Salar Escondido Lithium Project

NRG Metals Inc. Projects

Salar Escondido Lithium Project in Argentina

Drilling is underway the Salar Escondido lithium project (formerly called Carachi Pampa) in Catamarca province, Argentina. The Salar Escondido project comprises mining concessions totaling approximately 29,180 hectares (72,100 acres) located 280 km southeast of the provincial capital of Catamarca. The project area is strategically located within the Lithium Triangle, in close proximity to one of the largest known lithium deposits in Argentina, and within the Puna Region, an elevated plateau which lies on the eastern side of the Andes Mountains. This region contains a number of highly mineralized salars including the lithium producing salars Hombre Muerto.

Salar Escondido is a large basin, roughly 20 by 40 kilometers in size, which is mostly covered by a series of overlapping alluvial fans. NRG’s technical team believes that a large salar with an area of at least 700 km2 developed in the basin about 2 million years ago.

After the salar was formed, it was buried by coalescing alluvial fans, and it is thus considered to be a “paleo-salar."  Hence the name Salar Escondido, which means “hidden salar” in Spanish.

Only a small portion of the original brine salar is presently exposed at surface in a small saline lake in the southwest portion of the basin. The brine in the lake contains anomalous lithium values.

During 2017, NRG’s drilling confirmed the presence of a buried brine zone beneath the alluvial cover on the surface of the basin. Brine was intersected at a depth of 140 m, and as reported in the Company’s press release dated December 7, 2017, sampling from 183 to 198 m returned an average grade of 229 mg Li/liter in a porous, weakly consolidated sandstone horizon. A Vertical Electrical Sounding (“VES”) geophysical survey conducted by the Company suggests that the brine zone occurs at an even shallower depth where the upcoming hole will be drilled.

Schematic vertical section based on VES geophysical survey showing a very low resistivity zone (pink), with overlying dry (gray), fresh water (blue) and brackish (green) zones.

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.”

Phase II of the drill program consists of drilling four additional holes at a grid spacing of approximately five kilometers and also drill larger diameter wells for pumping tests in order to establish a NI 43-101 compliant maiden mineral resource estimate. The Company intends to rapidly define the new lithium discovery at Salar Escondido.

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