June 27, 2018 / Vancouver, BC / NRG Metals Inc. (“NRG” or the “Company”) (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt: OGPN) is providing and update on drilling at the Salar Escondido Lithium Project. As previously announced, the second drill hole at the project was completed to a depth of 400 meters. The hole was enlarged by reaming, and plastic perforated casing was installed to a depth of 371 meters, which is the depth to volcanic rocks interpreted to be the basement.
Sampling commenced at a depth of 50 meters, but strong artisanal pressure was encountered when pumping started. The initial artesian flow was a dirty brown, foul smelling, salty brine. The flow gradually diminished and stabilized, and after 3.5 hours of pumping, the brine became clear. A total of 1,000 liters of clear brine was collected, and samples were taken from the stabilized brine under the supervision of Bill Feyerabend, the on-site Qualified Person. After the samples from 50 meters were collected, the hole became blocked at a depth of 100 meters, and a sample was taken at 100 meters using a Snap Sampler™. Because of the blockage at 100 meters, it was not possible to collect any samples below that depth. The results of the samples are shown in the following table.
A vertical electrical sounding survey completed in 2016 by the Company identified a highly conductive zone starting at a depth of about 100 meters. The results from this hole as well as the hole completed in 2017 have confirmed the presence of lithium in highly permeable clastic rocks, mainly sandstones and conglomerates. However, due to difficult drilling conditions, no brine samples were obtained in this hole from the primary target zone from 100 to 370 meters.
The samples were assayed by the Alex Stewart Laboratory in Jujuy, Argentina. Alex Stewart employed Inductively Coupled Plasma Optical Emission Spectrometry (“ICP-OES”) as the analytical technique for the elements of interest shown in the table. Alex Stewart maintains a strict internal QA/QC program employing multiple standards, re-analyses by AA and calculation of ionic balances. NRG inserted one blank sample and one blind duplicate sample in the sample batch, and the QA/QC results corroborate the analyses reported in this press release.
Salar Escondido is proving to be a challenging exploration environment, and the Company is reviewing the data in order to formulate its plans for future exploration, and the Company is also reviewing its underlying property agreements. While the presence of lithium in highly permeable host rocks has been confirmed in two holes, there is considerable variation in the lithium grades and the Mg/Li ratios, and only a very small portion of this large and unexplored lithium brine basin has been partially tested. The land package at Salar Escondido is approximately 30,000 hectares (74,000 acres) and covers the northern part of the same basin where a competitor recently reported encouraging drill results.
About the Company
NRG Metals Inc. is an exploration stage company focused on the advancement of lithium brine projects in Argentina. In addition to the Salar Escondido project, the Company is currently drilling at its flagship 3,287-hectare (8,100 acre) Hombre Muerto Norte lithium project (“HMN”) in Salta province. Recently, the Company announced very encouraging assay results for the samples in the first drill hole from surface to a depth of 300 meters, and a second core hole is in progress. The HMN project 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. A NI 43-101 report for HMN was filed on SEDAR in October 2017.
NRG Metals Inc. currently has approximately 132 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.
On behalf of the board of directors of NRG Metals Inc.:
Adrian F.C. Hobkirk
President and C.E.O.
The preparation of this press release was supervised by Mr. William Feyerabend, a Certified Professional Geologist and a Qualified Person under NI 43-101. Mr. Feyerabend approves of the technical and scientific disclosure contained in this press release.
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 harbor.