technical report on the pocitos west project, salta province, argentina · 2017-08-03 · pocitos...

TECHNICAL REPORT

on the POCITOS WEST PROJECT, Salta Province, Argentina

Prepared for:

Liberty One Lithium Corp.

1920 -1177 W Hastings Street

Vancouver, BC, V6E 2K3, Canada

Prepared by:

Nivaldo Rojas

Fellow AusIMM 227551

Guayaquil 265 –Barrio Arizu

Godoy Cruz (5501)- Mendoza- Argentina

EFFECTIVE DATE: June 22nd, 2017

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TABLE OF CONTENTS

1. SUMMARY ........................................................................................................................................ 6

2. INTRODUCTION ................................................................................................................................ 9

3. RELIANCE ON OTHER EXPERTS ....................................................................................................... 10

4. PROPERTY LOCATION AND DESCRIPTION ...................................................................................... 11

4.1 Property Location ..................................................................................................................... 11

4.2 Property Description ................................................................................................................ 12

4.3 Type of Mineral Tenure ............................................................................................................ 14

4.4 Interest in Property .................................................................................................................. 15

4.5 Work Permitting ....................................................................................................................... 16

5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............. 17

5.1 Accessibility .............................................................................................................................. 17

5.2 Climate ..................................................................................................................................... 17

5.2.1 Meteorological Data Sources ......................................................................................................... 17

5.2.2 San Antonio de los Cobres Weather Station .................................................................................. 18

5.2.3 Hombre Muerto Weather Station .................................................................................................. 18

5.2.4 Pastos Grandes Weather Station .................................................................................................... 19

5.3 Local Resources ........................................................................................................................ 20

5.4 Infrastructure in the Region ..................................................................................................... 21

5.4.1 Road Connections ........................................................................................................................... 21

5.4.2 Electrical Power Connection ........................................................................................................... 21

5.4.3 Natural Gas ..................................................................................................................................... 21

5.4.4 Railway Antofagasta-Salta .............................................................................................................. 22

5.5 Physiography ............................................................................................................................ 22

5.5.1 Topography ..................................................................................................................................... 22

5.5.2 Air Quality ....................................................................................................................................... 24

5.6 Biosphere (Vegetation and Fauna) ........................................................................................... 24

5.6.1 Vegetation ...................................................................................................................................... 24

5.6.2 Fauna .............................................................................................................................................. 25

5.7 Hydrosphere ............................................................................................................................. 25

6. HISTORY .......................................................................................................................................... 27

7. GEOLOGICAL SETTING AND MINERALIZATION .............................................................................. 28

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7.1 Regional Geology ...................................................................................................................... 28

7.2 Local Geology ........................................................................................................................... 29

7.2.1 Geomorphology .............................................................................................................................. 29

7.2.2 Geology ........................................................................................................................................... 31

8. DEPOSIT TYPES ............................................................................................................................... 36

9. EXPLORATION ................................................................................................................................. 37

9.1 Vertical Electrical Sounding Survey (VES) ................................................................................. 37

10. DRILLING & PUMPING TESTS ........................................................................................................ 39

11. SAMPLE PREPARATION, ANALYSES AND SECURITY .................................................................... 41

11.1 Sample preparation ................................................................................................................ 41

11.2 Sample Analyses ..................................................................................................................... 41

11.2.1 Laboratory Analytical Procedures for Drainable Porosity ............................................................ 41

11.2.2 Laboratory Analytical Procedures for Total Porosity .................................................................... 42

11.2.3 Laboratory Analytical Procedures for Brine Chemistry ................................................................ 43

11.3 Quality Control Results and Analyses..................................................................................... 44

12. DATA VERIFICATION ..................................................................................................................... 45

13. MINERAL PROCESSING AND METALLURGICAL TESTING .............................................................. 46

14. MINERAL RESOURCE ESTIMATES ................................................................................................. 47

15. MINERAL RESERVE ESTIMATES .................................................................................................... 48

16. MINING METHODS ....................................................................................................................... 49

17. RECOVERY METHODS ................................................................................................................... 50

18. PROJECT INFRASTRUCTURE .......................................................................................................... 51

19. MARKET STUDIES AND CONTRACTS ............................................................................................. 52

20. ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITES STUDIES .................. 53

21. CAPITAL AND OPERATING COSTS ................................................................................................ 54

22. ECONOMIC ANALYSIS .................................................................................................................. 55

23. ADJACENT PROPERTIES ................................................................................................................ 56

24. OTHER RELEVANT DATA AND INFORMATION .............................................................................. 59

25. INTERPRETATION AND CONCLUSIONS ......................................................................................... 60

26. RECOMMENDATIONS ................................................................................................................... 61

27. REFERENCES ................................................................................................................................ 63

27.1 References mentioned in the text. ........................................................................................ 63

27.2 General references not cited in text. ..................................................................................... 64

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28. ABBREVIATIONS............................................................................................................................ 66

29. CERTIFICATE OF AUTHOR ............................................................................................................. 68

22. APPENDIXES .................................................................................................................................. 70

22.1 Appendix on Legal Opinion .................................................................................................... 70

FIGURES

Figure 4.1: Location of the Pocitos West project, Pocitos Salar, Salta, Argentina............................. 11

Figure 4.2: Location of the Pocitos West Properties with respect the Salar de Pocitos and San Antonio de los Cobres. ....................................................................................................................... 12

Figure 4.3: Map of the properties optioned to Liberty One Lithium Corp in the Salar de Pocitos basin. .................................................................................................................................................. 14

Figure 5.2 General Infrastructure for the Pocitos West Region ........................................................ 22

Figure 5.3: General Topography in the Pocitos Region ...................................................................... 23

Figure 7.1: Structural setting of Puna Region showing location of Salar de Pocitos. ........................ 29

Figure 7.2: Strongly folded outcrops of the Coquena Fm. in Pozuelos Ridge .................................... 31

Figure 7.3: General Geology on the Salar de Pocitos Basin ............................................................... 32

Figure 7.4: Cross Section EW Sierra de Macon- Cordon de Pozuelos ................................................ 33

Figure 7.5: View east from the Project area. In the foreground are terraced Quaternary deposits, to the right outcrops of the re-worked Tertiary sediments, behind which are evaporite deposits of Pocitos salar, and in the background the Copalayo ridge. ................................................................. 34

Figure 7.6: View of the western sector of the Pocitos salt flat where terrigenous/evaporite facies are exposed ........................................................................................................................................ 35

Figure 9.1: Location of the measured SEV stations at Pocitos West ................................................. 37

Figure 9.2: Distribution of the layers the underground layers. Resistivity model at Pocitos West. (N-S Section). Sections show resistivity measures in ohm/metre and VES stations survey locations. .. 38

Figure 9.3: Distribution of the layers building the underground resistivity model at Pocitos West (East-West Section). ........................................................................................................................... 38

Figure 10.1: Diagram of use of Drive Point Device System. ............................................................... 39

Figure 10.2: Double Packer ................................................................................................................ 39

Figure 11.1: Screened and wrapped pucks for drainable porosity by centrifuge .............................. 42

Figure 15.1: Property Map for Pocitos Salar ...................................................................................... 58

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TABLES

Table 4.1: Properties optioned to Liberty One at Pocitos Region. Corner coordinates (Gauss Kruger/Posgar Zone 3). ...................................................................................................................... 13

Table 5.1: Climate Data collected in Pastos Grandes Salar, 2012. ..................................................... 19

Table 5.2 Climate Data collected in Pastos Grandes Salar 2012. ...................................................... 19

Table 11.1: List of the Basic Suite of Analyses for Lithium-Bearing Brine Samples .......................... 43

Table 15.1: Mining Properties at properties valid a Salar de Pocitos ................................................ 56

Table 26.1 Recommended Exploration Activities, Schedule and Cost Estimates .............................. 61

Table 26.2 Recommended Phase I Exploration Cost Estimates ......................................................... 62

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1. SUMMARY

The present technical report (the “Report”) was requested by Liberty One Lithium Corp. (CVE:LBY - “The

Company,” or “Liberty One”) to support its option to acquire majority interest in a set of 11 mining

properties identified as: POCITOS 200 (file N° 20,166), POCITOS 202 (file N° 20,168), POCITOS 204 (file N°

20,170) and POCITOS 206 (the “Granted Properties”); and POCITOS 201 (file N° 20,167), POCITOS 203 (file

N° 20,169), POCITOS 205 (file N° 20,171), POCITOS 207 (file N° 20,173), POCITOS 208 (file N° 20,174),

POCITOS 209 (file N° 20,175) and POCITOS 211 (file N° 20,177) (the “Solicited Properties”, and jointly as the

Granted Properties, the “Properties”).

The Property is centered along the central west margin of the north-south elongate present-day Salar de

Pocitos basin and covering 15,857 hectares.

Argentinean law provides for the granting of two types of mining rights: exploration permits (“cateos”)

which are limited in duration and which allow for the exploration of a mineral property, and mining permits

(minas), which allow for the exploitation of the minerals in the subject property. The designations of the

permits in respect of the Property are mining permits. Mining permits are unlimited in duration and remain

the holder’s property as long as the holder meets their obligations under the Argentinean National Mining

Code, including biennial canon payments and minimum investment commitments.

Liberty One can acquire up to an 80-per-cent interest in the Pocitos West project consisting of 15,857.34

hectares (39,183 acres). As consideration for grant of the option and pursuant to the terms of the Option

Agreement, the Company will pay Millennial Lithium aggregate cash consideration of US$5,500,000 and

incur an aggregate of $1,000,000 of staged expenditures to earn a 70% interest in the Property. The

Company will earn a further 10% interest in the Property if it completes a bankable commercial feasibility

study on the Property within 42 months of the closing of the Transaction.

On its side, Millennial Lithium can acquire a 100% interest in the Property in consideration of making the

following payments and share issuances to the Vendor: A non-refundable deposit of US$100,000 (the

“Deposit”) paid to the Vendors and an additional US$150,000 (the “First Option Payment”) which was due

upon receipt of Exchange approval of the Option. The Option may be exercised within three years by

making a total of US$4,500,000 in payments (the “Option Exercise Price,” including the Deposit and the First

Option Payment): (i) $250,000 (U.S) six months from the date of the Agreement; (ii) $500,000 (U.S.) twelve

months from the date of the Agreement; (iii) $500,000 (U.S.) eighteen months from the date of the

Agreement; (iv) $500,000 (U.S.) twenty-four months from the date of the Agreement; (v) $500,000 (U.S.)

thirty months from the date of the Agreement; and (vi) $2,000,000 (U.S.) thirty-six months from the date of

the Agreement.

The Property exhibits slightly anomalous surficial lithium and potassium brines and has been tested by

surface geochemical sampling, vertical electrical sounding (VES) geophysical surveying and by 12 shallow

wells drilled by Dirección General de Fabricaciones Militares (DGFM) testing for the presence of shallow

brine with significant lithium and potassium assays.

The salar basin is in the Altiplano-Puna region of Argentina – Bolivia – Chile, known as the Lithium Triangle.

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Basins in this region have proved to host the largest portion of lithium brine resources in the world. These

basins started evolving as inland closed lakes in a basin and range structural environment generated by

alternating compressional and extensional regimes over the back-arc of the Andean magmatic belts. Basin

evolution began almost 20 million years ago as closed basins in a relatively dry environment, resulting in

gradational sediments (gravels-sands-clays) and salt water (brine) concentrations. These brines are

sometimes enriched in lithium and potassium, likely due to concentration from Miocene and younger

ignimbrite fields, intermediate to acidic Miocene lava flows, and structurally controlled alkali rick hot-

springs over the flanks portions of the basins.

Present day brine accumulations occur in near-surface, porous halite evaporate halite deposits, and

importantly in large volumes of unconsolidated to poorly consolidated clastic sediments. In the former case,

alternating seasonal dry and rainy seasons resulted in partial dissolution of rock salt packages permitting

development of cavities (porosity) and concentration of saturated salt brines rich in lithium, potassium and

sodium chlorides. Normally, there are several alkali rock packages along the vertical section of the Salar with

proven occurrences over the first 20 metres (m) from surface, as occurs at the Atacama Salar in Chile, and in

deeper positions at Olaroz-Cauchari, Salinas Grandes, the Salar del Hombre Muerto and others in Argentina.

In recent years, important accumulations of brine have been identified in much thicker sequences of clastic

sediments statigraphically above, below and interbedded with the evaporite layers.

Mineral properties in the Salars of the Puna have been studied for lithium and potassium since the 1970s

when the Argentinean Government through “Dirección General de Fabricaciones Militares” (DGFM)

completed extensive exploration of the Andean Salars. This governmental effort resulted in the definition of

the Salar de Hombre Muerto West, an “Atacama type” salt-hosted deposit, where in 1997 the Mina Fenix

operation was initiated by FMC Lithium Corporation. A new wave of exploration for lithium began between

2007 - 2010, when international players - primarily Australian and Canadian “small cap” explorers - utilized

exploration techniques including surface geochemistry; geophysical surveys and extensive drilling over

numerous basins including Salar de Olaroz (Orocobre, Australian); Salinas Grandes (Orocobre & others);

Salar de Cauchari (Lithium Americas Corp, Canadian); Salar del Rincon (ADY Resources - Australian); Salar de

Pastos Grandes (ERAMINE, French); Salar de Pozuelos (Lithea, Argentine-Korean); Salar de Diablillos (Rodinia

Inc., now Lithium X, Canadian); Salar del Hombre Muerto East (Lithium 1, Canadian and Galaxy Lithium,

Australian); Salar de Llullaillaco (International Lithium Corp, Chinese-Canadian). A renewed appetite for

lithium developed in early 2016 as new companies and various joint ventures showed renewed interest in

the already known salars and other less explored areas, including the large Salar de Arizaro, Salar de

Incahuasi (Salta), Salar de Pocitos, Salar de Rio Grande (Salta), Salar de Antofalla, the Carachipampa basin in

Catamarca, Salar de Jama, Laguna de Vilama, and Laguna de Guayatayoc basin in Jujuy.

