INFERRED RESOURCE ESTIMATE - 2,049,000 TONNES LCE Canadian International Minerals Inc. Announces Inferred Resource Estimate of 2,049,000 Tonnes of Lithium Carbonate Equivalent on Leduc Lithium Brine Project
January 25, 2016, Vancouver, British Columbia – Canadian International Minerals Inc. (TSX-V: CIN) is pleased to announce that it has filed a technical report detailing an Inferred Resource estimate for the Company’s Leduc Lithium Brine Project, in accordance with National Instrument 43-101 (“NI 43-101”). The independent technical report, titled “Sturgeon Lake Li-K-B-Br-Ca-Mg-Na Oilfield Brine Inferred Mineral Resource, Leduc Property, West-Central Alberta”, dated January 22, 2016, was prepared for the Company by Roy Eccles, M.Sc., P. Geol., and Michael Dufresne, M.Sc., P. Geol., of APEX Geoscience Ltd. based in Edmonton, Alberta. Both Mr. Eccles and Mr. Dufresne are “qualified persons” within the meaning of NI 43-101 and are independent of the Company. The Technical Report is available under the Company’s profile on SEDAR at www.sedar.com and is available on the Company’s website at www.cin-v.com
The Technical Report outlines an Inferred Resource estimate on the Leduc Lithium Project of 385,000 tonnes of elemental lithium (Li), or 2,049,000 metric tonnes of lithium carbonate equivalent (Li2CO3).
To define a mineral resource estimate for Li, K, B, Br, Ca, Mg, and Na in the Leduc Formation aquifer system of CIN’s Leduc Property, APEX used the total in-place formation water volume of 5.7 billion cubic metres (m3), average mineral grades that were derived from 2011 formation water sampling, and conservatively assume a grade weight (density) of 1000 kg/m3 of brine. The mineral resource estimate has been classified as ‘inferred’ according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards and is based on geological confidence, data quality and grade continuity.
The Sturgeon Lake Li-K-B-Br-Ca-Mg-Na Oilfield Brine Inferred Mineral Resource estimate can be summarized, in elemental and oxide form, as follows:
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At an average grade of 67.5 mg/L and assuming 5.7 billion m3 of water the inferred resource estimate for lithium is 385,000 tonnes (2,049,000 tonnes of Li2CO3);
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At an average grade of 4,641.3 mg/L and assuming 5.7 billion m3 of water the inferred resource estimate for potassium is 26,455,000 tonnes (31,868,000 tonnes of K2O);
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At an average grade of 114.0 mg/L and assuming 5.7 billion m3 of water the inferred resource estimate for boron is 650,000 tonnes (2,093,000 tonnes of B2O3);
Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no guarantee that Li and associated elements (K, B) described above will be economically extractable from the formation waters with current technology. In addition, the quality and grade of the reported inferred resource in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category.
The lithium-bearing Leduc Formation brine is situated within the Sturgeon Lake oilfield, which represents a mature petroleum field. That is, In the early history of this oilfield, most wells started out with high oil to water extraction ratios. However, at present most of the wells produce excessive amounts of formation water in comparison to petroleum. The formation water is treated as a waste product during the petroleum extraction process, after which the brine is injected back down into the subsurface. The level of extractability of the Li and other elements from the ‘waste’ formation water is unclear and will require new technologies (some of which is being introduced and tested in Nevada brines) that may or may not extract all or a portion of these elements.
APEX commissioned Hydrogeological Consultants Ltd. of Edmonton, Alberta to conduct a hydrogeological study to assess the total brine in place and other associated hydrogeological aspects of the Leduc Formation aquifer underlying the Leduc Property area (e.g., available drawdown). Mr. Eccles oversaw data contribution to, and calculations during, the aquifer characterization study and has deemed that subsequent report and information, to the best of his knowledge, are valid contributions to this Technical Report and therefore takes ownership of the ideas and values as they pertain to the current Technical Report.
The formation water sampling and chemical analysis, which was overseen by APEX, was conducted by Maxxam Environmental (“Maxxam”) of Edmonton, Alberta. Maxxam is an accredited laboratory with the Standards Council of Canada (Laboratory No. 160; valid to 2019-03-06) and with the Canadian Association for Laboratory Accreditation (Membership No. 2996; valid to 2017-06-08), where Maxxam’s standard conforms to requirements of ISO.IEC 17025.
Mr. Eccles is a Professional Geologist with the Association of Professional Engineers and Geoscientists of Alberta (APEGA), and has worked as a geologist for more than 25 years since his graduation from University. He has been involved in all aspects of mineral exploration and mineral resource estimations for metallic and industrial mineral projects and deposits in North America. He has conducted compilations and advanced geological studies on the Swan Hills formation waters with the Alberta Geological Survey to better document northwestern Alberta formation water and to determine the origin of the unique lithium-enriched formation water in this area (e.g., Eccles and Jean, 2010; Eccles and Berhane, 2011).
Mr. Dufresne is a Professional Geologist with the Association of Professional Engineers and Geoscientists of Alberta (APEGA), and has worked as a geologist for more than 25 years since his graduation from University. He has conducted fieldwork on the Property and surrounding areas as well as supervised a number of exploration programs for a variety of commodities across the Swan Hills region.
The Report is a compilation of publicly available information. The source of information and data used in this Technical Report are based on formation water well sampling data that was completed in 2011 and on compiled publicly available geological and geochemical data for CIN’s Leduc Property. The data compilation, original oil field formation water sampling, sample chain of custody, analytical direction and management, data validation and interpretation werex supervised and conducted by APEX, under the direct supervision of Mr. Eccles and Mr. Dufresne.
Qualified Person
The technical data in this news release has been reviewed by Thomas Hasek, P. Eng., a Qualified Person as defined by National Instrument 43-101. The Qualified Person has prepared and supervised the preparation or approved the scientific and technical disclosure in the news release.
For further information, please contact:
Canadian International Minerals Inc.
Michael E. Schuss
President and CEO
Phone: 604-241-2254
Website: www.cin-v.com
Forward-looking Information
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements; the uncertainty of future profitability; and the uncertainty of access to additional capital. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
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