatite dikes run parallel to those
defined at the Phases 2 and 3 deposits. Drill testing to date has
confirmed that the Phase 4 pegmatites extend to at least
400 m below surface.
Drilling results from the Maxixe and Tamboril deposits have
confirmed the presence of spodumene crystals with assay results
confirming substantial intersections of strong lithium
mineralization. Significant results include the following highlight
drilling intercepts:
-
- DH – MAX - 03 1.40% Li2O over 26.0m, including 2.34% Li2O over 9.07 m
- DH - TAM – 10 1.00 % Li2O over 7.03
m, including 1.23% Li2O over 3.00
m
- DH – LDM – 04 1.79% Li2O over 27.61
m, including 3.26% Li2O over 10.00
m
- DH – LDM – 05 1.31% Li2O over 31.85
m, including 1.81% Li2O over 11.29
m
- DH – LDM – 14 1.17% Li2O over 22.83
m, including 2.02% Li2O over 7.81
m
Table 6: Phase 4 Intercept Results
BHID
|
From (m)
|
To (m)
|
Length (m)
|
Grade
(Li2O%))
|
DH-MUR-021
|
163
|
198
|
35
|
1,39
|
DH-MUR-027
|
151
|
177
|
26
|
1,78
|
DH-MUR-031
|
142
|
171
|
29
|
1,57
|
DH-MUR-033
|
170
|
192
|
22
|
1,32
|
DH-MUR-034
|
180
|
223
|
43
|
1,47
|
DH-MUR-034
|
234
|
244
|
9
|
1,79
|
DH-MUR-039
|
225
|
245
|
20
|
1,38
|
DH-MUR-055
|
174
|
190
|
16
|
1,22
|
DH-MUR-060
|
114
|
122
|
8
|
1,6
|
DH-MUR-091
|
284
|
295
|
11
|
1,28
|
DH-MUR-112
|
251
|
285
|
34
|
1,62
|
DH-MUR-114
|
194
|
218
|
24
|
1,7
|
DH-MUR-132
|
213
|
227
|
15
|
1,44
|
DH-MUR-206
|
214
|
246
|
32
|
1,27
|
DH-MUR-184
|
145
|
150
|
6
|
1,19
|
QUALITY ASSURANCE AND CONTROL
Diamond drilling samples were collected and sent to the
SGS-Geossol laboratory. All diamond drilling core samples submitted
for assay were saw cut with one-half supplied for assay and
one-half archived for reference. The physical preparation follows
the steps: drying, crushing of 75% to 3mm, homogenization,
splitting of Jones, and pulverization of 100g in a Tungsten carbide
pan until 150 meshes with 95% of passing pulp. In 5% of the
samples, the control of particle size and loss of mass is carried
out in the crushing and pulverization stages (QCgranul and QCloss
of mass). The analytical method adopted was ICP90A, carrying out
the sodium peroxide (Na2O2) fusion and ICP AES. Samples with the
content of Li2O% > 3.225 (over-limit for ICP90A) were reanalyzed
by ICP90Q, consisting of sodium peroxide (Na2O2) fusion in
concentrates (ICP AES).
Sampling was carried out following strict QA/QC procedures.
Certified reference materials (standards) were inserted into the
sample stream. Blanks AMIS0577, AMIS0484, and AMIS0865 were
submitted at a rate of 1 per 29 samples and introduced
preferentially at upper or lower contacts of the main pegmatitic
intercepts. Standards AMIS0341, AMIS0342, AMIS0565, and AMIS0408
were inserted at the same rate as blanks, mostly within the
pegmatite intervals. In addition, QC controls were added preferably
in pegmatite samples with a satisfactory content of Li2O%, enough
to make a fair comparison between the original samples and
controls. Coarse and pulp duplicates were injected at a rate of 1
per 40 samples, while the check samples were at a rate of 1 per 20
samples. All check samples were dispatched to a second laboratory
analysis and sent to ALS in Vancouver. The ALS results were compared with
the SGS-Geosol results to verify the reliability of the primary
laboratory results.