While located adjacent to well-known resources and firmly within the known trend of lithium-bearing salars

in northern Argentina, Pocitos Salar has been subject to only limited exploration, mainly surficial.

Hydrogeological conditions have likely resulted in limited exposures at the present-day surface of brine that

may be contained in the basin. As a result, there has been limited attention paid to Pocitos, and only a

limited amount of the prior work has been reported by professionals recognized by the CIM as Qualified

Persons.

Exploration programs include the above mentioned study by DGFM; surface sampling campaigns by Lacus

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Minerals and Li3 Energy Inc. (Li3E) (OTCBB: LIEG); TEM geophysics by Southern Lithium Corp (CVE:SNL) and

Millennial Lithium Corp. in the north-west extreme of the basin and VES surveys by Pepinnini Corp. (ASX:

PNN) on the northwestern and eastern margins of the basin.

The Dirección General Fabricaciones Militares in 1979 reported a reconnaissance sampling campaign over a

number of Puna salars. “The campaign at Pocitos consisted of 12 shallow auger holes and one surface

sample”. Of the 12 auger holes, two reported anomalous values of 155ppm (Hole P12) and 417ppm Li (Hole

P8).

Li3E reported in a press release their 2010 shallow sampling campaign and geophysics results. The sampling

was near-surface on two 6km x 2km grids, located to the north-east of the Pocitos West properties. The

campaign returned values of 100-300ppm Li in the eastern area, and 1-200 ppm Li in the western grid. A

resistivity survey over the Li3E prospect area reportedly identified three target areas, including one highly

conductive zone of 0.2 ohm-meters at 250 meters deep, and other possible mixed brine zones of 0.4 - 0.75

ohm/m that encase the high conductivity layer from near surface to 450 m.

Lacus Minerals also reported in 2010 on their sampling and geophysics overseen same area, that was later

optioned to Li3E. While Lacus did not report geochemical assay values, they included in their report

distribution maps for 95 samples collected at 6.8 meters and below indicating values up to 255ppm Li. Their

geophysical survey consisted of 42 soundings from which the interpretation indicated a possible 140m thick

conductive brine layer with the top at a depth of 150m. According to Lacus, the brine-bearing horizon could

be projected to the surface at the western margin of the basin, comprising the western limit of Millennial’s

claims and consisting of conglomerate and sandstone.

This Report has been prepared by Nivaldo Rojas, a member of the Mining Engineer Institute of Chile (IIMCH

by its Spanish acronym), and a Fellow of the Australasian Institute of Mining and Metallurgy recognized by

CIM as meeting the conditions of being a Qualified Person (QP) under the requirements of Canadian

National Instrument 43-101. The nominated QP for this study is familiar with the geology and operation of

lithium deposits and visited the Property during 2017, verifying the general geology in the field and

assessing community impact and general environmental matters in and around the Property.

The author recognizes the subject of this technical report as a project of merit and recommends further

works to advance the Pocitos West mining licenses (minas) toward the initial exploration stage designed, if

successful, to contribute to a Preliminary Economic Assessment. The next two phases of work that can be

positively identified at this stage are:

Drilling to assess the possible brine-hosting aquifers at depth, and

Pumping tests and preliminary evaporation and processing trials to ascertain and confirm extractability

and the conceptual purification and refining process.

The first phase will commence in July 2017 and continue to September, 2017 at an estimated cost of

CDN$1.3 million. A resource in-fill drilling phase can be defined after the confirmatory drilling and if

justified, will likely be added as part of the second phase of work identified herein.

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2. INTRODUCTION

The present report was requested by Liberty One Lithium Corp. to evaluate their investment in the majority

acquisition of certain mining properties duly registered at the Salta Mining Court. Registration in the Mining

Court of Salta includes files with correlative numbers from 20166 through 20177 and a total covered surface

of 15,857.34 hectares.

Adjacent and nearby properties have been subject to different studies based on drill testing, geophysical

surveys and geochemical testing. These studies indicated potential for commercial lithium-potassium brine

concentrations. The Property is located on the central-west portion of the Salar de Pocitos basin, within the

Argentinean portion of the Lithium Triangle of South America Argentina-Bolivia-Chile.

Liberty One’s main interest is to define possible resources and develop facilities to produce concentrated

lithium brines, lithium carbonate or other lithium compounds, and possibly by-products that might include

potassium salts, borates and other chemical compounds of value.

The format and content of this Report is prepared in accordance with the requirements of National

Instrument 43-101 – Standards of Disclosure for Mineral Projects including Form 43-101F1 – Technical

Report and Companion Policy 43-101CP – To National Instrument 43-101 Standards of Disclosure for

Mineral Projects, of the Canadian Securities Administrators (“NI43-101”).

Exploration data used in the Report were made available to the author by Liberty One, the Vendor, through

Millennial and on geologic information available in the public domain.

Nivaldo Rojas, a “qualified person” (“QP”) who is independent of Liberty One Lithium Corp., supervised the

preparation of this Report. Mr. Rojas has extensive experience in exploration over the Argentinean Puna

region and in exploration of lithium-potassium bearing brines in it. He has the required knowledge for the

evaluation of lithium resources incorporating his background and knowledge in the field of mineral

economics, engineering processing, and geology of mineral deposits.

The author has visited the Pocitos West properties January 20th, 2016 verifying the general geology in the

field, confirming geophysics findings and infrastructure, and assessing community impact at the Salar de

Pocitos, and general environmental matters in and around the Property.

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3. RELIANCE ON OTHER EXPERTS

This report was prepared by the independent QP Nivaldo Rojas. The nominated QP for this study is familiar

with the geology and operation of lithium brine deposits and has visited the Properties in several occasions,

most recently from January 20th to 22nd, verifying previous exploration in the field and assessing community

impact and general environmental matters in and around the Property.

For the purpose of this Report, the QP has relied on the due diligence and title opinion on the Property

dated March 15, 2017 completed by Dr. Lucas Granillo Ocampo, a Partner of the law firm Estudio Garrido

Abogados, of Avenida del Libertador 498 - piso 23 - C1001ABR - Buenos Aires - Argentina. The text of the

Legal Opinion accompanies the Report as Appendix 22.1.

The QP also relied on the professional work of geologist Carlos Enrique Ganam from Salta who has

completed an analysis of the properties surrounding the Pocitos West tenements.

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4. PROPERTY LOCATION AND DESCRIPTION

4.1 Property Location

In the regional scenery the Pocitos West Project lies within a high elevation-arid climate plateau known as

the Altiplano or Puna territory of Bolivia-Chile-Argentina. This particular region has been named as the

Lithium Triangle, which holds the 75% of the lithium reserves and resources worldwide (Figure 4.1).

Figure 4.1: Location of the Pocitos West project, Pocitos Salar, Salta, Argentina

The block of properties addressed in this report are located in the Los Andes Department, in the Central

portion of the Puna region of Salta Province, northwestern Argentina. They lie along the western margin of

the Salar de Pocitos Basin (Figure 4.2), centered 15 kilometres (km) west-southwest of the small town of

Pocitos, some 85 kilometers west of the regional administrative centre of San Antonio de los Cobres, and

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165km northwest of the Salta provincial capital. The Property is 350km straight line distant east-south-east

of Antofagasta, the closest sea port (Figure 4.2). The central coordinates of the claim block are

24°29’33”south latitude and 67°05’39” west longitude, at an average elevation of 3,785 metres above sea

level (masl).

Figure 4.2: Location of the Pocitos West Properties with respect the Salar de Pocitos and San Antonio de los Cobres.

4.2 Property Description

The present surface expression of the Pocitos Salar is elongate in a north-south direction, measuring 57 km

north-south, varying between 6-9 kilometers east-west. The salt pan is almost completely flat with portions

of the older salar surface covered by talus and alluvial fan.

The mining properties being acquired by Liberty One (Table 4.1, figure 4.3) are registered to Marcela Ines

Casini and Rodrigo Castañeda Nordmann, of Salta, Argentina. The properties are irregularly shaped and

cover a surface area of 1585.34 hectares. The properties lie along the edge of the present-day salar, in an

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area that is covered by a wide portion of sediments washed from over-thrust older Tertiary red sediments

(Figure 4.1 and 4.2).

Table 4.1: Properties optioned to Liberty One at Pocitos Region. Corner coordinates (Gauss Kruger/Posgar Zone 3).

Name File Location x=East (m) y=East (m) Status Surface

POCITOS 200 20166 Pocitos 3,384,582.66 7,305,533.13 Granted 1,458.57

3,387,546.20 7,305,533.13

3,388,959.68 7,301,559.12

3,384,582.66 7,301,559.12

POCITOS 201 20167 Pocitos 3,390,017.90 7,298,583.91 Pending 1,459.68

3,388,959.68 7,301,559.12

3,384,582.66 7,301,559.12

3,384,582.66 7,298,583.91


3,390,017.90 7,298,583.91

3,390,017.90 7,295,830.61

3,384,582.66 7,295,830.61


3,390,017.90 7,295,830.61

3,390,017.90 7,293,077.32

3,384,582.66 7,293,077.32


3,390,017.90 7,293,077.32

3,390,017.90 7,290,324.02

3,384,582.66 7,290,324.02

3,384,582.66 7,293,077.32

3,390,017.90 7,293,077.32

3,390,017.90 7,290,324.02

3,384,582.66 7,290,324.02


3,390,017.90 7,289,649.54

3,392,599.39 7,289,649.54

3,392,599.39 7,293,687.21

3,391,860.47 7,293,403.51

POCITOS 206 20.172 Pocitos 3,384,582.66 7,290,324.02 Granted 1,496.48

3,390,017.90 7,290,324.02

3,390,017.90 7,287,570.73

3,384,582.66 7,287,570.73


3,386,332.01 7,286,132.77

3,392,564.87 7,286,132.77

3,392,564.87 7,288,239.89

3,392,015.69 7,288,239.89

3,392,015.69 7,289,121.08

3,392,599.39 7,289,121.08

3,392,599.39 7,289,649.54

3,390,017.90 7,289,649.54

3,390,017.90 7,287,570.73

POCITOS 208 20.174 Pocitos 3,387,040.77 7,286,132.77 Pending 1,235.63

3,392,564.87 7,286,132.77

3,392,564.87 7,283,895.97

3,387,040.77 7,283,895.97


3,388,166.00 7,283,895.97

3,388,166.00 7,280,764.27

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Name File Location x=East (m) y=East (m) Status Surface

3,392,564.87 7,280,764.27


3,389,755.69 7,277,033.64

3,389,755.69 7,280,764.27

3,393,787.05 7,280,764.27

Total 15,857.34

Figure 4.3: Map of the properties optioned to Liberty One Lithium Corp in the Salar de Pocitos basin.

4.3 Type of Mineral Tenure

According to Argentine Law, mineral resources belong to the province where the resource is located. Each

province has the authority to grant exploration permits and exploitation concession rights to private

applicant entities. However, the Federal Congress is entitled to enact the National Mining Code and any

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substantive mining legislation which is similarly applicable in all of the country. Provinces have the authority

to regulate the procedural aspects of the National Mining Code and to organize each enforcement authority

within its territory.

In general, there are two types of mining rights that can be granted under Argentinean mining law:

Exploration Permits (usually refer to as “Cateos”) that are limited in time and have limited obligations,

and

Exploitation Concessions (usually refer to as “Minas” or “Claims”) that are unlimited in time as long as

obligations set out in the National Mining Code are met by the title holders.

All concessions are granted by the regulating province either by a judicial (Salta) or administrative decision,

depending on the province. An Exploration Permit can be transformed into a Mining Permit any time before

the expiry date of the Exploration Permit by presenting a report and paying a canon (rent). Tenure for

exploitation concessions is indefinite, providing that semi-annual payments are made in February and July

each year.

In the Salta province all concessions are granted by a judge in the Mining Court. Each property is recorded

by number in the Mining Court registry, and each property has its own judicial file. In addition, the Mining

Secretariat records the property in the graphic register, and adds the property to an overall digital map of

the mining properties for the province.

The eleven separate minas, or claims that make up the Pocitos West Property are “minas” or mining permits

and therefore are unlimited in duration, provided that the biannual rents are paid each year. In respect of

mining permits relating to exploitation of lithium, the biannual rents equate to AR$1,600 (approximately

$100 USD) per 100 hectares (at the present exchange rate of $16/USD).

4.4 Interest in Property

Millennial Lithium Corp. and the Vendors of Pocitos West executed a definitive option agreement that

defines the material terms and conditions of the Option. A non-refundable deposit of US$100,000 (the

“Deposit”) was paid to the Vendors, as well as the additional US$150,000 (U.S.) (the “First Option Payment”)

which was due upon receipt of Exchange approval of the Option.

