Zacatecas & San Luis Potosí Area Projects

Land Holdings: 22,186 hectares
Ownership: 100% OrganiMax Nutrient Corp.
Projects: 15 salars within 5 groups of mineral concessions

OrganiMax Nutrient Corp is currently progressing towards a sediment mineral resource estimate at its 100% owned and high-grade potassium and lithium bearing salars located on the central Mexican Plateau. The projects are situated in a mining friendly jurisdiction with good infrastructure and access. Recent and historical exploration has indicated salar sediments to extensive depths and potentially highly prospective brine aquifers. These characteristics will be further assessed with geophysical program that is set to begin in parallel with the ongoing mineral resource estimate.

Santa Clara Salar

Approximate Size: 1660 Hectares
Ownership: 100% OrganiMax Nutrient Corp.

Santa Clara is the largest of OrganiMax’s Zacatecas-area salars and host to the highest-average grade potassium sediments. This salar has seen a significant amount of historical work from Geological Survey of Mexico as well as private operators. Some 380 five-metre-deep pits were dug on a 200-metre grid across the entire salar. These pits were sampled every vertical metre and approximately 1900 samples were collected. 848 of these samples were assayed using analytical techniques comparable to those utilized in analyzing the 2017 exploration samples. These samples returned potassium values ranging from 1.25 to 6.61%, with an average value of 4.49%, and lithium values ranging from 17 to 723 ppm with an average grade of 258 ppm.  Further to this, OrganiMax (as Alset Energy) assayed a composite sample made up of 10 separate samples from this salar material, this composite sample returned a grade of 4.1% potassium, 464 ppm lithium and a range of other chemicals important for farming.  In addition to the encouraging chemical compositions from the lab work, leach testing of this composite sample indicate a potassium recovery of 48% and lithium recovery of 79% from the sediments.

In 2017, field personnel collected 59 surface sediment samples using a hand-held auger on an off-set 500-metre grid. Material collected during this program returned an average of 3.55% potassium and 392 ppm lithium.

The size, geology and high potassium content of Santa Clara make this deposit a primary target for K- and Li-rich brines at depth. Depth of the basin remains unknown; however, the Geological Survey of Mexico estimates the lacustrine sediments reach up to 300 metre depth in the southwestern lobe of the salar (see schematic cross section below).

OrganiMax is currently planning a field geophysical program to identify highly conductive layers indicative of potential brine horizons and to better estimate the shape and depth of the basin. Geophysics will be followed by a drilling program to confirm depth to basement, to profile the lithology, and to test conductive layers for brine.

La Salada Salar

Approximate Size: 300 Hectares
Ownership: 100% OrganiMax Nutrient Corp.

Of the fifteen Zacatecas-area salars, La Salada appears to have the highest average sediment-hosted lithium grade and is the first salar with confirmed high-potassium brines. Historical sediment sampling indicates potassium values ranging from 0.11% to 9.06% with an average value of 3.26%; and lithium values ranging from 25 to 2265 ppm with an average value of 865 ppm. As with Santa Clara, these historical values were obtained from pit sampling the salar on a 100-metre grid; the pits were sampled every vertical metre down to five metres to collect 711 samples.

In 2016, OrganiMax (as Alset Energy) assayed a composite sample made up of 10 separate samples from this salar material. This composite sample returned a grade of 2.47% potassium and 1460 ppm lithium. The Company also carried out several leaching tests on the composite sample, the results of which indicate a potassium recovery of 82% and a lithium recovery of 86% from the sediment samples.

Drilling at La Salada in 2017 included one triple-tube diamond drill hole which ended at 53.15 metres in limestone, and 40 drill-mounted auger holes on a 150 by 200-metre grid across the salar. Because of poor core recovery and slow progress, the second diamond drill hole was postponed. Auger holes ranged from 4.5 to 25.5m deep, with an average depth of 14.5m. All of the auger holes encountered sub-surface brines at approximately 1.2 to 9 metres depth. Perforated PVC casing was installed in each auger hole to allow brine to flow into the hole and facilitate sampling.  Encouragingly, analysis of the brine samples demonstrates high-potassium and sulphate, with relatively low contaminants such as magnesium and calcium in comparison to analogous potassium brine resources.

During the auger program, composite sediment samples were taken along 1.5 metre intervals. 5 holes along a north-south transect of La Salada were analysed in 2017; weighted averages from these samples are slightly elevated in comparison to the historical pit samples with 3.58% potassium and 975 ppm lithium. The remaining sediment samples collected during the auger program are currently undergoing analysis.

SRK Consulting was engaged in 2018 to perform a mineral resource estimate with a primary focus on the La Salada sediment-hosted potassium and lithium. Additional mineralogy and beneficiation testwork required for the report is ongoing and it is anticipated that the mineral resource estimate will be completed this year.

Caliguey Salar

Approximate Size: 300 Hectares
Ownership: 100% OrganiMax Nutrient Corp.

Historically Caliguey was one of several salars in the region that produced sodium chloride from brines using evaporation ponds. Interestingly, the Mineral Resource Council of Mexico report brines containing up to 21,000 mg/L of Lithium collected from evaporation ponds at Caliguey as part of a sampling program in 1992. The three other brine samples collected during the program returned 12,000, 14,000 and 14,000 mg/L of lithium respectively.

