I wanted to take this opportunity to update all our shareholders and put into perspective the recent announcement from your company.
First, I think it’s important to review our accomplishments over the last 12 months. Since August of last year, we have been able to amass one of Chile’s largest land packages of prospective lithium properties. To date we currently own 100% of 159,700 hectares of highly prospective lithium properties spread over 16 individual salars. Most importantly our acquisition costs are just over $3.00US per hectare. This is a significant discount to recent land sales in Chile where perspective lithium properties have sold for over $800 US per hectare.
Secondly, we conducted sample programs over all 16 properties and from that program we prioritized 6 prospects so we could focus our resources on what we feel are our most prospective properties. These prospects in order of attractiveness were Coipasa, Helados, Atacama, Turi, Ollague and Talar
Thirdly, we completed successful geophysical programs on 5 of our priority prospects. Consisting of, a gravity program which defines the parameters of the basins followed by a Transient Electro Magnetic program (TEM) which is excellent in showing conductive horizons within these basins. These programs were run on Coipasa, Helados, Atacama, Turi and Ollague and we were extremely pleased that the TEM showed highly conductive targets on all of our 5 properties.
Finally based on the geophysical information gather an exploration drilling program was designed and submitted to the Ministry of Mines and approved for 4 of our prospects, Coipasa, Helados, Atacama and Ollague subject to surface access permission from the respective communities involved.
That brings us to our current work program. We initiated discussions in early summer with all 4 communities involved with our drilling programs. We were pleased when the Ollague community council gave us permission to drill on our Ollague prospect. Even though Ollague was only number 4 or 5 on our priority list we were anxious to get our drilling underway and actually compare our physical results with our TEM geophysical data. We were extremely pleased and indeed excited when on our first reconnaissance hole we encountered a lithium bearing brine aquifer exactly where the TEM indicated we would. We were also please that the lithium grades got steadily better average over 470 mg/l the last 60 meters of the hole. As we drilled this hole on the edge of the basin we hit basement rock at around 300 metes. We then decided to move to the center of the basin for hole 3 and 4 where our geophysical data showed the basin was much deeper. The good news was we hit lithium bearing brine is hole 3 and 4 and like hole 1 the grades steadily improved from below 100 mg/l to over 270 mg/l before drilling finished at the contracted depth of 250 meters. As this part of the basin was much deeper then at hole 1 we really didn’t get a chance to test the deep sector even though we were still in the lithium bearing formation when drilling was suspended. It was this information that made our decision to drill hole 5 and test the much deeper portions of the formation. Hole 5 was completed to a depth of 350 meters and we were actually able to take samples from an additional 100 meters depth below where we had sampled hole 3 and 4. Drilling was suspended do to drilling complications at 350 meters but all 11 samples from hole 5 have been sent to ALS labs and results are pending.
That brings us to what we see happening with your company over the coming months. First and foremost, we look forward to getting the results from hole 5. WE are hoping that just as the top of hole 3 and 4 mirrored the results from the upper section of hole 1 that the deeper samples from hole 5 will show that lithium grade increases with depth. As a contingency and dependent on those results we have received permission from the Ollague community to re-enter hole 4 and extend the hole to 500 meters. The company’s decision to actually pursue that will obviously be based on results from the deeper sections of hole 5. Those results should be available in the next few weeks.
More importantly we are close to initiating our drill program on our Coipasa property. Based on size, TEM and surface sample grades Coipasa has to be one of our most prospective projects. We our finalizing terms of the program with the Ancovinto Indigenous Community executive and we hope to collar our first hole shortly. In summary we feel that we are just now getting started in proving that our properties have the potential to deliver high grade lithium brine deposits. The fact that on our very first exploration project we encountered lithium bearing brines shows that the exploration team we have built in Chile is cable of delivering potential world class discoveries. I look forward to continuing to build out our portfolio of prospective lithium properties and more importantly continue drilling up our prospects as we move forward in developing a would class lithium company.
Lithium Chile Inc.