December 16, 2019
Vancouver, British Columbia: OrganiMax Nutrient Corp. (TSX-V: KMAX) (“OrganiMax” or “the Company”) is pleased to announce its maiden independent Mineral Resource estimates for its 3 principal potassium-lithium salar deposits located within its claims in Zacatecas and San Luis Potosi States, Mexico. SRK Consulting (UK) Limited (SRK) has produced the Mineral Resource estimates for the La Salada, Santa Clara and Caliguey salar sediment deposits.
- 120 million tonnes (Mt) of Inferred Mineral Resources grading 4.6% potassium (K) and 380 ppm lithium (Li);
- a continuous high-lithium portion of La Salada salar containing 7 Mt grading 1,490 ppm
- a contained 12.3 million tonnes (Mt) of Sulfate of Potash (SOP) and 243,000 tonnes of lithium carbonate equivalent (LCE);
- Sampling is restricted to 5 metre depths in most areas therefore there is good exploration potential to increase the Mineral Resource at depth and also extending the sampling to the edge of the salar basins where sampling has not taken place;
- Geophysical surveys completed suggest there is potential for additional similar layers of potassium or lithium enriched material to be found under the current pitting/drilling.
There is significant upside potential to expand the Mineral Resource at depth; Santa Clara and Caliguey have been sampled, and therefore modelled, to only 5 metres depth, with La Salada to approximately 25 metres. The deeper material at La Salada (up to 51 metres to date) is generally potassium rich but is not included in the resource estimate. The basement has not been defined at any of the salars and the surface extent of the salar basins have not been completely sampled.
The detailed Mineral Resource statement for the three OrganiMax salars estimated by SRK is given in the table below:
- Mr. Martin Pittuck, CEng, MIMMM, FGS, is responsible for this Mineral Resource statement and is an “independent qualified person” as such term is defined in NI 43-101.
- Mineral Resource is reported above breakeven value of USD 37/t; calculated using potassium and lithium grades, recoveries, operating costs and selling prices on a block-by-block basis.
- Mineral Resource is considered to have reasonable prospects for eventual economic extraction by open pit surface mining.
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
- The statement uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101.
- Effective date of 17 December 2018.
- MRE is reported on 100% basis.
- Tonnes are reported in metric units.