The Option may be exercised within three years by making a total of US$4,500, in payments (the “Option

Exercise Price”): (i) the $100,000 Deposit and the First $150,000 Option Payment: (ii) $250,000 six months

from the date of the Agreement; (iii) US$500,000 (U.S.) twelve months from the date of the Agreement; (iv)

US$500,000 eighteen months from the date of the Agreement; (v) US$500,000 twenty-four months from

the date of the Agreement; (vi) $500,000 (U.S.) thirty months from the date of the Agreement; and (vii)

$2,000,000 (U.S.) thirty-six months from the date of the Agreement.

Upon payment of the full Option Exercise Price, Millennial will have earned a 100% interest in Pocitos West.

No securities of the Company are to be issued in conjunction with exercise of the Option.

On acquiring the property rights, Millennial in turn optioned a majority interest in the mining rights to

Liberty One, who can acquire up to an 80-per-cent interest in the Pocitos West project consisting of

15,857.34 hectares (39,183 acres). As consideration for grant of the option and pursuant to the terms of the

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Option Agreement, the Company will pay Millennial Lithium aggregate cash consideration of US$5,500,000

and incur an aggregate of $1,000,000 of staged expenditures to earn a 70% interest in the Property. The

Company will earn a further 10% interest in the Property if it completes a bankable commercial feasibility

study on the Property within 42 months of the closing of the Transaction.

4.5 Work Permitting

The permitting process in Argentina is very straightforward, particularly in Salta. The permit to mine is

granted as part of the mining license but environmental approval is required by the office of the Mining

Secretary for the Province of Salta. This authorization is obtained by filing an Environmental Impact Report

(“Informe Impacto Ambiental”) or IIA).

The contents of these reports will vary according to the type and stage of activity being carried out on the

property. The information requested is submitted administratively as an extraction permit, covering

quarries, water and brine. The areas to be addressed, as requested by the Mining Secretary are:

The nature of the contractual agreement between the company applying and the owner;

The drilling schedule;

Submission of a form stating that the company is debt free; and

Statement of the company’s legal address in Salta.

The Company, working through Ingenieria & Ambiente Consultora S.R.L. (IAC) has submitted the necessary

documentation and anticipates approvals for exploration by mid-June, 2017. In addition, the Environmental

Impact Report must be renewed every two years or when there is a change in activity expected to occur on

the property.

The Property acquisition was subject to a thorough legal due diligence which revealed no other significant

factors and risks that may affect access, title or right and the ability to work on the property.

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5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

Access from Salta is via National Route 51 (RN-51) 170 km west and northwest to San Antonio de los Cobres.

From San Antonio de los Cobres, the route follows 66 km continuing on RN-51 to the junction of Provincial

Route 27 (RP 27) at the abandoned village of Cauchari. From there on RP 27, there are 36km to the town of

Pocitos. The project area is located 10 km west of the village, on the un-numbered continuation of RP 27

towards Tolar Grande and the international Socompa Pass (Figure 4.1).

From Antofagasta, Chile, the access to the project area is via the Panamerican Highway (5N) for 70 km to

Baquedano, proceeding east along routes 365, 367 and 23 for some 300 km to the Sico international pass.

From Sico, the most convenient access to the project site is 110 km via routes RN-51 and RP-27 through

Cauchari and Salar de Pocitos (Figure 4,1).

5.2 Climate

Climate conditions in the Puna region are characterized by extremely aridity, occasional high winds, low

temperature and high altitude, resulting in oxygen depleted air. The average annual rainfall decreases

significantly from east to west and from north to south. For example, rainfall averages 115 millimetres (mm)

at San Antonio of Cobres (coordinates S24.2232°, W66.3192°), while it is just 32 mm in Unquillal Railroad

Station (coordinates S24.535729, W67.205349°). In the areas of San Antonio de los Cobres and Salar del

Hombre Muerto, records indicate winter precipitations, mainly as snow and hail, but in small quantities.

Snow at the Puna does not accumulate on the ground for long, due to the high evaporation, the extreme

dryness of the air and constant strong winds. Nevertheless, in places, strong wind accumulates snow in low

areas and road cuts making access by vehicular traffic at times temporarily difficult during winter. These

accumulations become stronger and more frequent at higher elevation (over 4,200 masl).

Wide diurnal temperature differences are common during both summer and winter. Thermal amplitudes of

30°C to 35°C are common, and are more pronounced during the winter months.

Rainfall during the mid-summer months (late December - early March) can sometimes disrupt exploration

activities. Local rainfall in this region of the Puna averages 70mm per year. In dry years, the rain does not

significantly impact exploration activities. In others the rain can be heavy enough to inundate low areas in

salars with a very shallow level of water. The Pocitos West claim area is elevated above the floor of the salar

and is accessible by an elevated, well maintained road, enabling uninterrupted operations year-round.

Disruptive snowfall is not common in this portion of the Puna, but when it does occur it can stop operations

for a matter of days, but no more than a week.

Net annual evaporation (evaporation minus precipitation) in this region of the Puna is typically 2,500mm

per year, with evaporation rates peaking mid-spring to early summer (August - December), and late summer

to mid-autumn (February - June). Solar evaporation slows in the cooler winter months, and can be locally

offset by rain showers during the mid-summer months. In general, evaporation variations are predictable

and can be managed by experienced evaporations ponds operators.

5.2.1 Meteorological Data Sources

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Climate data have been collected within and around the nearby Pocitos salar area by several organizations.

The most relevant are:

In San Antonio de los Cobres town and in Hombre Muerto Salar (Tincalayu mine), by the Argentinean

National Weather Service (Servicio Meteorológico Nacional - SMN);

At the nearby Pastos Grandes salar, by Eramine Sudamerica S.A. during 2011 and 2012;

To the north at Rincon Salar by Enirgi/ADY and;

In Pocitos at the FMC gas compression facility.

5.2.2 San Antonio de los Cobres Weather Station

Located at Latitude: S24.2208°, Longitude: W66.3162° and an altitude of 3,770masl and 80km NE of the

Project center. Climate parameters are as follows:

Rainfall: The annual average rainfall is 103.9 mm with the highest occurrence in the period January to

March. The annual average maximum recorded is 144 mm.

Temperature: The annual average temperature is 8.6 degrees Celsius. The period from November to

February is the highest monthly average and is in the order of 12°C, while the coldest month is July at 2.2°C.

The maximum and minimum measured temperatures are 27°C and -21°C, respectively. The absolute

maximum temperature for the period was 27°C, recorded in December and the absolute minimum -16°C in

July.

Humidity: The Media Annual Relative Humidity is 43.8 percent. Monthly Average Maximum Humidity is in

July at 58% and the minimum in October at 34%.

Frost: The average annual frequency of frost days is 223, most frequently between April and October.

Wind: The wind tends to be very strong in the Puna, with gusts as high as 100 kilometres per hour (kph)

usually occurring between noon and dusk. The strongest winds are recorded in the months of July and

August. When the wind coincides with heavy snow, white-outs (locally referred to as “Viento Blanco, or

White Wind”) can cause stoppages in mining work and the movement of people and vehicles. The prevailing

wind direction is from the northwest quadrant, shifting southerly during the mid-summer months. Wind

speed and wind direction are shown in Figure 5.1.

5.2.3 Hombre Muerto Weather Station

Located in the Tincalayu Mine Weather Station in the NW corner of the salar (S25.2715°, W67.0509°), at an

altitude of 4,010 masl, 138km SSW of. Climate parameters are as follows:

Rainfall: The annual median rainfall is 63.8 mm, with the monthly highest rainfall being January with 31.4

mm. During August through November, rainfall is rare. According to recorded data, the month of January

has the highest monthly rainfall and averages close to 50% of the annual total. A measurement in February,

2014 records exceptionally high precipitation of 144mm recorded in 4 days. In the Hombre Muerto Salar,

snowfall occurs occasionally in the winter months and rainfall between November and early March.

Temperature: The average annual temperature is 4.7°C. The warmest months are January and February

with an average monthly temperature of 10.9°C and 10.3°C, respectively. The coldest month is July with a

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monthly average temperature of -28°C degrees Celsius. The maximum and minimum mean annual

temperatures are 13.9°C and -4 ° C, respectively. The absolute minimum temperature in January is -10°C

and -28°C in July, while the absolute maximum temperature is 26°C and 12°C, respectively.

Frosts: The average annual frequency of days with frost is on the order of 350 days.

There is no data for humidity or wind from the Hombre Muerto Weather Station.

5.2.4 Pastos Grandes Weather Station

Eramine Sudamerica S.A. collected information with their own weather station, the Eramine Weather

Station, sited close to their pilot plant at coordinates S24.560009° W-66.696311°, some 45km east of the

project and at approximately 3,800masl. The station gathered information every 5 minutes, totaling 8,236

to 8,930 readings for a full month.

The information was collected during April, May, June, August, September, October, November and

December 2012 and January to September 2013.

Based on this collection of data from April 2012 to September 2013, with the interruption of July 2012, the

following data was compiled (Tables 5.2.1 & 5.2.2):

Table 5.1: Climate Data collected in Pastos Grandes Salar, 2012.

Temperature: The average annual temperature is 6.3°C. The warmest months are December, January and

February with an average monthly temperature of 13.6°C, 11.2°C and 12.9°C, respectively. The coldest

month is July with a monthly average temperature of -14.2°C. The maximum and minimum mean annual

temperatures are 13.6°C and 0.2°C, respectively. The absolute minimum temperature in January is -1.2°C

and -14.2°C in July, while the absolute maximum temperatures are 26.2°C and 14.2°C, respectively.

Table 5.2 Climate Data collected in Pastos Grandes Salar 2012.

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Wind: The annual average wind speed recorded in the nearby Pastos Grandes Salar is 13.8 km/h and the

maximum annual rate was recorded in August at 75.6 km/h (Figure 5.1).

Atmospheric Pressure: In Pastos Grandes salar the annual atmospheric pressure in 2012 was 963.8 bars.

The minimum atmospheric pressure was registered in December at 944.2 bars and the maximum

atmospheric pressure was registered in August at 983 bars.

Humidity: The average annual humidity recorded in the Salar de Pastos Grandes is 23.2%. The minimum

humidity was recorded in the months of August and September with 3% and the maximum humidity was

recorded in February at 64%.

Figure 5.1 Wind Speed and Direction at Pastos Grandes

5.3 Local Resources

While no significant resources are available at the Property itself, basic first aid, accommodation and food

can be found at the village of Pocitos, some 10 kilometers distant.

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5.4 Infrastructure in the Region

No local production of basic domestic or industrial goods is found at the Property or neighbouring areas.

Most of the provisions needed are brought from Salta or San Antonio de los Cobres. The village at Pocitos,

with less than 100 inhabitants and 10 Km northeast of the Property, provides basic infrastructure including

a domestic water system and diesel based power generation of 220 volts, a first aid station with ambulance

service, public basic school and a small number of basic hosting and restaurant services. It is also the

terminus of the Puna Gasoduct, now feeding a dedicated extension for the Mina Fenix (lithium) operation at

Salar del Hombre Muerto and recently feeding the Tincalayu borate operation (borate-tincal) with a

5”pipeline connection. With the extension to Tincalayu, the pipeline in its present configuration will be fully

subscribed at peak usage, however there are several new infrastructure projects in the Puna region that are

likely to ease that shortage within 5 years or less.

The town of San Antonio de Los Cobres, at 105 km and approximately one and three quarter hour drive

from Pocitos is the center of the Department of Los Andes. With a population of approximately 6,000

people, it is an active commercial and tourist center with several hotels (2-3 stars) and a number of

restaurants that provide good support for explorers in the region.

Major infrastructure is linked to San Antonio de los Cobres and Salta with connections to Chile and other

communities of the Puna region, as shown in Figure 5.2.

5.4.1 Road Connections

National Route RN-51, passing through San Antonio de los Cobres connects Salta city in Argentina with the

port town of Antofagasta in Chile on the Pacific coast. RN-51 between Salta – San Antonio de los Cobres

segment (170 km) is more than 70% paved. From San Antonio de los Cobres, Route RN-51 leads via 140km

of well-mainlined gravel road to the international border at the Sico Pass. From there, Chilean routes 23,

367 and 365 the 300 km to Antofagasta, the most populated city in northern Chile and the largest sea

harbour in the region.

5.4.2 Electrical Power Connection

The 600 megawatt (MW), 375 kilovolt (KV) power line between Salta and Mejillones in Chile passes 35km to

the north of the Property. The line was built with the aim to transport energy from Argentina to Chile, but

was out of service from 2009. In February, 2016 the line resumed operation and transports 110 MW from

Mejillones (Chile) to the Argentinean Interconnected System. In the event that an external power supply to

Pocitos is required, a transformer station and a power line of 35 km could connect to the main line. At this

time there are also a number of photovoltaic solar projects which, along with passive solar, are becoming a

viable alternative to heretofore more traditional power supplies.

5.4.3 Natural Gas

A natural gas pipeline (Gas de la Puna) passing through San Antonio de los Cobres has its main station at the

nearby Estación Salar de Pocitos. At Salar de Pocitos there is an industrial park where a gas distribution

pipeline feeds the Mina Fenix (at Salar del Hombre Muerto) and other operations being developed in the

Puna, as the Mina Fenix and Tincalayu Mine. This is another alternative for power supply for a potential

lithium operation at Salar de Pocitos.

