Blue Sky Lithium is a lithium exploration company with the rights to earn 100% interests in projects located in the world class Lithium Triangle region in Argentina.

Projects located in the Hombre Muerto Salt flat, adjacent to Galaxy Resources (mkt cap; A$1.2bn) and Livent Corporation (ex-FMC Corp., NYSE listed)  (mkt cap; ~US$3.8bn). POSCO (mkt cap. A27.3bn) is a new entrant subject to part sale of GXY’s Sal de Vida project.

The Hombre Muerto Salar is the premier lithium brine basin in Argentina – high grade, low impurities, (Li:Mg <4) Livent’s El Fenix operation has been in production for over 20 years.

Targeting fast tracking to exploration with a potential resource estimate targeted for Q3 2019.

Location

•Six project areas totalling ~ 25,000 Ha of landholdings
•Potential brine areas conservatively comprise ~6,900Ha
•Rich setting for lithium brine development – ground waters sourcing volcanic rocks, hydrothermal activity,  a closed basin, arid climate, faulted environment
•Candelas project main focus of exploration
•Other targets lie within the Western Basin; Catalina, PataPila, Rana de Sal, Catalina & Deceo

Candelas

  • Encompasses the 15km x 3-4km Los Patos delta
  • Extensive exploration potential, adjacent to Galaxy’s Sal de Vida project
  • Very shallow targets below surficial alluvial cover
  • Sufficient area for evaporation ponds, processing infrastructure & great fresh, process water
  • Rio Los Patos accounts for ~79% of incoming waters into the salar which drain likely Li source rocks from the Cerro Galan volcano (associated fumaroles noted in the delta)

Surface Sampling

•Galaxy’s closest drilling to Candelas indicates substantial volumes of brine hosted by coarse sands and gravels similar to those thought to exist at Candelas; perfect permeable host
•Recent surface sampling in the north returned results similar to that obtained by Galaxy:

GXY:  ~50-60ppm Li  DMI:  to 59 ppm Li

•Los Patospalaeochannelclearly visible running into Galaxy ground, brine host
•Potential for significant volumes of brine to exist at depth within the Candelas channel
•Gravity & CSAMT (resistivity) survey completed. Aim to generate target areas for drilling
•Survey conducted by highly regarded group Quantecwho conducted work at Sal de Vida for Galaxy

Geophysics

•CSAMT (Controlled Source Audio-frequency Magnetotellurics) survey recently conducted by QuantecGeoscience Ltd
•Survey covered ~10km over 5 profile lines
•Profiles interpreted to contain “…very conductive and shallow units that are compatible with units being saturated with brine…” (Quantec)(ASX:DMI 6 June 2018)
•Interpreted brine layers range from ~150-400m+ thickness over entire extent of the survey

•Interpreted brine layers remain open to the west
•Gravity survey also conducted at the same time
•Survey covered the ~15km over 8 profile lines
•Profiles interpreted a deep basin-channel environment with depths of up to 600m
•Interpretation supports CSMAT findings of a large, deep channel hosting significant brine layers
•Follow up geophysics extending lines to commence in August

Western Basin Projects

  • Several areas covering margins of the Hombre Muertosalar,  includes potential alluvial fan covered salar targets
  • Initial near surface water sampling highly encouraging, several samples >1,000 mg/t Li
  • Follow up geophysics (gravity & resistivity) surveys to commence in August

Argentina

  • In 2015 Mauricio Macri was elected President and has championed the opening up of the Argentinian economy to international investment
  • The fixed exchange rate between the US$ and Argentinian Peso has been dropped and capital controls are no longer in place
  • The majority of export duties and trade controls have been removed. Consistent Royalty regime for all minerals across most of the country introduced in 2017
  • FMC, a US based company, has been successfully producing lithium carbonate and lithium hydroxide in Argentina for more than 20 years
  • Results from the recent 2017 regional elections have shown that the electorate continues to support Macri’s party and its progressive government policies