QUALIFIED PERSONS
The technical and scientific information related to mineral
resource estimates in this news release has been reviewed and
approved by Marc-Antoine Laporte
P.Geo., M.Sc., of SGS. Mr. Laporte is a Qualified Person as
defined by National Instrument 43-101 and is independent of Sigma
Lithium.
The mining and mineral reserve estimates in this news release
have been reviewed and approved by Porfirio
Cabaleiro Rodriguez P.Eng, Mining Engineer of GE21
Consultoria Mineral Brazil. Mr. Rodriguez is a Qualified Person as
defined by National Instrument 43-101 and is independent of Sigma
Lithium.
The technical information in this news release, including
statements regarding geology and potential mineral resources, has
been elaborated by Iran Zan MAIG (Membership number 7566), Director
of Geology and exploration department of Sigma Lithium, Mr Iran Zan
is a Qualified Person internal of Sigma Lithium corporation.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a
leading global lithium producer dedicated to powering the next
generation of electric vehicle batteries with carbon neutral,
socially and environmentally sustainable chemical-grade lithium
concentrate.
Sigma Lithium has been at the forefront of environmental and
social sustainability in the EV battery materials supply chain for
six years and it is currently producing Triple Zero Green Lithium
from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to
produce 270,000 tonnes of Triple Zero Green Lithium annually
(36,700 LCE annually). If it is determined to proceed after
completion of an ongoing feasibility study, Phase 2 & 3 of the
project are expected to increase production to 766,000 tonnes
annually (or 104,200 LCE annually). The project produces Triple
Zero Green Lithium in its state-of-the-art Greentech lithium plant
that uses 100% renewable energy, 100% recycled water and 100%
dry-stacked tailings.
Please refer to the Company's National Instrument 43-101
technical report titled "Grota do Cirilo Lithium Project Araçuaí
and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
issued June 12, 2023, which was
prepared for Sigma Lithium by Homero
Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc;
Jarrett Quinn, P.Eng., Primero Group
Americas; Porfirio Cabaleiro
Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and
Noel O'Brien, B.E., MBA, F AusIMM
(the "Updated Technical Report"). The Updated Technical Report is
filed on SEDAR and is also available on the Company's website.
For more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
Twitter: @SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking
information" under applicable Canadian and U.S. securities
legislation, including but not limited to statements relating to
timing and costs related to the general business and operational
outlook of the Company, the environmental footprint of tailings and
positive ecosystem impact relating thereto, donation and upcycling
of tailings, timing and quantities relating to tailings and Green
Lithium, achievements and projections relating to the Zero Tailings
strategy, achievement of ramp-up volumes, production estimates and
the operational status of the Grota do Cirilo Project, and other
forward-looking information. All statements that address future
plans, activities, events, estimates, expectations or developments
that the Company believes, expects or anticipates will or may occur
is forward-looking information, including statements regarding the
potential development of mineral resources and mineral reserves
which may or may not occur. Forward-looking information contained
herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and
supportive legislative, regulatory and community environment in
Brazil; demand for lithium,
including that such demand is supported by growth in the electric
vehicle market; the Company's market position and future financial
and operating performance; the Company's estimates of mineral
resources and mineral reserves, including whether mineral resources
will ever be developed into mineral reserves; and the Company's
ability to operate its mineral projects including that the Company
will not experience any materials or equipment shortages, any
labour or service provider outages or delays or any technical
issues. Although management believes that the assumptions and
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that these assumptions and
expectations will prove to be correct. Forward-looking information
inherently involves and is subject to risks and uncertainties,
including but not limited to that the market prices for lithium may
not remain at current levels; and the market for electric vehicles
and other large format batteries currently has limited market share
and no assurances can be given for the rate at which this market
will develop, if at all, which could affect the success of the
Company and its ability to develop lithium operations. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether because of new information,
future events or otherwise, except as required by law. For more
information on the risks, uncertainties and assumptions that could
cause our actual results to differ from current expectations,
please refer to the current annual information form of the Company
and other public filings available under the Company's profile at
www.sedar.com.
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.
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