- Maricunga Project
- Maricunga (DFS)
Vancouver, British Columbia - Bearing Resources Ltd. ("Bearing" or the "Company") (TSX Venture: BRZ) (OTCQB: BRGRF) (FRANKFURT: B6K1) is providing a review of the Phase 1 exploration activities and planned future programs at the Maricunga lithium brine project located in Chile (the “Maricunga Project”), in addition to an update on the acquisition of Li3 Energy Inc (“Li3”). Bearing has entered into a definitive agreement to acquire Li3 and its interest in the Maricunga Project (the “Li3 Definitive Agreement”). Li3 currently holds a 17.7% interest in the Maricunga Project along with Minera Salar Blanco (“MSB”) and Lithium Power International Limited (“Lithium Power”) at 32.3% and 50% respectively pursuant to a joint venture arrangement (the “Joint Venture”). Under the terms of the Joint Venture, Lithium Power has agreed to fund exploration and development costs with both Li3 and MSB having a free carry until the completion of a definitive feasibility study.
Maricunga Project - Phase 1 Exploration Activities Review
Overall the initial exploration phase delivered results that exceeded management expectations, with high-grade lithium brine encountered in drilling of all tenements (“old code” and Litio tenements) and to depths significantly deeper than intersected in previous drilling. It is important to note that all holes from the current exploration program terminated in lithium-bearing brine contained within a favorable lithological sequence.
Drilling on “old code” tenements delivered notable intercepts including average grades of 1,368 mg/L lithium and 9,468 mg/L potassium over 186 metres, with peak results as high as 3,375 mg/L lithium over 6 metres, from hole S6 drilled in the San Francisco tenement.
Results from deep drilling were also highly encouraging, as hole S18 drilled down to 360 metres on the “old code” Cocina tenement delivered average grades of 975 mg/L lithium and 7,273 mg/L potassium over 336 metres, with peak results as high has 1,614 mg/L lithium over 6 metres. Importantly, this deep hole highlights the potential for significant resource expansion as it was drilled to 360 metres compared to the majority of holes from the current program which were drilled to 200 metres, and terminated in lithium bearing grading an average of 877 mg/L over 6 metres.
Going forward, the Joint-Venture anticipates preparing an updated resource estimate in accordance with JORC in April / May with Bearing commissioning a concurrent updated resource estimate prepared in accordance with NI 43-101 within a similar timeline. Bearing has contracted Don Hains, P.Geo of Hains Engineering Company Limited to deliver both a redressed NI 43-101 in March and an updated resource estimate in Q2/17, the latter of which will incorporate the results from the Phase 1 exploration program. The second phase of exploration and development is anticipated to commence in Q2/17 and will include follow-up exploration and resource definition drilling, additional production tests, the construction of a pilot plant, the submission of an Economic Impact Assessment (EIA) report and the tabling of a Pre-Feasibility study (PFS), all anticipated by year-end 2017. Finally, the third phase will culminate in the delivery of a Definitive Feasibility study (DFS), anticipated by year-end 2018. Assuming completion of the transactions contemplated by the Li3 Definitive Agreement, Bearing will be fully-carried for all project expenditures through to the delivery of the DFS by the majority partner, Lithium Power, under the terms of the Joint Venture.
Results were previously released by Bearing wherein QA/QC details were provided. Robert Cameron, P.Geo., who is a technical consultant to the Company and is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
Li3 Energy Transaction Update
Pursuant to its news release dated January 31, 2017, Bearing and Li3 have entered into the Li3 Definitive Agreement. Bearing’s management now wishes
to provide an update on the status of the transaction. Given the added complexities of a cross-border merger, Bearing is currently completing the
Form F-4 filing with the US Securities and Exchange Commission (SEC) which is required for the registration of certain securities by foreign issuers.
The documentation is anticipated to be completed within a month and subsequently filed with the SEC. Upon filing and receipt by the SEC, the SEC
has 30 days to provide comments on the Form F-4 which facilitates a mutual exchange between the SEC and the Company. Once the Form F-4 has been
finalized, it will be distributed to Li3 shareholders with the transaction closing subsequent to shareholder approval. Management currently anticipates
the transaction to close during the second quarter of 2017 (Q2/17).
ON BEHALF OF THE BOARD
Signed "Jeremy Poirier"
Jeremy Poirier, Director President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier | Director President & CEO
Phone: + 1 604 262 8835
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.
About Bearing Resources Ltd.
Bearing is an exploration and development company. The Li3 Definitive Agreement will enable it to acquire an interest in the advanced-stage Maricunga project located in Chile, which represents one of the highest-grade development opportunities in the Americas. Assuming completion of the transactions contemplated by the Agreement, Bearing will have an undivided 17.7% interest in the project with all expenditures through to the delivery of a Definitive Feasibility Study (DFS) fully-funded by its joint-venture partners. The Maricunga Project has had in excess of US$25 million of exploration to date.