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Figure 5.2 General Infrastructure for the Pocitos West Region

5.4.4 Railway Antofagasta-Salta

An existing railroad between Salta and Antofagasta is administrated by two different companies: The

Chilean Ferrocarril Antofagasta – Bolivia (Luksic Group) and the Argentinean state owned Ferrocarril

Belgrano. It consists of a narrow gauge railway connecting Antofagasta (Chile) in the Pacific coast to the

northern part of Argentina with connections to Buenos Aires on the Atlantic coast. It is presently out of

service, although temporarily maintained in both country segments. The reactivation of this connection is

being promoted between the regional governments and funded by a federal infrastructure initiative. The

Chilean portion has worked hauling copper cathodes and providing general supply for the Escondida and

Zaldivar mines. More recently, it has worked intermittently transporting borates, fruit, cattle and grains

between Salta and Antofagasta. Transportation costs to the Pacific coast and the port of Antofagasta using

this link would benefit lithium operation on the Puna, in particular at Pocitos itself.

5.5 Physiography

5.5.1 Topography

The present-day Salar de Pocitos comprises an area of some 300 square kilometres of mostly flat sandy-silty

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salt crust. The Salar is bounded by surrounding mountain ranges: i) north the volcanoes of Tultul, Del Medio,

Pocitos and El Quevar; ii) to the east the Sierra de Pozuelos; iii) at the south small hills of the Sierra de

Incahuasi; and iv) to the west the El Macón and Calalaste ranges (Figure 5.3).

Figure 5.3: General Topography in the Pocitos Region

The surface area of the salar is sufficient to host evaporation ponds as envisioned by Liberty One for a

25,000 - 40,000 tonne per annum producing plant. While pond sizing has yet to be determined, a 25ktpa

lithium operation can be anticipated to require approximately 9 to 11 square kilometres of total ponds area,

including liming ponds, halite concentration ponds, potash ponds and final lithium concentration ponds. The

areas covered by minas controlled by Liberty One are in themselves more than sufficient to contain the

required ponds, but in the case the topography within the minas is not appropriate, it is possible to apply

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for a “servidumbre”, or easement for adjacent areas related to infrastructure and operations.

Development of soils in the Puna area is scarce, classified as skeletal soils of Aridisol type. These are soils of

arid zones, ocher, with very low organic matter, low fertility and coarse texture.

According to the map of the soils of Nadir and Chafatinos (UNSA, 1990), in the area of Pocitos Salar, soils are

lithosols of the Earth Group “E”. Lithosols are a type of azonal soil consisting chiefly or partly of weathered

rock fragments that are typically found on steep slopes and have no economic value. There is a relatively

wide zone of soil at the western edge of the Pastos Grandes Salar but within the salar, surface soil is crusted

salt or solid halite. According to the SEGEMAR (Argentina Geological Mining Service) classification (Soil

Taxonomy, 2006), the Pocitos salar has a saline soil type "La". Soils in the remaining territory where

consolidated rock outcrops and on natural elevations are classified as EKtc-14 and ENi -6 soils.

5.5.2 Air Quality

Air at the elevation of Salar de Pocitos is dry, at 30-40% humidity with low air oxygen levels.

Wind is intense in the winter season, especially in the afternoons, typically decreasing at night and morning.

Dust and sand storms occur occasionally, at times lasting several days, and are intense enough to carry clays

and sand in suspension. During the remainder of the year the wind is less intense and with little suspended

material. In general, air quality is good and free of infectious or harmful contaminants.

5.6 Biosphere (Vegetation and Fauna)

Salar de Pocitos has characteristics of both the “Puneña” and “Altoandina” provinces, both belonging to the

Andean Patagonian domain within the Neotropical Region (Cabrera and Willink, 1980).

5.6.1 Vegetation

Typical vegetation in the Puna area is low shrub steppe types, with specimens isolated from each other and

with bare soil between.

Excessive cold, wind and the lack of water are some of the features of the severe climatic conditions, which

bring a poor regional vegetation of xerophile and halophile types. Typical are low shrubs, rusticated plants,

tiny leaves or absence of them, presence of thorn, powerful and deep root or shallow-expanded root

systems.

The Property has zones without vegetation, as happens over the saline crust and rocky outcrops at such

high elevation.

The "Altoandina province" is situated about 4,200 masl and exhibits a cold climate all year. Precipitation is

typically snow or hail. Winds are variable and can be intense. Vegetation coverage of the surface is less than

5% and comprises herbaceous growth of low to medium height, characterized by Poaceae family as

Deyeuxia Vulva ("Iru"), D. Tristoides ("cola de zorro"), Digitaria Californica ("pasto puna"), Diplachne Dubia

("cortadera") and Distichlis Humilis ("pasto del salitral").

The "Puneña province" is between 3,200 and 4,000 masl and is characterized by dry and cold weather with

seasonal variations in temperature being less than daily. Precipitation occurs between November and April

and decreases from east to west and north to south.

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In the humid Puna places (as Salar de Pastos Grandes) the landscape is dominated by stipa and fescue

dolichophila grasses. In the highest areas of the Puna, vegetation is short having adapted to the radiation,

dryness, strong winds and severe cooling temperatures.

Over the driest areas of the Puna, scattered grasses and low shrubs occur in varying scarcity. These include:

Fabiana sp, Adesmia sp, Parastrephia sp, Bacharis sp, Maihuenopsis and Polylepis sp tomentela

(endangered), Ferozerable Prosopis (used as firewood), Trichosereus pascana (endangered and used in

construction), Larrea divaricata ("Jarilla hembra"), Artemisia vulgaris ("Ajenjo"), Haplopapus rigidus (locally

"Bailabuena" and endangered due to medicinal use), Alcantholippia deserticola phil (locally "rica rica" and

endangered due to medicinal use), Baccharis incarum ("Tola"), and Senecio eriophyton or Escalonia

Resinosa ("Chachacoma").

5.6.2 Fauna

The fauna of the Puna is characterized by its adaptation to extreme living conditions as a result of the

aridity, intense sunlight during the day and very low temperatures at night. Many animals are nocturnal,

and mostly live protected under rocks or in cracks. Others live in burrows or otherwise have adopted

behaviors allowing them to withstanding the harsh environment in which they live.

Cabrera and Willink (1980) describe the animal species in the Puneña biogeographic province. In the Pocitos

area exist camelids, including vicuña (Vicugna vicugna) and llama (Lama glama), the latter domesticated.

Fox (Dusicyon, Lycalopex) represent a carnivorous species in the area.

Among rodents common to the area, a mole, named Oculto or Tuco-Tuco (Ctenomys opimus) contributes to

desertification of large areas as it feeds on roots of local flora. Additionally, the Puna mouse (Auliscomys

sublimis) and the Chinchilla (Chinchilla brevicaudata) live in the region.

Birds in the region include the Parina or Pink Flamingo (Andean flamingo, Anas Puna); live in moist and salty

lagoons, along with the Andean Goose, (Guayata or Huallata - Chloephaga melanoptera). The queue or

quevo (Tinamotis pentlandi) inhabits the highlands and is similar to a large partridge. The Nandu enano

comparable with the species Pterocnemia pennata (its classification is questioned) inhabit the lower plains

of the region. Small parrots, pigeons and owls exist as sporadic inhabitants.

The donkey (donEquus africanus asinuskey) is a species introduced by inhabitants of the area. Although

domesticated, it competes for food with llamas and vicunas. Pumas (concolor concolor) are occasionally

seen in the region.

5.7 Hydrosphere

A large portion of northwestern Argentina lies within the area of endorheic basins region and geologically

belongs to the Puna Geological Province, as defined by Turner (1972) and the Sub-Province of Puna Austral

in agreement to Alonso and Gutierrez (1984). All waters in the Puna environment whether meteoric,

thermal sources and springs drain to closed or centripetal basins where they accumulate or evaporate.

The Salar de Pocitos lies in the Puna Region-Puna Austral region. From the hydrogeological point of view it

corresponds to the Mountainous Front Province, according to the criterion of their origin (Issar - Passchier,

1990).

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External and internal factors influencing the characteristics of the Pocitos Salar basin include Quaternary

and modern rocks occurring in the Pocitos Basin area and exhibit the highest permeability. Among them

alluvial, colluvial and terraced deposits occur in the lower slopes of mountainous terrains. Pre-existing rock

units exhibit primary permeability as a result of grain size composition as well as secondary permeability,

caused by tectonic deformation and weathering.

Low rainfall rates registered in the area and intense solar radiation result in strong evaporation of 5 to 8

mm/day, resulting in a condition of intense aridity. As a result, many closed basin collection center produces

one salt deposition each year. These hydrological systems have little to no permanent water courses.

The Salar de Pocitos is a centripetal or closed basin with its lower sector at an elevation of 3,785 masl. The

basin is fed by temporary streams coming from the northwest, west drainages from the El Macon Range,

east (Arroyo Agua Amarga), and from northeast (drainages from the Quebrada de Mamaturi which drains

the El Quevar volcano).

The outstanding features of this basin, from the geomorphologic - hydrological point of view include the

alluvial cone developed by Rio Agua Blanca, draining from El Quevar Mountain to the northeast, and a wide

alluvial cone associated with the un-named stream draining the Tertiary red-bed sediments that passes

west to east through the south-central portion of the Pocitos West property. The origin of the streams is

from snow melt, seasonal rainfall and to a lesser extent from geothermal sources. Alluvial cones according

to the grain size of the particles and transport energy of streams are divided into three sectors:

a) Apical, consisting of thick and coarse materials, associated with the maximum gradient or altitude and

producing the largest recharge of water, although this also occurs along all its extent due to precipitations

and associated infiltration.

b) Medium comprised of materials of smaller grain sizes with respect to the apical.

c) Distal, made up of fine grain material in the area where water emerges to the surface and the closest to

the salt lake (Salar). Marsh or fresh water springs are seen in this sector.

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6. HISTORY

The mining and exploration history of the Pocitos salar includes mainly exploration for ulexite (borates) and

minor exploration and development for sodium sulphate at the southern extreme of the basin. Lithium-

related activity included a 1979 regional program by Dirección General Fabricaciones Militares (DGFM),

more recent work by Lacus and Li3E, consisting of near-surface sampling and geophysics; and geophysics

surveys reported by Pepinnini Minerals and by Millennial Lithium.

Pocitos salar was one of many in Chile, Argentina, Bolivia and Peru that were explored in the early 19th

century, primarily by the Pacific Coast Borax Company, the predecessor of Rio Tinto Borax. There has been

intermittent small scale mining for ulexite at Salar de Pocitos, but nothing on the scale of the borate mines

at Hombre Muerto, Diablillos, Centenario or Cauchari.

The southern portion of Pocitos Salar has been the site of intermittent sodium sulphate development and

small-scale mining. As reported by DGFM, a 20cm bed of sodium sulphate had been mined in the southern

sector. Largely inactive due to lack of infrastructure and market, the area has been considered for

exploitation to supply the mineral to various potential lithium producers with brine deficient in SO4 for

evaporation processes.

Both Li3E and Lacus Minerals reported in 2010 the results of geophysics and surface sampling programs for

the same area within the core of the salar, to the east of the Liberty One Lithium properties. Lacus reported

a 95 sample program with a minimum of 6.8 meter deep hand-dug holes. The sample map (but no

numerical assays) reported by Lacus indicates scattered surface anomalies for Li, of up to 194 mg/L.

Both Lacus and Li3E reported results of geophysics surveys. Both were variations of conductivity surveys,

identifying and quantifying an estimated depth for conductive layers that can be interpreted in this setting

to be brine-rich sections. The Li3E report claimed to have identified potential brine bearing section from

near surface to as deep as 550 meters throughout their 4km long survey profile. Lacus measured 42

conductivity (VES) stations immediately to the east of the current Liberty One claims, and claimed to have

identified near surface and discreet deep brine aquifers. The near surface aquifer lies at an average 10

meters depth and is an estimated 40m thick. Lacus claimed the deeper conductive horizon lies at 150meters

to the top of the conductor, and is on average 140m thick.

In February 2017, Pepinnini Minerals Ltd. reported the results of resistivity surveys over their properties on

both the east and west margins of the salar. They reported finding up to three conductive layers over an

average thickness of 181 meters from as shallow as 2.1 meters to as deep as 264 meters.

Also in February 2017, Millennial Lithium in partnership with Southern Lithium contracted a Transient

Electromagnetic Survey (TEM) covering 20.25 square kilometres at the north end of the Pocitos basin. The

results indicated a continuous north-south trending conductive unit over a distance greater than 6

kilometres, the full length of their “Cruz” Property.

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7. GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

The Salar de Pocitos sits in the vicinity of the intersection of two main geological features consisting of

north-south structurally controlled basins and northwest magmatic-structural corridors. The intersection

between these structural units has a significant influence in the evolution of the western portion of the

Central Andes of South America. The north-south structures exhibit in general periods of normal and

reverse faulting, whereas the north-west structures are characterized by reverse and dextral offsets (Coira

et al., 1982; Marret et al., 1994; Allmendinger et al. 1997; Chernicoff et al., 2002).

These structural features are of regional-continental scale, and were developed inland on the western

continental margin from at least the middle Paleozoic. Periods of compression and relaxation are

characterized by reverse and normal faulting, forming a succession of basin and range style morphology

along the continental back-arc regions. This is a consequence of a compressive-erosive subduction

contributing to the uplift of the Puna/Altiplano highland terrains. These elevated enclosed basins hosted

high altitude seas and lakes that evolved as extended inland depressions. The intersection of the north-

south and north-west main features and other northeast structures generated weak spots where

magmatism and hydrothermal activity has been developed at least from the Cretaceous.

