A.I.S. Resources Announces Argentine Property Option Agreement and Completion of First Payment
Vancouver, British Columbia – October 16, 2017 – A.I.S. Resources Limited (TSX – NEX: AIS.H, OTCQB: AISSF) (the “Company” or “AIS”) is pleased to announce the Company has negotiated an Option Agreement to purchase the Guayatayoc, Guayatayoc III and Laguna Vilama projects in Argentina.
Under the terms of the option agreement AIS paid $720,000 US on October 12, 2017 for a six month option to evaluate the properties and complete a drilling and geohydrological program. The agreement allows for a further six month option upon payment of $280,000 US. At any time during the option term AIS can acquire a 100% interest in the properties by making a single payment of $4,500,000 US.
The properties are subject to a 4.5% royalty on revenue from sales of lithium carbonate, payable to the Argentine provincial and federal governments. Currently, Argentina is the world’s third-largest lithium-producing country, accounting for 16 percent of production at 29,000 tonnes.
Guayatayoc and Guayatayoc III are located in Jujuy Province along highway 11, 5 kilometres from the town of Abralaite in the Puna plateau. The property covers approximately 5,250 hectares of the Guayatayoc Salar which hosts favourable geology for lithium, boron and potasium, located adjacent to the El Aguilar mountain range, the source of lithium and boron. Previous exploration on the property by AIS has returned values between 200 ppm and 900 ppm of lithium. The magnesium to lithium ratios are less than 2 to 1, which is excellent for low cost processing. Ulexite is outcropping at surface and in layers only 30 centimetres below the surface. Infrastructure in the area includes 220v power and a gas pipeline 5km from the concessions.
A PhD study published in 2013 by Dr. Steinmetz models the geology of aquifers and provides a detailed analysis of the structural geology and lithology of the basin. Steinmetz analysed previous 2D Seismic surveys dating back to 1995 over the entirety of the basin. The area has been mined for borates and has a borate mining licence. Surface sampling of nine pits conducted earlier in the year returned nine lithium values of greater than 120ppm (0.012%), five pits had Potassium values greater than 4000 ppm (0.4%) and 11 pits had Boron values of greater than 400 ppm. Drilling and seismic permits are in the final stages of approval.
Laguna Vilama is located in Jujuy Province, in north western Argentina along the Bolivian and Chilean borders. The property is comprised of 2,500 contiguous hectares covering the middle of the salar. Early mapping and sampling has identified a favourable environment for the presence of brines.
The Jujuy province of Argentina is a well-known, favourable mining jurisdiction. Orocobre’s new development at the Olaroz salar, hosts a JORC/NI43-101 compliant, measured and indicated resource of 6.4 Mt LCE (Orocobre website, Oct 2, 2016). Lithium Americas is developing the Cauchari salar, jointly with SQM a JORC/NI43-101 compliant, measured and indicated resource of 8.7 Mt LCE. (Lithium Americas website. Oct 2, 2016). Both are less than 100km from the properties.
In June 2017 the TSX Venture exchange accepted the 43-101 report on the properties which is available on SEDAR and AIS’s website.
Phillip Thomas, BSc Geol, MBusM, MAIG, MAIMVA, (CMV), a Qualified Person as defined under NI 43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Thomas is not independent of the Company as he is an officer and a shareholder.
About A.I.S. Resources
A.I.S Resources Limited a TSX-V listed investment issuer, was established in 1967 and is managed by experienced, highly qualified professionals who have a long track record of success in lithium exploration, production and capital markets. Through their extensive business and scientific network, they identify and develop early stage projects worldwide that have strong potential for growth with the objective of providing significant returns for shareholders. The Company’s most recent activities have been the exploration of lithium properties in Northern Argentina.
On Behalf of the Board of Directors,
AIS Resources Ltd.
Marc Enright-Morin, President and CEO
A.I.S. Resources Limited
President and CEO
ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by the Corporation might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.