Millennial Reports Positive Pumping Test Results from Third Production Scale Well at Pastos Grandes Project, Argentina; Investor Relations and Communications / Branding Agreements
Vancouver, British Columbia--(Newsfile Corp. - March 20, 2019) - Millennial Lithium Corp. (TSXV: ML) ("Millennial" or the "Company") is pleased to report encouraging results from a short-term pumping test of a third production-scale well at its Pastos Grandes Project in Salta, Argentina. Pumping well PGPW18-17 was installed as a future production well, and meanwhile to undertake short-term pumping of lithium brine to determine aquifer parameters and chemical variation during a 72-hour period in March, 2019. At a pumping rate of 19.4 litres/second (L/s), the drawdown was approximately 30 metres (m), with rapid water level recovery. Estimated transmissivity was calculated from the water level recovery data to be about 100 square metres per day (m2/day). The pumping test was completed under the direction and supervision of Montgomery & Associates.
Millennial's President and CEO, Farhad Abasov, commented: "Millennial is very pleased with the results of our third pumping test in the central portion of the Company's land position at Pastos Grandes. The pumping rate was 19.4 L/s over a 72 hour time frame from March 5 to 7th with a maximum drawdown of approximately 30m with full recovery to initial level after 3 days of recovery. The transmissivity, calculated at about 100 m²/day, is encouraging and indicates the aquifer has good potential to sustain long term pumping. With a strong cash position Millennial is on track to produce an updated 43-101 resource report early in Q2 and complete the Bankable Feasibility Study later in the quarter."
Well PGPW18-17 was drilled using mud rotary methods to a total depth of 608 m using 17.5" and 14.75" diameter drill bits. The well was completed with 12" and 8" diameter steel pipe with 12" blank pipe for the section from 0m to 50.4m, 12" slotted pipe for the section from 50.4m to 199.8m, 8" slotted casing from 199.8m to 594.4m and 8" blank casing from 594.4m to 601.4m with an end cap. The annular space between the borehole and the casing was filled with gravel pack.
Following a step-test to determine the optimal pumping rate a 72-hour constant flow pumping test was completed with a flow rate of 19.4 L/sec, the maximum rate for the equipment used for the test. Water level drawdown and recovery were measured for successive 72 hour periods (See Table 1). Maximum drawdown was approximately 30 m; the recovery to initial water level was observed in the 72 hours after pumping stopped.
Table 1. Summary of Pumping Test at Well PGPW18-17
|Well ID||Total Well Depth (m)||Pumping Duration (hours)||Initial Water Level (metres below measuring point)||Maximum Drawdown(m)||Pumping Rate (L/s)|
The drawdown and recovery data provide the basis for the calculation of the aquifer transmissivity, a measurement of the rate brine moves through the aquifer. The best estimate of the transmissivity is about 100 (m²/d) and is considered to be very good for fine-grained aquifers. Based on this transmissivity calculation, the aquifer has good potential to sustain a long-term pumping rate of greater than the 19.4 L/s maximum test rate.
Brine sampling during the pumping test was completed every 12 hours to determine the variation in brine chemical composition over the period the aquifer was tested. Laboratory chemical analyses for the brine samples are pending.
Millennial continues to evaluate and define the characteristics of the lithium-bearing aquifer in the southern portion of its land package with pumping well PGPW18-15 nearing completion with short term pumping tests and brine sampling to follow.
Sampling was conducted in accordance with CIM guidelines for brine resource evaluation, with an appropriate chain of custody and QA/QC program in place for ensuring veracity, accuracy and precision of the analytical results.
The primary analytical laboratory to be used for the data in this program is the newly commissioned SGS Laboratory in Salta, Argentina. SGS is accredited to ISO 9001:2008 and ISO14001:2004 for their geochemical and environmental labs for the preparation and analysis of numerous sample types, including brines.
Investor Relations and Communications / Branding Agreements
The Company wishes to announce the terms and conditions under which three groups provide investor relations, communications, branding and / or similar services to the Company:
The Company has engaged NetworkNewsWire ("NNW") to provide corporate communications expertise, subject to the approval of the TSX Venture Exchange. NNW is an experienced financial news and publishing company that provides services to companies in the United States and Canada pursuant to contracts between NNW and the companies. NNW will provide corporate communications, company news release dissemination, enhancement and social media solutions and related advice on a month-to-month basis for $25,000 USD per month. The Company will pay NNW directly from the Company's current working capital. Millennial Lithium and NNW are at arm's length and, to the Company's knowledge, neither NNW nor any of its affiliates have an interest in securities of the Company. NNW has received no shares or warrants from Millennial Lithium or any third party for the services that NNW provides to the Company. NNW is a private company based in the United States, and Michael McCarthy is NNW's Managing Director.
SRC Swiss Resource Capital AG
The Company has entered into an agreement (the "SRC Agreement") effective until November 1, 2019 (after which time it is renewable on a quarterly basis) with SRC Swiss Resource Capital AG ("SRC") for investor relations communications services in Europe in German speaking countries. The Company will, subject to the SRC Agreement's approval by the TSX Venture Exchange, work with SRC to deliver services which include disseminating Company information to existing and potential shareholders in the form of the Company's news releases, creating interviews and videos through social media and online means as well as representing the Company at trade and investment shows. The fee under the SRC Agreement is Swiss Francs 6,000 per month with additional fees for special services such as trade and investment shows (such as approximately Swiss Franc 3,500 plus expenses per trade and investment show). The services, in particular in relation to trade and investment shows, are to be provided in various places. SRC is a private company and is based in CH-9100 Herisau, Poststrasse 1 in Switzerland. SRC is led by Joachem Staiger, CEO. SRC has extensive experience in providing services to companies listed on various stock exchanges that are seeking to raise their profile in public markets. SRC owns 15,000 ML shares and has no intention to sell them but holds them for investment purposes.
Proactive Investors Limited
The Company has entered into an agreement (the "Proactive Agreement") with Proactive Investors Limited ("Proactive") dated effective September 1, 2018, to provide services including: (i) ongoing editorial coverage of Company news releases, analyst commentary and interview based articles; (ii) building and maintaining a profile page on Proactive websites; and (iii) conducting executive interviews in audio and video format to be featured on Proactive websites. The Proactive Agreement is for a period ending on November 30, 2019. Proactive has received a fee of $15,000. Funds for payment of Proactive came from existing working capital. Proactive is a multimedia organization which operates a number of financial websites in multiple languages and has offices in London, New York, Toronto, Vancouver and Sydney. Proactive is a private company with employees experienced in delivering various communications and other services and Proactive's Vancouver office will, subject to the TSX Venture Exchange's approval of the Proactive Agreement, work with the Company to deliver services under the direction of Sam Kiri, Director of Proactive.
The technical disclosure in this news release has been reviewed by Iain Scarr, AIPG CPG., Chief Operating Officer of the Company and a Qualified Person as that term is defined in National Instrument 43-101.
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email firstname.lastname@example.org.
MILLENNIAL LITHIUM CORP.
President and CEO, Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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