This main set of structures and especially those of northwest orientation repeat along intervals of 80-150

km (Figure 7.1), conditioning succession of magmatic-hydrothermal-mineralization northwest oriented

corridors at the Argentinean-Chilean-(Bolivian) Altiplano (Puna). The best developed from north to south

include the Calama-Olacapato-Toro in the area of Salar de Pocitos, Archibarca-Cerro Galan (Hombre

Muerto) and the Culampajá in the southern portion of the Puna Block (Figure 7.1).

In the Pocitos area several parallel north-south structures intercept the Calama-Olacapato-Toro lineament

characterized by Upper Miocene-Oligocene acidic-intermediate volcanism and development of large

volcanic cones including the nearby Cerros del Rincon-Tultul-Del Medio-Pocitos, and to the east, El Quevar-

El Azufre and the Acay systems. Large ignimbrite fields, major caldera nests, surge pyroclastic fields, as well

as hot spring systems have contributed calcium-magnesium and sodium-potassium-lithium and boron

anomalous solutions that have concentrated in the basins over time. These concentrations occur

throughout the geologic column at different levels and positions of the salt lakes and salars dating from the

early Tertiary.

The lithology of the area is comprised of Precambrian meta-sediments consisting of slates and phyllites of

the Puncoviscana Formation and Lower Ordovician turbidites (shales and sandstone) of the Caucota and

Copalayo formations. These sedimentary units are intruded by Late Ordovician granitoids (Oire Eruptive

Complex or Eruptive Belt of the Puna), consisting of large feldspar dacitic porphyries, granites and

granodiorites. These rocks are overlain by Tertiary continental sedimentary units (Pastos Grandes

Group/Geste, Pozuelos, Sijes, Singuel Formations) consisting of red-beds, tuffs, halite, borates and gypsum.

The Tertiary sedimentary units are covered by Upper Miocene volcanics, characteristically dacitic lava flows

and subvolcanic intrusions (Aguas Calientes Formation), dacitic tuffs and ignimbrites of the Tajamar

Formation. The sequence is topped by Recent-Quaternary sediments covering the upper part of the salar

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basins with salt deposits, slope deposits and eolian sandstones (Turner, 1972).

Figure 7.1: Structural setting of Puna Region showing location of Salar de Pocitos.

7.2 Local Geology

7.2.1 Geomorphology

The setting corresponds to the Puna Austral or Salto-Catamarqueña (Alonso et al 1984b), comprising a

30

series of physiographic and structural aspects that distinguish it from the Northern Puna or Jujeña. The

Puna, in general, consists of raised blocks separated by endorheic elongated basins occupied by evaporite

deposits, or salars. The ridges separating the basins have a north-south orientation and are typical in form

of uplifting in blocks as the result of reverse faulting.

The area of the Pocitos West claims lie in an area of higher relief, up to 100 m in elevation above the Pocitos

salt flats.

The Pocitos Salt Flats, together with the Rincon Salar lie within the same original tectonic depression,

bounded to the east by the Pozuelos Ridge (4,981 m) and to the west by the Macon summits (5,548 m). The

“del Medio”, “Pocitos” ad Tul-Tul Neogene volcanoes, ranging 5,314 m 5,100 m, constitutes the northern

boundary of the salt lake north of which the Rincon salt lake is located. The Los Pozuelos ridge constitutes

the eastern boundary of the basin, while the Macon - Calalaste mountain ranges define the western

boundary.

The eastern and western margins of the salar have distinctly different geometries. On the western margin,

the boundary between the clastic alluvial fan facies and the evaporitic facies is well defined: the alluvial

deposits constitute terraces elevated with respect to the salar. On the eastern edge, the contact between

the distal accumulations of the Pozuelos ridge and the evaporitic deposits is gradual. There, remnants of

sandy-loam deposits with scattered gypsum and gypsum intercalations are evident, suggestive of a slightly

humid climatic pulse that briefly interrupted the typical Holocene aridity.

Pocitos is a mixed type salar: terrigenous and evaporitic. The terrigenous facies are composed of clay, silt

and fine sand with salt efflorescence and crystalline matrix. The evaporite facies varies from north to south,

but occurs mainly as a salt crust. On the surface, two morphological types of saline crust have developed,

distinguished by color, one light brown and the other white with light grey. The surface varies between

rough and hard throughout the central salar, with a smooth surface occurring primarily at the margins.

The Tertiary-aged sedimentary deposits along west margin (to the south and west of the Liberty One claims)

have little resistance to erosion, showing rounded reliefs and in some cases forming badlands.

The surface runoff in the northern Pocitos Salt Flat is southward; towards the south the salar is dry. The

wettest areas correspond to the contact of alluvial fans with the margins of the salar. The in-flow of water

from the south end of the salar is at times more intense, at times forming “vegas” and small lagoons

(Aguada de Huapal).

The greatest number of perimeter springs are located at the salar’s northern end, at the foot of the Tul-Tul

volcano. In this sector, the salt hosts subsurface water and even forms swampy areas in the summer.

At the eastern margin of Pocitos salar, the contributions of flow are more evenly dispersed, sourced from

the western flank of the Pozuelos ridge. The most important contributions are those of the Quebrada

Honda River and of the Incahuasi ravine, sourced from the Quevar and Azufre mountains.

Although the network of streams that originate from the eastern foothills of the Calalaste-Macon mountain

range is dense, the porosity of the sediments through which they travel and the great distance to the

western margin of the salar, suggests that the flows from that areas are almost nonexistent, excepting the

Quebrada de Macon, which flows during summer.

31

7.2.2 Geology

Ordovician

Copalayo - Coquena Formations and equivalents

Ordovician sedimentary Tolar Chico, Las Vicuñas, Coquena and equivalent Formations are widely distributed

in the area; comprised of mainly fossiliferous metapelites and metapsamites, they are associated with

magmatic units, including pillow basalts, and pyroclastic and ecliptic rocks (figures 7.2, 7.3 and 7.4).

Ordovician outcrops located east of Pocitos Salt Flats (Pozuelos Rim, Unquillal Hill and Copalayo Rim) are

composed of shale, limolite and yellowish-green sandstone, with evidence of low-grade regional

metamorphism and intercalations of submarine acid volcanic material up to 1 m thick.

Upper Ordivician - Silurian

A set of Ordovician outcrops in the Western Puna area form a volcano-sedimentary and intrusive belt

known as the Eruptive Strip of the Western Puna. Assigned to the Upper Ordovician (Coira et al., 1999), the

Chachas, Taca Taca (419 ± 16 Ma), Arita (419-418 Ma), Macón - Navarro (429 ± 36 Ma) and La Chance occur

in the mountain ranges between Arizaro and Pocitos basins.

In the Macon range, granodiorites can be identified, varying from tonalites and granites with biotite and

hornblende, with alanite, apatite, zirconium and titanite. They are coarse-grained and their colors vary from

gray to pink. The associated pluton is shallow and contains microgranular mafic fragments.

At the southern end of the Pocitos Salt Flats mafic and ultramafic rocks (gabbro and serpentine) are well

developed. These occur as fine layers interspersed between the greywackes.

Figure 7.2: Strongly folded outcrops of the Coquena Fm. in Pozuelos Ridge

32

Figure 7.3: General Geology on the Salar de Pocitos Basin

Cross Section EW Sierra del Macon- Filo de Colapayo

33

Figure 7.4: Cross Section EW Sierra de Macon- Cordon de Pozuelos

Tertiary sediments

Pastos Grandes Group

Tertiary sedimentation began in a single basin developed on a Precambrian-Paleozoic basement. During its

evolution, the basin was divided into smaller basins, each of which shows a remarkable vertical

development due to subsidence. This continental clastic sedimentation, with intercalations of evaporites

and pyroclastites, due to the lithological differences, was divided in three formations (from base to

uppermost): Geste, Pozuelos and Sijes, to which later one more unit was added, the Singuel Formation. In

the area of the Liberty One mines, only the Geste and Pozuelos formations are represented.

Geste Formation: The Geste Formation demonstrates a strong angular discordance with the Ordovician

sedimentary rocks of the Copalayo - Coquena Formation. It is comprised of conglomerates, argillaceous

sandstones and sandy marls of intense reddish to purple color. The thickness of the formation is laterally

variable. Turner (1960) estimated the thickness at 1500 meters, while Gutierrez (1981) measured 550

meters. It should be noted that both authors considered the thickness in different sections. Gutierrez

(op.cit.) considers as Formation Pozuelos part of what Turner includes in his Geste Formation. At the level of

the El Paso gorge the Formation measures 150 meters thick, according to Alonso, 1986. Based on its fossil

content it has been assigned a Paleogene age, which corresponds to the Mammalian age.

Pozuelos Formation: Above the Geste Formation are superimposed conglomerates, sandstones, sandy

fangolites, argillites and evaporites of reddish brown, light brown, pink and gray, belonging to the Pozuelos

Formation.

The lower part of the profile is predominantly composed of conglomerates and marly sandstones. Towards

the upper limits are politic material and evaporites. The middle proton hosts younger saline deposits,

whereas in the upper third there is a deformed mass of rock salt that has been described and defined as the

"Pastos Grandes salt megalobody" (Alonso et al., 1984). Towards the upper limit the formation becomes

pelitic with some intercalations of gypsum, tuffs, tuffites, and borates.

Based on profile measurements Alonso (1986) considers a minimum thickness of the formation of 1500

meters. The age is estimated on the basis of dating on zircon crystals in tuffs that gave an age of 7.6 Ma

(Vandervoort, 1995).

34

Tertiary volcanics

Tertiary volcanism covers the northern end of the basin with lava and ignimbrites. These are linked to the

complex formed by the Tul-Tul strata from the Middle and Pocitos to the north, and to the northeast the

Quevar Volcanic Complex (Figure 7.4).

The Tul Tul, Medio and Pocitos peaks have a main body formed by hypersensitive hornblende or

lamprobolitic andesite. Andesitic flows and fall deposits are also linked to the activity of this complex.

To the north and east, the Quevar Volcanic Complex includes a wide variety of lava types (andesites, dacites

and rhyolites) and ignimbrite deposits.

Quaternary

Surface sediments

Quaternary terraces were developed on the western margin of Pocitos Salt Flat. These comprise

intercalations of sediments of variable granulometry, from gravel and sand to silty - loam facies. Silty clay

facies correspond to lake deposits, while the sand and gravel represent river environments (Figure 7.5).

Figure 7.5: View east from the Project area. In the foreground are terraced Quaternary deposits, to the right

outcrops of the re-worked Tertiary sediments, behind which are evaporite deposits of Pocitos salar, and in the

background the Copalayo ridge.

Terraces elevated above the salar are indicative of active tectonism in the region from the Tertiary to the

present.

35

Neo-tectonism is evident in the anticline which elevated the Los Colorados ridge. The ridge is comprised of

folded continental Tertiary and Quaternary sediments.

Piedmont deposits

Cones and coalescent alluvial fans formed by the streams that drain the Pozuelos ridge and flow into the

salt comprise piedmont deposits in some areas surrounding the salar. The granulometry is mainly coarse

with intercalations of sand and gravel. In the distal parts, the transition to the evaporite facies is evident, in

the form of interbedded finer grained sediments and lacustrine sediments.

Evaporite deposits

Pocitos is mixed-type salar, consisting of surficial terrigenous classics and crystalline halite. There occurs a

marked zonation of the evaporitic facies in the longitudinal direction as shown in Figure 7.6.

Figure 7.6: View of the western sector of the Pocitos salt flat where terrigenous/evaporite facies are exposed

Ulexite and caliche-travertine accumulations occur in the northern areas of the salar, halite and gypsum

predominates in the center, and southern portion is dominated by selenite and mirabilite-thenardite

(Battaglia et al., 2001).

According to Battaglia, the evaporitic mineralization of Pocitos salar is related to the activity of old thermal

springs aligned along the fracture define the eastern edge of the salar. Solutions rich in boron, lithium,

chlorine and sulfur of hydrothermal origin ascended to the surface through fractures associated with

magmatic chambers related to the Pocitos, Tul Tul and del Medio eruptive complex that constitutes the

northern limit of the salar.

36

8. DEPOSIT TYPES

Pocitos Salar is classified as a “Silver Peak, Nevada” type terrigenous salar. Silver Peak, Nevada, USA was

the first lithium-bearing brine deposit exploited in the world. Lithium-enriched brine deposits associated

with this type of setting are characterized by containment in restricted basins within deep structural

depressions filled with sediments, typically interbedded units of clays, salt (halite), sands and gravels.

Typical of these cases, at Pocitos the salar surface is presently comprised of clay, silt and sand, with sodium

chloride, sulphates, carbonates and borates.

Continental brines are the primary source of lithium products worldwide. Bradley, et al. (2013) noted that

“all producing lithium brine deposits share a number of first-order characteristics: (1) arid climate; (2) closed

basin containing a playa or salar; (3) tectonically driven subsidence; (4) associated igneous or geothermal

activity; (5) suitable lithium source-rocks; (6) one or more adequate aquifers; and (7) sufficient time to

concentrate a brine.” Large deposits are mined in Chile at the Salar de Atacama (SQM and Albemarle), In

Argentina at Salar de Hombre Muerto (FMC); the Olaroz salar basin (Orocobre), and in Clayton Valley,

Nevada (Albemarle), the only North American producer.

