Coldwater Mining & Energy Limited Announce Discovery of High-Grade Lithium at Greater Depths at One of Their Argentinian Sites

Coldwater Mining & Energy Limited Announce Discovery of High-Grade Lithium at Greater Depths at One of Their Argentinian Sites

Coldwater Mining & Energy Limited is pleased to report new drilling results from one of its three wholly-owned lithium brine projects in northern Catamarca, Argentina.

The Company previously filed a reserve estimation on July 7, 2021 which defined proven and probable reserves of no less than 611,000 tons of lithium carbonate with an average grade of 660 milligrams per liter (mg/L) lithium with a cut off at approximately 720 mg/L Lithium.

The company's findings have resulted in a mining plan strategy at the Catamarca project which will now focus on extracting the higher-grade lithium brine first.

The lithium reserve is estimated to contain a high-grade core of approximately 197,000 tons of lithium carbonate able to be extracted in the first 5 to 7 years with an average grade of above 800 mg/L Lithium. This high-grade core is critical given it enables the Company to build less ponds at the beginning of the project, therefore lowering initial capital expenditures, while achieving the target production of nearly 1,000 tons of lithium carbonate.

This high-grade core was achieved by drilling down to 90 metres depth and was used to form the estimate of the resources and reserves found within it.

Mr. Kevin R. Lomas, Managing Director & Chief Executive Officer of Coldwater Mining and Energy said, "These results have enabled us to confirm the increased resources available to us at this location. These positive findings also have a significant potential to increase as we develop the site further."

Lomas added, "This particular Catamarca project is now our highest-grade lithium project in Argentina and will continue to grow as our pilot drilling has confirmed the importance of the northern section that is the high-grade lithium zone."

Technical Information

The brine samples collected in the field were delivered by Company personnel to ASL, an ISO 9001-2008-certified laboratory in Mendoza, Argentina. ASL used the following analytical methodologies: ICP-OES (inductively-coupled plasma-optical (atomic) emission spectrometry) to quantify boron, barium, calcium, lithium, magnesium, manganese, and potassium; an argentometric method to assay for chloride; a gravimetric method to analyze for sulfate; a volumetric analysis (acid/base titration) for the evaluation of alkalinity (as CaCO3); a gravimetric method to determine density and total dissolved solids; and, a laboratory pH meter to determine pH.