Following the publication of the Mineral Resource Council report, Caliguey and surrounding salars, now predominantly held by OrganiMax, were identified as potential targets for brine-hosted lithium exploration. Previous operators did extensive exploration work on the salar including a resistivity survey in 2010. Results indicated a depth to basement of around 30 metres; however, five reverse circulation holes drilled at Caliguey in 2011 failed to intersect basement.  Depths for these holes ranged from 34 to 60 metres.

In 2010, a grid pit sampling program akin those at Santa Clara and La Salada was carried out with some 1512 samples collected from over 300 pits. Assay results from this program returned potassium values from 0.22% to 11% with an average of 3.86%; lithium values ranged from 33 ppm to 2590 ppm with an average of 377 ppm.

Further to this, in 2016 OrganiMax (as Alset Energy) assayed a composite sample made up of 10 separate samples from this salar material; this composite sample returned a grade of 3.84% potassium and 1040 ppm lithium. The Company also carried out several leaching tests on this composite sample. The results of these leach tests from La Salada indicated a potassium recovery of 40% and a lithium recovery of 97% from the sediment samples.

36 shallow surface sediment samples were collected in 2017 using a hand-held auger.  Potassium results are similar to historical data with an average of 3.38% potassium; lithium results are much higher with an average of 769ppm.

Based on historical reports and recent sampling, OrganiMax considers Caliguey to be a high-priority target for lithium and potassium enriched brines. It is anticipated that exploration work at this salar, including geophysics and drilling, will follow the completion of geophysical work and drilling at Santa Clara.

Additional Salars

Chapala ~ 600 Hectares (~450 ha within OrganiMax claims)
El Salitral ~ 400 Hectares
Hernandez ~ 350 Hectares
El Agrito ~ 275 Hectares
Las Casas ~ 250 Hectares (~100 ha within OrganiMax claims)
El Barril ~ 190 Hectares
Saldivar ~ 150 Hectares
Laguna Larga ~ 100 Hectares
Colorada ~ 100 Hectares
La Doncella ~ 30 Hectares
La Prietta ~ 20 Hectares
El Cristalillo ~ 10 Hectares

Ownership: 100% OrganiMax Nutrient Corp.

Past Producers
In addition to Caliguey, Saldivar and Colorado have also seen historical production of sodium chloride for table salt and for use in the local silver mines. Evaporation ponds are still in place from past production of these salars.

Work by Previous Operators
Following a national lithium exploration program undertaken by the Mexican Geological Survey in the 1980’s, private operators conducted a regional-scale sampling program of the salars located on the central Mexican Plateau. Through this sampling program, numerous potassium-lithium-boron targets were identified, including Santa Calara, La Salada and Caliguey, as well as the “other” salars currently held by OrganiMax. These salars have seen a variable amount of exploration work and continue to be regarded as potential targets for potassium and lithium brines and sediments and because of their proximity to Santa Clara and Caliguey are viewed as up-scale potential to compliment the larger salars.

Geophysics
Vertical electrical sounding (VES) surveys were conducted over the Santa Clara, La Salada, Caliguey, Colorada, Doncella and Saldivar salars in 2010 and 2011. These reports indicated basin depths ranging from 15 up to 65 metres at various salars. However, RC drilling at Caliguey in 2011 where the VES results indicated a depth to basement of approximately 30 metres failed to intersect basement in each of the 5 holes which ranged from 34 to 60 metres deep. Furthermore, OrganiMax independently reviewed the data in 2017 and found the data to be erroneous. Because of these findings, OrganiMax intends to initiate a new geophysical program to highlight potential brine horizons and to better define basin depths.

Surface Sampling
Concurrent with the geophysical and pit sampling program, a number of surface or sub-surface samples were collected from Chapala, El Salitral, Hernandez, El Agrito, Las Casas and El Barril. Results of the sampling program indicated all salars host anomalous sediment-hosted potassium and lithium with values up to 1.67% potassium at El Salitral and up to 687 ppm lithium at Chapala.

Pit Sampling
Pit sampling similar to that at Santa Clara, La Salada and Caliguey was also completed at Colorada, Saldivar and Doncella. Results of the sampling program demonstrated anomalous sediment-hosted potassium and lithium continuing to 5 metres depth. Results of the pit sampling are as follows:

Salar Potassium (avg %) Lithium (avg ppm)
Colorada 2.54 170
Saldivar 2.52 122
Doncella 2.05 107

Work by OrganiMax (as Alset)
A brief reconnaissance-scale sampling program was undertaken by field personnel in the summer of 2017. This program included hand-held auger sampling of many of OrganiMax’s less developed salars, details of the program are outlined in the October 2, 2017 new release.

Maps, Data & Reports

Mineral Concessions (1)

1992 Mexico Government Report showing high Lithium brine samples collected from Caliguey

Santa Clara, La Salada, Caliguey sediment geochemistry data on historical samples analyzed at Activation Labs in 2016

XRD mineralogy report of the samples in the 2016 Sediment Geochemistry report

Leach testing results of composite samples generated from the samples reported in the other 2016 reports

Summary of the 2017 drill hole locations at La Salada

SGS results for brine geochemistry from La Salada samples collected and analyzed in 2017

SGS results for sediment geochemistry from La Salada samples collected and analyzed in 2017

ALS Global results for sediment geochemistry from sediment samples collected and analyzed in 2017 from salars other than La Salada in the Zacatecas & SLP area