Recent discoveries, particularly in northern Argentina illustrate the importance of sedimentary sequences in

the host basins. Discoveries since 2010 in the Cauchari, Olaroz, Centenario and Pastos Grandes salars

involve deeper, early basin in-fill coarse sediments hosting lithium and potassium-enriched brines. It

appears that as the regional tectonic relaxation gave rise to pull-apart basins, the first sediment to fill these

basins were coarse, higher energy sediments derived from the nearby steep terrain. These coarser

sediments have more and larger pore spaces, increasing the transmissivity of the formation. As the basins

filled and the higher topography was eroded, the sediments tended to become finer. Runoff and

hydrothermal fluids concentrated in the closed basins, common salt (NaCl) tended towards saturation,

while lithium, boron, potassium and other elements became more concentrated as fresh water evaporated

at the surface, and in particular at the basin margins.

As the trapped fluids became brackish and eventually evolved into brines containing greater than

10,000ppm contained salts, the density increased, typically to slightly in excess of 1.2g/cm3. The more dense

brine tends to separate and sink beneath fresh water and less saturated solutions, and even to start

migrating outwards beneath the encroaching fresh water at the basin margins.

Lithium concentrations tend to increase in a direct relationship to density, thus it is not surprising to find

more consistent and higher grades at depth. The deeper, coarser sediments at the same time tend to make

higher yielding aquifers. The Pocitos program will focus on exploration for brine, testing for lithium content,

and in addition will target deeper sediments to both increases the probability for resource and to improve

well brine yields, which has the potential to reduce operating costs if the project is developed.

37

9. EXPLORATION

The only work to date completed on behalf of the Company has been desktop research and a

conductivity/resistivity geophysical survey consisting of Vertical Electric Sounding (VES). This survey was

conducted to define subsurface concentrations of conductive brine. This field work was contracted by

Millennial Lithium on behalf of Liberty One.

9.1 Vertical Electrical Sounding Survey (VES)

A Vertical Electrical Sounding (VES) survey was conducted by Tecnología y Recursos (Technology and

Resources), a Salta-based geophysics firm that specializes in this type of work. The primary objective of the

program was to detect and trace the sub-surface extent of the salar brine beneath the recent alluvial cover

comprising most of the Liberty One properties. Eleven (11) survey sites were measured, one for each of the

Liberty One properties. The VES survey point locations are shown in Figure 9.1.

Figure 9.1: Location of the measured SEV stations at Pocitos West

38

The VES readings are modeled on a simplified 4 layer basis, comprising the following packages as defined by

Tecnología y Recursos (Figures 9.2 and 9.3) in which conductive and resistive layers are defined as:

HRS: Upper Resistive Layer. In the Pocitos west these are likely dry alluvial sediments.

HCS: Upper Conductive Layer. This might represent saturated to semi-saturated alluvium, or possibly a

mixed halite. In the case of sediments, the resistivity values suggest fresh to brackish fluids.

HCI: Lower Conductive Layer. This can be either consolidated clay-dominant sediments, brine-saturated

coarser sediments, or a combination of both.

HRI: Lower Resistive Layer. Possibly Tertiary sediments or a clay-rich aquitard with reduced fluid content.

As shown in the longitudinal section, the lower conductive layer was detected over most of the 25 kilometer

length of the north-south section. Furthermore, the west-east section suggests that the lower conductive

layer is relatively flat, as would be expected of buried paleo-salar sediments as opposed to tilted basement

material.

Figure 9.2: Distribution of the layers the underground layers. Resistivity model at Pocitos West: (N-S Section).

Sections show resistivity measures in ohm/metre and VES stations survey locations.

Figure 9.3: Distribution of the layers building the underground resistivity model at Pocitos West (East-West Section).

39

10. DRILLING & PUMPING TESTS

The Pocitos West properties have not yet been drilled. The plan is to initially drill as many as three

exploration core holes to test the extension of the potential brine-saturated zone, represented by the HCI

response in the VES analysis. If this initial reconnaissance drilling program is successful, the Company will

complete the core holes with two inch diameter casing as monitoring wells for follow-up well drilling.

The core drilling will be undertaken using a local drilling contractor employing a portable drilling machine,

typically a Sandvik DE710 or Atlas-Copco c6c, which are readily available locally, or equivalent machines of

the same or greater capacity. Core size is HQ (63.5mm OD core) or NQ (47.6mm OD). Sampling for fluids in

the formation is undertaken while drilling using a drive-point sampler (Figure 10.1), or post-drilling using a

hydraulic double-packer (Figure 10.2).

Figure 10.1: Diagram of use of Drive Point Device System.

Figure 10.2: Double Packer

40

The drive point system entails lowering a perforated vessel, or drive point (Figure 10.1) through the empty

core barrel into the sediments beneath the coring point. The drive point is sealed to prevent the ingress of

drill hole fluids. Once the pipe above the drive point is confirmed to be dry, the seal is perforated, allowing

the fluids in the drive point and entering through the screened orifices to enter the pipe. That fluid is then

sampled using simple bailing tool.

The double packer system is the same as that commonly used in oil and gas exploration. As shown in Figure

10.2. The packer consists of two inflatable seals (packers) that are inflated using hydraulic pressure to seal

off discreet interval in an open drill hole. Once the seals have been inflated, the intervening interval is

cleaned by injecting water and the competence of the seal is tested. On confirmation that the zone is

sealed, the flow is reversed to obtain a depth-specific sample of the desired interval.

If a pumping test well is justified by the core drilling results, a hole will be drilled using conventional rotary

techniques. Ideally the hole will be drilled with a 16” diameter and the well-constructed with 10-inch

diameter slotted casing, isolated from the formation by a filter consisting of gravel of a size appropriate for

the formation and casing slot size. A typical design is 0.5 -0.75 slots in the casing and 1.0-1.5 mm gravel.

41

11. SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 Sample preparation

The program for preparation, assaying, physical parameters and security, as recommended to the Company,

are indicated in the following parameters. Neither porosity samples (core) nor chemistry samples (brine)

will be subjected to additional preparation prior to shipment to participating laboratories. After the samples

are sealed on site, they will be stored in a cool location and then shipped in sealed containers to the

laboratories for analysis.

11.2 Sample Analyses

Porosity analyses will be conducted by Core Laboratories Petroleum Services Division, Houston, Texas. Core

Laboratories provides state of the art petrophysical and geological analysis and interpretation of core

samples from rock, and has demonstrated that its Quality Management System is in compliance with ISO

9000-2008 Certificate of Registration. Selected representative samples are to be submitted for laboratory

analyses.

Brine chemistry samples will be analyzed by laboratories with known and verifiable experience analyzing

lithium-bearing brines. One of the logical choices for the Pocitos West project includes Alex Stewart

Laboratory in Mendoza, Argentina. Accredited to ISO 9001, they operate according to Alex Stewart Group

standards consistent with ISO 17025 methods at other laboratories. Selected duplicate samples are to be

sent to a second accredited laboratory, as part of the QA/QC procedure.

11.2.1 Laboratory Analytical Procedures for Drainable Porosity

Laboratory analytical procedures for drainable porosity by centrifuge, as described by Core Laboratories

consists of the following steps

1. Cut 38mm (1.5-inch) diameter cylindrical plug from sample material (plunge cut or drill); typical

length is about 45 mm (1.75-inch).

2. Freeze sample material with dry ice if needed to maintain integrity.

3. Caliper bulk volume of the cylindrical plug, and weigh sample.

4. Encapsulate plug as needed in Teflon and nickel foil, with nickel screen on ends of plugs, and weigh

encapsulated sample (Figure 11.1).

5. Calculate bulk density as (mass of plug before encapsulation)/(Caliper bulk volume).

6. Place plug in brine and saturate under vacuum to ensure full saturation: A sample of brine was from

the project area will be shipped to Core Laborites for this purpose.

7. Record weight of saturated core.

8. Desaturate samples in high speed centrifuge for 4 hours. Spin rates are calculated to give drainage

pressure of 1 pound per square inch (psi) for poorly cemented or loose sands; and 5psi for clay and

halite. Pressure is calculated at the center of the plug placed in the centrifuge.

42

9. Collect any drainage and record volume; discard drained fluid. (Fluid collected from these cores is not

representative of in situ brines, due to re-saturation with NaCl.

10. Remove plug from centrifuge and record weight.

a. Drained fluid volume is calculated as (saturated plug weight – drained plug weight)/density

b. Drainable porosity is calculated as (Drained fluid volume)/(Caliper bulk volume)

Drainable porosity is given as a fraction of the total rock volume and is unitless. For example, if a rock has a

volume of 100 milliliter (ml), and 10 ml of fluid can drain from the rock, the drainable porosity is 10/100, or

0.10. Although determined by laboratory methods, the drainable porosity is essentially the same as specific

yield as defined in classical aquifer mechanics.

Figure 11.1: Screened and wrapped pucks for drainable porosity by centrifuge

11.2.2 Laboratory Analytical Procedures for Total Porosity

After drainable porosity measurements, the plug samples from the centrifuge are analyzed for total

porosity, using the following steps:

1. Oven dry sample for 5 days at 115.6 degrees Celsius (240 degrees Fahrenheit)

2. Weigh oven-dried sample

3. Assume that all weight loss is pure water lost from pore space: Therefore volume of water lost

due to oven-drying is calculated as

43

4. ((Drained plug weight)-(Oven-dried plug weight))/(water density of 1 g/cc)

5. Total porosity is calculated as ((Drained fluid volume) + (Oven drying fluid loss))/(Caliper bulk

volume)

Total porosity, like drainable porosity, is given as a fraction of the total rock volume and is unitless.

11.2.3 Laboratory Analytical Procedures for Brine Chemistry

Samples from Pocitos west will be analyzed by a laboratory selected for extensive experience in lithium

brine analysis and based on performance judged from the results of an ongoing “round robin” of analyses

for samples from the nearby Pastos Grandes project to select laboratories on the basis of best performance

in terms of accuracy and precision.

Table 11.1 lists the basic suite of analyses requested from the labs. Each laboratory uses the same methods

based upon American Public Health Association (APHA), Standard Methods for Examination of Water and

Wastewater, Environmental Protection Agency (EPA), and American Society for Testing Materials (ASTM)

protocols. Physical parameters, including pH, conductivity, density, and total dissolved solids are

determined directly upon brine samples. Determination of lithium, potassium, calcium, sodium and

magnesium is achieved by fixed dilution of filtered samples and direct aspiration into inductively coupled

plasma instruments (Table 11.1).

Table 11.1: List of the Basic Suite of Analyses for Lithium-Bearing Brine Samples

Analysis Type Alex Stewart University of Antofagasta Acme Method Description

Physical Parameters

Total dissolved solids SM 2540-C APHA 2540-C 2B05-B Total Dissolved Solids Dried at 180°C

pH SM 4500-H+-B APHA 4500-H+-B 2B02 Electrometric Method

Conductivity SM 2510-B APHA 2510-B 2B03 Meter

Density IMA-28 Pycnometer 2B14 Pycnometer

Alkalinity SM 2320-B APHA 2320-B 2B06 Titration Method

Alkalinity (carbonates) SM 2320-B APHA 2320-B 2B13-B Titration Method

Alkalinity (bicarbonates) SM 2320-B APHA 2320-B 2B13-B Titration Method

Inorganic Parameters

Boron (B) IMA-23-Version

1 APHA 4500-B-C 2C Carmine Method

Chloride (Cl) SM 4500-Cl-B APHA 4500-Cl-B 2B12 Argentometric Method

Sulphates (SO4) SM 4500-SO4-C APHA 4500-SO4-C SO4 Gravimetric Method with Ignition of Residue

Dissolved metals

Lithium (Li) ICP-13 APHA 3500-Li-B 2C Direct Aspiration - ICP or AA Finish

Potassium (K) LACM16 APHA 3500-K-B 2C Direct Aspiration - ICP or AA Finish

Sodium (Na) LACM16 APHA 3500-Na-B5 2C Direct Aspiration – ICP or AA Finish

Calcium (Ca) LACM16 APHA 3111-B-D 2C Direct Aspiration – ICP or AA Finish

Magnesium (Mg) ICP-13 APHA 3111-B-D 2C Direct Aspiration - ICP or AA Finish

44

11.3 Quality Control Results and Analyses

Analytical quality will be monitored through the use of randomly inserted quality control samples, including

standards, blanks and duplicates, as well as check assays at independent laboratories. In each batch of

samples submitted to the laboratory, at least one blank, one low grade standard, one high grade standard

and two sample duplicates will be included. Approximately 38 percent of the samples submitted for

analysis are to be quality control samples.

45

12. DATA VERIFICATION

Independent Qualified Person Nivaldo Rojas has conducted the following forms of data verification:

Visit to the Project site, controlling drill hole proposal, infrastructure and the proposed base of

operation at the village of Pocitos;

Review of publicly information on the geology of the Salar de Pocitos.

46

13. MINERAL PROCESSING AND METALLURGICAL TESTING

The Property is at a relatively early stage of exploration. No metallurgical testing or assessment of potential

mineral processing regimes has been conducted to date. Such testing and assessment will follow in the

recommendations outlined in this report.

