Alpha Lithium Advances Exploration Drilling Program at Tolillar Lithium Project, Argentina - Seite 2

The Company envisions three phases of drilling and all targets have been chosen based on geophysical identification of significant and highly conductive zones of interest:

1. Phase 1 Drilling – Two holes drilled to shallow targets: Drilling licenses are currently in hand and operations such as road and platform construction are already underway. The first phase of geophysics indicated brine presence at shallower depths (see press release dated July 16, 2020). Two initial holes are projected to be drilled up to 100 meters in 90 days or less. Small, agile and locally available rotary drilling equipment will be utilized to complete this first phase. The Company expects to produce from, and collect valuable information on, the upper lithology identified during the first geophysical campaign to better understand the salar’s hydrogeological system.
2. Phase 2 Drilling – Up to four holes drilled to medium-depth targets: Regional COVID shutdowns postponed the Company’s ability to submit simple permit renewal applications to maintain the current licenses on these locations. With a return to normalized regional operations, the Company has successfully submitted the required applications to reinstate the drilling permits for holes ranging from 250 – 400 meters. The initial geophysics results also indicated potential deeper targets. The second phase of drilling is predicted to take up to 120 days to complete. A more capable, heavier, rotary drilling rig will be secured to drill these deeper wells. The data collected from this second round of drilling are expected to complement the shallower drilling results and sharpen the parameters of sub-surface model for the salar. Alpha envisages having the drilling licenses approved prior to completion of the shallow holes with the objective of maintaining continuous drilling operations.
3. Phase 3 Drilling – Additional holes based on latest geophysics results and surface samples: While the final geophysical results still pending (see press release October 6, 2020), the Company anticipates the final report to identify additional targets. This expanded target area coincides with the highest sampled lithium concentrations (504 mg/L) in the salar with a correspondingly low magnesium-to-lithium ratio (3.76:1). Accordingly, Alpha’s management team has its highest expectations for this area.