47

14. MINERAL RESOURCE ESTIMATES

The pre-exploration work conducted to date for the Pocitos West Property is preliminary and includes

mainly research of regional and local geology and comparative studies of similar setting with known lithium

resources in this region. It is not possible at this stage to develop a resource or reserve estimates with the

existing dataset, nor to comment on resource potential

48

15. MINERAL RESERVE ESTIMATES




existing dataset, nor to comment on resource potential.

49

16. MINING METHODS




existing dataset, nor to comment on mining methods.

50

17. RECOVERY METHODS




existing dataset, nor to comment on recovery methods.

51

18. PROJECT INFRASTRUCTURE

Infrastructure for the project consists of existing roads, and facilities available at the local village of Pocitos.

Camp and communications will be provided in the village between The Company’s local operating partner

Proyecto Pastos Grandes, S.A., and drilling contractor Hidrotec S.R.L.

The camp consists of a combination of rented local accommodations, and portable housing, office, sanitary

and commissary units. Power for the camp and office facilities is provided part of the time by the local

village authorities, and consists of a diesel-fueled generator and local distribution network.

Gas from the Puna gas pipeline is to be made available in the village, but has yet to be fully connected and

commissioned. Compressed propane for heating and cooking in the camp will be brought in by the

Company’s operating partner and the drilling/camp contractors.

Fuel for the drilling operations is purchased from the national oil company, YPF and transported to site by a

local Salta provider, Petroandina. Fuel storage at first will be provided by the drilling contractor. If results

justify further investment, the company will permit and invest in a dedicated fuel depot, to which YPF will

deliver directly.

52

19. MARKET STUDIES AND CONTRACTS

The project is at the preliminary exploration stage and does not yet support or justify neither market studies

nor commitments to supply. Justification for the project is provided by existing market conditions for

lithium compounds, particularly in the high growth lithium battery market. Current global supply is

struggling to meet the explosive growth in the market.

According to Goldman Sachs (2016), lithium demand is estimated to triple from 170,000 metric tonne per year (tpa) of lithium carbonate equivalent (LCE) in 2015, to as much 530.000 tpa in 2025. This is led primarily by lithium battery demand growth, which is considered reasonable to a little bit optimistic. as shown by the new lithium projects and forecasted new industry demand.

53

20. ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITES STUDIES

An environmental report approved by the office of the Provincial Mining Secretary is required for all stages

of exploration and mining activity in Argentina. The Province of Salta requires that environmental impact

reports for exploration specify not only the type of activity and the anticipated environmental impact and

mitigation methods, but that the report includes a notification of completion of community consultation.

The EIR was first presented in January, 2017. Answers to observations were presented in May, along with

the notification of the community consultation. Approval of the report is anticipated in July.

54

21. CAPITAL AND OPERATING COSTS

Capital and operating costs have not yet been determined.

55

22. ECONOMIC ANALYSIS

An economic analysis has not yet been determined pending exploration results.

56

23. ADJACENT PROPERTIES

A number of mining tenements surround the Property addressed in this Technical Report. They are

identified in Table 15.1. These properties have been classified according to their name, registration file

number, surface (hectares) and name of the registered concessionary, including some important

observations, at the Mine Court of Salta. Property distribution is shown in the claim map in Figure 15.1

indicating relevant ground coverage by individual concessionaries. These relevant properties are presently

controlled by Pepinnini Minerals Ltd. (ASX: PNN); Pure Energy Minerals Ltd. (TSXV: PE); Southern Lithium

Corp (CVE: SNL); and Millennial Lithium Corp. (TSX.V) Other nearby active properties includes Surnatron;

Latin American Minerals Argentina S.A., and minor coverage by third parties.

Table 15.1: Mining Properties at properties valid a Salar de Pocitos

Name File Hectares Ownership Status

LINDA 20326 487,25 Vacant - Pending the opinion of REMSA

TABAPOCITOS 02 20017 2964,49 PEPINNINI S.A.

TABAPOCITOS 01 19984 1100 Third parties

POCITOS 1 22741 1388,00 PEPINNINI S.A.

PAYO PO 301 22229 605,38 Vacant -REMSA

POCITOS 303 20578 695,16 Mine to released. Not yet published in official bulletin

Pocitos 213 20179 1503,00 Vacant or mining cadastre not updated

TABAPOCITOS 04 20015 968,95 Vacant or mining cadastre not updated

ARENAS BLANCAS I 22110 1309,09 ADRIEL ALEXIS ARENAS

GIOVI 21966 100,00 MINERALES DE ALTURA S.R.L.

AMARGA 01 21962 1500,00 RAFAEL ARGAÑARAZ OLIVERO

AMANECER 17745 2500,00 LEA ELIANA CRUZ (Millennial - Southern Lithium)

JIM 21048 3500,00 LATIN AMERICAN MINERALS ARGENTINA S.A.

LOLITA II 21507 6000,00 Mine to release. Not yet published in official bulletin

QUEVAR DECIMA NOVENA 20706 4493,52 SILEX ARGENTINA SA

PAPADOPULOS LVII 19786 628,32 LITHIUM ARGENTINA RESOURCES S.A.

LA BLANQUITA II 19922 620,95 EUSEBIO ROBERTO ALEGRE

CATEO 20953 6879,00 MINAS ARGENTINAS S.A.

CATEO 20953 2da lib 715,24 Area to release. Not yet published in official bulletin

QUEVAR VIGESIMO SEXTA 22087 992,00 SILEX ARGENTINA SA

QUEVAR SEXTA 19992 2494,00 SILEX ARGENTINA SA

QUIRON II 21370 2933,00 SILVIA RENE RODRIGUEZ

SUI 21049 1388,30 LATIN AMERICAN MINERALS ARGENTINA S.A.

POCITOS 19575 100,00 MARIO ANGEL BLAS MONCHOLI

DOÑA JACINTA SEGUNDA 21115 2292,00 LATIN AMERICAN MINERALS ARGENTINA S.A.

DOÑA JACINTA SEGUNDA BL 21116 1984,00 LATIN AMERICAN MINERALS ARGENTINA S.A.

POCITOS 1 19457 1516,00 EKEKO S.A.

POCITOS 2 19458 532,078 EKEKO S.A.

POCITOS 3 19459 800,00 LAROTONDA CLAUDIO ANTONIO

POCITOS 303 20578 695,00 Area to release. Not yet published in official bulletin

CATEO 19287 – 1º 1500,00 Area to release. Not yet published in official bulletin

CATEO 19287 – 2º 1138,69 Area to release. Not yet published in official bulletin

AGUAMARGA 1 19083 2756,28 Vacant

POCITOS 6 19462 576,06 LAROTONDA CLAUDIO ANTONIO

57


POCITOS 7 19463 800 EKEKO S.A.

POCITOS 304 20579 342,08 Area to release. Not yet published in official bulletin

POCITOS 9 19465 599,33 Lapis Argentina Compañía Minera S.A

POCITOS 10 19466 340,19 Vacant -REMSA

Pocitos 214 20180 1313,29 Vacant or mining cadastre not updated

Pocitos 215 20181 1120,55 Vacant








ALBA SILVIA 18828 1420,00 JORGE ENRIQUE MORENO Y ALBA SILVIA SALAS

Fernando I 12509 200,00 SURNATRON S.A.

AGUAMARGA 2 19084 3528,50 Vacant or mining cadaster, not updated

AGUAMARGA 7 19089 3500,00 Vacant or mining cadastre not updated





MARIBEL 18012 360,00 MARIO ROJO

LAURA 18013 400,00 MARIO ROJO

ROSANA 18014 397,63 LITHEA INC. SUC. ARGENTINA

CATALINA I 15988 800,00 ADY RESOURCES

CATALINA II 15989 800,00 SURNATRON S.A.

CATALINA III 15990 322,40 SURNATRON S.A.

CATALINA V 15992 436,76 SURNATRON S.A.

CATALINA VI 16095 800,00 SURNATRON S.A.

CATALINA VII 16096 800,00 SURNATRON S.A.

CATALINA VII 16097 800,00 SURNATRON S.A.



HORNO HUAICO 12437 401,19 LITHEA INC. SUC. ARGENTINA

HORNO HUAICO I 12438 100,21 SURNATRON S.A.

MARIA AUXILIADORA 9328 763.98 ADY RESOURCES

NICODEMUS 11873 162.39 SURNATRON S.A.

LILA 17697 202,87 MARIO ROJO

CRISTINA 9337 100,00 SURNATRON S.A

PACIFICA 9335 100,00 SURNATRON S.A

VALENCIANA 12036 809,00 SURNATRON S.A

AMALIA II 15912 600,00 SURNATRON S.A

AMALIA III 15913 800,00 SURNATRON S.A

AMALIA IV 15914 800,00 SURNATRON S.A

AMALIA V 16098 800,00 SURNATRON S.A

POCITOS A01 22716 615,55 Pure Energy

Pocitos 210 20176 1500,00 Pure Energy

Pocitos 212 20178 1375,00 Pure Energy

POCITOS 4 19460 529,68 Pure Energy

58


ALCALA I 19389 2454,90 Pure Energy



TABAPOCITOS 03 20019 564,00 Pure Energy

ALCALA III 19392 2254,97 Pure Energy

ALCALA II 19390 2314,00 Pure Energy

Figure 15.1: Property Map for Pocitos Salar

59

24. OTHER RELEVANT DATA AND INFORMATION

In the opinion of the QP responsible for this Technical Report there are no relevant information or data that

need to be added at the time of this report. There is no new property ownership data addressing the

validity and extend of the property.

60

25. INTERPRETATION AND CONCLUSIONS

Based on the results of past work and recent field examinations, the author concludes that the Pocitos West

is a project of merit for initial exploration and, if successful, it can evolve through rapid development for

lithium and potassium brine mineralization.

Past work by DGM, Li3E Inc., and Lacus Minerals confirm continuous areas of weakly-moderately anomalous

lithium-potassium values over large areas of the salar. These groups exploration followed up with

geophysics, the results of which suggest that multiple brine-bearing aquifers may occur to a depth of some

450 meters, with a particularly responsive target between 200 to 450 meters depth. Neither company

followed up with work sufficient to identify or quantify the deeper resource potential. More recent

geophysics studies published by the Company, as well as Pepinnini Minerals and Southern Lithium in

partnership with Millennial Lithium, target various parts of the salar, and all indicate the potential for brine-

bearing sediments at depth.

Reconnaissance Drilling by DGFM targeted only near-surface sediments, and did not extend much below the

immediate sub-surface. Shallow pits excavated by Lacus and Li3E, years later include only surface and sub-

surface sampling.

Research and field examinations revealed stratigraphic evidence suggesting that the Pocitos Salar was, at its

maximum extent, wider than the present day expression of 6-10 km in an east-west direction, and that a

large portion of the area is a paleo-salar extending to the west beneath post-mineral cover.

From examination of the existing data and field interpretations, the author concludes that the Pocitos Salar

has the possibility to host lithium-enriched brine. Furthermore, recent developments in other lithium

resource areas have shown that the more highly enriched brine resources and more transmissive aquifers

are found at greater depths in the salars of the region.

The author considers there are only minor uncertainties that can affect the confidence in the information

used for this assessment. Sampling as reported by DGM did not include a discussion of QA/QC protocols, if

any, and thus the accuracy and reliability is uncertain. However, other regional results as reported by DGM

have been proven reliable by subsequent explorers and developers, with two existing active lithium

producers in the region, and multiple projects reported to NI43-101 standards. Sampling results for surface

samples as reported by Lacus and Li3E was reportedly subject to a QA/QC program, however those

protocols, standards qualification data and program results were not published in a report written to NI43-

101 standards, and thus cannot be relied upon.

The main uncertainties introduces by the aforementioned risks are the accuracy of the sampling data, and

interpretation of geophysics in an areas that has never been drilled. However, given the aforementioned

affirmation of the DGM data, and the background of Li3E with their project at Maricunga Salar in Chile, the

author considers the risks to minimize sufficiently to justify further exploration.

61

26. RECOMMENDATIONS

The Pocitos West project is an initial-stage project for which existing data and its location within a region

productive for lithium suggest a reduced level of risk that can justify further exploration efforts and

expenditures.

The Pocitos West target covering some 150 square kilometers is considered relatively large, however it can

be tested to determine the potential for development of a resource in a rather short time. If initial deep

reconnaissance drilling is successful in identifying lithium-bearing brine of commercial interest, further

exploration work will be undertaken to determine the resources of lithium in brine, the effective recovery of

brine and the economic viability and subsequent mining and refining operations.

The initial exploration at Pocitos West would consist of the following staged proposal (Table 26.1):

Stage 1:

1. Core drilling to identify and test potentially productive brine aquifers, and;

1. Further surface geophysics to target resource in-fill drilling (CSAMT, seismic and VES).

Stage 2:

3. Follow-on rotary drilling and well construction.

4. Pumping trials.

5. Basic process test works (including lab and field evaporation trials).

6. NI43-101 technical report update.

Table 26.1 Recommended Exploration Activities, Schedule and Cost Estimates

Stage Activities Schedule

I Drill Testing - test for lithium content to depth, test brine recovery.

July 2017 to September 2017

II In-fill resource drilling, pumping tests, evaporation testing – lab and field pilot studies, geophysics, weather monitoring.

October 2017 to June 2018

Stage I: testing for lithium brine content: three core/monitoring holes drilled to a depth of 350m and

adjacent pumping test well, if justified (assumed here to be 350m also). Costs include field and

administrative support, environmental reporting and permits. The costs involved in the Stage 1 are spread

in the figures indicated at Table 18.2, adding in total $CN3 Million.

Stage II: At the completion of Phase I activities, if successful, Liberty One will be in a position to evaluate the

Property for its potential to host a resource of lithium brines amenable to current extraction and processing

methods. Contingent on the Company confirming the presence of lithium brines similar to those

encountered in adjacent and nearby basins, the Company would continue its exploration program with a

Phase II (Table 26.2) program advancing the project to include evaporation testing and other field

monitoring. The cost of Stage 2 are estimated at $CN 8 Million.

62

Table 26.2 Recommended Phase I Exploration Cost Estimates

Phase I - Component Cost ($CDN)

Core drilling 1,000,000

Site set up 15,000

Environmental and consulting 25,000

Fuel 67,200

Fuel delivery & storage 5,000

Camp and lodging 7,500

Local accommodation 7,500

Drill crew lodging 20,000

Geologists 50,000

Technicians 20,000

Vehicles 48,000

Assaying and analytical 25,000

Total 1,290,200

63

27. REFERENCES

27.1 References mentioned in the text.

Allmendinger, R.W., Jordan, T.E., Kay, S.M., and Isacks, B.L., 1997, The Evolution of the Altiplano-Puna

Plateau of the Central Andes: Annual Review of Earth and Planetary Science, v. 25, p. 139-174.

Alonso, R. y R. Gutiérrez. 1984. Puna Austral bases para el subprovincialismo geológico de la Puna

Argentina. Actas IX Congreso Geológico Argentino, Actas1: 43-63, Bariloche.

Alonso, R.N., Gutíerrez, R. y Viramonte, J. 1984b. Megacuerpos salinos cenozoicos en La Puna Argentina. IX

Congreso Geológico Argentino, Actas 1: 25-42, Bariloche.

Anon. 2016. Goldman Sachs Global investment Research, April 2016.

Battaglia R.R., Sánchez M.C., Esteban J. y J.A. Salfity, 2001 Las facies evaporíticas en el salar de Pocitos,

Puna de Salta. VII Congreso Argentino de Geología Económica, Actas 2, P. 60-66. Salta

Cabrera, A. L. y Willink, W.; 1980. Biogeografía de América Latina. Segunda edición corregida. Colección de

Monografías Científicas de la Secretaría General de la Organización de los Estados Americanos, Programa

Regional de Desarrollo Científico y Tecnológico, Washington D.C.,

Chernicoff, C.J., Richards, J.P., and Zappettini, E.O., 2002, Crustal lineament control on magmatism and

mineralization in northwestern Argentina: geological, geophysical, and remote sensing evidence: Ore

Geology Reviews, v. 21, p. 127-155.

Coira, B., Davidson, J., Mpodozis, C., and Ramos, V., 1982, Tectonic and Magmatic Evolution of the Andes of

Northern Argentina and Chile: Earth Science Reviews, v. 18, p. 303-332.

Igarzábal, A. P. 1984. Estudio geológico de los recursos mineros en salares del NOA (Puna Argentina).

Proyecto de Investigación. Consejo de Investigación. Universidad Nacional de Salta.

Issar, A.; Passchier, R. 1990. Regional Hydro Geological Concepts, International Contributions to

Hydrogeology. Groundwater Recharge Vol. 8, 1990, 23-94.

Marrett, R. A., Allmendinger, R. W., Alonso, R. N., Drake, R.E., 1994. Late Cenozoic tectonic evolution of the

Puna Plateau and adjacent foreland, northwestern Argentine Andes. Journal of South American Earth

Sciences 7 (2), 179-207 .

Nadir A. y T. Chafatinos. 1990. Los Suelos del NOA (Salta y Jujuy), Universidad Nacional de Salta. Argentina.

Turner, J.C.M., 1972. Puna. Geología Regional Argentina. Academia Nacional de Ciencias de Córdoba. (A.

Leanza, Ed.), p. 91-116. Córdoba.

Vandervoort, D.S., Jordan, T.E., Zeitler, P.K. and Alonso, R.N. 1995. Chronology of internal drainage

development and uplift, southern Puna plateau, Argentine central Andes. Geology, 23: 145-148.

64

27.2 General references not cited in text.

Alonso, R. N., 1999. Los salares de la Puna y sus recursos evaporíticos, Jujuy, Salta y Catamarca. En Recursos

Minerales de la República Argentina (Ed. E. O. Zappettini), Instituto de Geología y Recursos

Minerales. SEGEMAR, Anales 35: 1907-1921, Buenos Aires

Alonso, R.N., Jordan, T.E., Tabbutt, K.T. and Vandevoort, D.S. 1991. Giant evaporate belts of the Neogene

central Andes. Geology, 19: 401-404.

Alonso, R.N., Menegatti, N., 1990. La Formación Blanca Lila (Pleistoceno) y sus depósitos de boratos (Puna

Argentina): II Congreso Geológico Argentino, Actas I, p. 43-63.

Chernicoff, C.J., Richards, J.P., and Zappettini, E.O., 2002, Crustal lineament control on magmatism and

mineralization in northwestern Argentina: geological, geophysical, and remote sensing evidence: Ore

Geology Reviews, v. 21, p. 127-155.

Christian, V., 2008. Informe de monitoreo Arqueológico Bianual, Proyecto Maktub, Salar de Hombre

Muerto, Provincia de Catamarca.

Freymark, J., Strecker, M.; Bookhagen, B; Bekeschus, B.; Eckelmann, F. y Alonso, R. 2013. Quaternary

shortening in the central Puna Plateau of NW Argentina: Preliminary results from the Salar de Pocitos, Salta

province (24.5° S, 67° W). EGU General Assembly 2013, held 7-12 April, 2013 in Vienna, Austria, id.

EGU2013-8228.

Garrett, D. 2004. Handbook of lithium and natural calcium chloride: their deposits, processing, uses and

properties. 1st ed. Elsevier Ltd, Amsterdam, San Diego, Oxford, London.

Houston, J. 2006. Evaporation in the Atacama desert: An empirical study of spatio-temporal variations and

their causes. Journal of Hydrology, 330: 402-412.

Igarzábal, A. P. 1984. Estudio geológico de los recursos mineros en salares del NOA (Puna Argentina).

Proyecto de Investigación. Consejo de Investigación. Universidad Nacional de Salta.

Jordan, T.E., Alonso, R.N. 1987. Cenozoic stratigraphy and basin tectonics of the Andes Mountains, 20-28oS

latitude. American Association of Petroleum Geologists Bulletin, 71:49-64.

Kraemer, B., Adelmann, D., Alten, M., Schnurr, W., Erpenstein, K., Kiefer, E., van den Bogaard, P. and Gorler,

K. 1999. Incorporation of the Palaeogene foreland into the Neogene Puna plateau: The Salar de Antofalla

area, NW Argentina. Journal of South American Earth Sciences, 12: 157-182.

Kunasz, I. 2005. Global lithium dynamics. In Symposium 2005 Window to the World, Volume II. Geological

Society of Nevada. 1251-1257.

Lamb, S., Hoke, L., Kennan, L., and Dewey, J., 1997, Cenozoic evolution of the Central Andes in Bolivia and

northern Chile in Burg, J.P., and Ford, M., eds., Orogeny Through Time: Geological Society, London, Special

Publication 121, p. 237-264.

Lanouette, Patrick. 2017. Transient basin interconnectivity as a result of variable climate conditions on the

Puna Plateau, NW Argentina. MSc Thesis Universität Potsdam.

65

López, S., 2016. Informe de Impacto Ambiental Bianual Mina “La Buscada” Expediente N° 17.589 – Etapa de

Explotación. Dpto. Los Andes, Provincia de Salta.

Lowenstein, T. 2000. 80 ka Paleoclimate Record from Salar de Hombre Muerto,

Argentina, www.geol.binghamton.edu/faculty/lowenstein/hm/hombremuerto.html

Lowenstein, T., Hein, M.C., Bobst, A.L., Jordan, T.E., Godfrey, L.V., Ku, T.L. and Luo, S. 2001. A 106Kyr

paleoclimate record from the Salar de Atacama, Chile: Evidence for wet Late Glacial climates.

Quade, J. and Seltzer, G. (editors) Paleoclimatology of the Central Andes. PEPI USGS Workshop Abstracts,

Tucson, Arizona.

Ovejero-Toledo, A. 2007. Estudio geológico de sondeos en la transecta E-O de las evapofacies halíticas en el

Salar del Rincon (Salta). Tésis Profesional. Universidad Nacional de Salta.

Turner, J.C.M., 1972. Puna. Geología Regional Argentina. Academia Nacional de Ciencias de Córdoba. (A.

Leanza, Ed.), p. 91-116. Córdoba.

Vandervoort, D.S., Jordan, T.E., Zeitler, P.K. and Alonso, R.N. 1995. Chronology of internal drainage

development and uplift, southern Puna plateau, Argentine central Andes. Geology, 23: 145-148.

66

28. ABBREVIATIONS

Abbreviation Meaning

" : Inch

% : Percentage, per cent

°C : Celsius Degrees

ACME : ACME Labs

ASA : Alex Stewart Argentina S.A.

Ausimm : Australasian Institute of Mining and Metallurgy

Ave : Average

CSAMT : Controlled Source Audio Magnetotelluric

Corp : Corporation

DGFM : Dirección General de Fabricaciones (Spanish acronym)

DIZ : Area of Direct Influence (Spanish acronym)

ERAMET : Eramet Sudamerica S.A.

Eramin : Mother House of ERAMET (French)

ha : Hectare

HP : Horse Power

ICP : Inductively Coupled Plasma Analysis

IIMCH : Instituto de Ingenieros de Minas de Chile (Spanish acronym)

km : kilometres

km2 : square kilometres

kmh : Kilometres per hour

kph : kilometres per hour

KV : kilovolt

L : Litre

L/secons : litres per second

LCE : Lithium carbonate equivalent

Lps : litres per second

m : metres

m3/h/m : Cubic meter per hour per meter

67

mA : Million Year, Million Annum

masl : metres above sea level

mg/L : Milligrames per litre

milli-siemens/second : Milli Siemens per second

mm : millimetres

mm/day : Millimetres day

mS/cm : MilliSiemens/centimetre

MT : Magnetotelluric

MW : megawatt

NNE-SSW : Northnortheast-southsouthwest

NW : Northwest

ohm/m : Ohm/metre

PASMA : Assistence Tho the Argentinean Mining Sector ( Spanish acronism)

QA/QC : Quality Assurance/Quality Control

Qbl : Blanca Lila Formation

QP : Qualified Person

Qs : Quaternary and modern sediments

RBRC : Geotechnical testing

RN : National Route

RP : Provincial Route

SMN : Argentinean National Weather Service, Spanish acronism)

Spec. Grav. : Speciphic Gravity

SW : Southwest

TDS : Total Dissolved Solids

TEM : Time Domain Electromagnetics

UNSa : Universidad Nacional de Salta (Spanish acronism)

VES : vertical electrical sounding

WNW : west northwest

68

29. CERTIFICATE OF AUTHOR

I, Nivaldo Rojas, FAusIMM, do hereby certify that:

1) I am an independent Mining Engineer and a partner of Rojas Mining Advisors, since 1998; our main office is

located at Guayaquil 285, Barrio Arizu, Godoy Cruz, Mendoza 5501, Argentina.

2) I have the following academic and professional qualifications and experience:

a. I am a graduate of Universidad de Atacama (Copiapo, Chile) with a B.Sc. in Mining Engineering obtained

in 1982;

b. I have worked in mining and mineral exploration continuously since graduation from university;

c. I am a Fellow in good standing of the Australasian Institute of Mining and Metallurgy – AusIMM (no.

227551);

d. Experience relevant to this Report:

i. Understanding of the geology and mining of mineral deposits present at the Argentinean Puna for over 30

years;

ii. Over 10 years of experience in lithium mineral exploration and project evaluation;

3) I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43- 101) and certify

that by reason of my education, affiliation with a professional association (as defined by NI 43-101) and past

relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101

because I have the appropriate level of membership in one of the Accepted Foreign Associations and

Membership Designations as indicated in Appendix A of NI 43-101;

4) I visited the Pocitos West Project on January 20th to 22th, 2017

5) I am responsible for the technical review and writing of the report entitled “Technical Report on the Pocitos

West Project, Salta Province, Argentina” with an effective date of June 22, 2017.

6) I am independent of the Pocitos West Property and independent of the Liberty One One Lithium Corp, the

Vendors of the vendors of the Pocitos West Property.

7) I state that, as at the date of the certificate, to the best of my qualified knowledge, information and belief,

the Technical Report contains all scientific and technical information that is required to be disclosed to make

the Technical Report not misleading;

8) I have no personal knowledge, as of the date of this certificate, of any material fact or material change which

is not reflected in this Technical Report;

9) I am independent of the Issuer as defined in Section 1.5 of NI 43-101; and

10) I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in

compliance with that instrument and form.

Effective Date: June 22nd, 2017.

Date of Original Signing and Sealed: August 2nd, 2017.

69

(Signed) “N. D. Rojas”

Nivaldo Rojas, FAusIMM

70

22. APPENDIXES

22.1 Appendix on Legal Opinion

technical report on the pocitos west project, salta province, argentina · 2017-08-03 · pocitos...

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