VAL-D'OR, QC, Jan. 5, 2018 /PRNewswire/ - Further to its news release dated December 14, 2017, ABE Resources Inc. (ABE.V) (ABEPF) "Company" or "ABE") is pleased to announce that it has obtained the conditional acceptance of the TSX Venture Exchange (the "TSXV") to acquire the Sirmac lithium property (the "Sirmac Property") from Nemaska Lithium Inc. ("Nemaska Lithium") pursuant to the asset purchase agreement entered into between the parties on December 13, 2017 (the "Transaction").
In connection with the Transaction, ABE has received an independent technical report on the Sirmac Property (the "Technical Report") from Nemaska Lithium, dated January 15, 2014, prepared by qualified persons Guy Desharnais, Ph.D., P.Geo., Jean-Philippe Paiement, M.Sc., P.Geo, and Jonathan Gagné, P.Eng. in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"), which will be updated and filed in advance of the closing of the Transaction.
The Transaction remains subject to the final approval of the TSXV and to standard closing conditions, including the filing of the updated Technical Report. A copy of the updated Technical Report will be available under the Company's profile on SEDAR at www.sedar.com in advance of the closing of the Transaction.
The Company is further pleased to present certain historical estimates and additional information on the Sirmac Property based on work performed by Nemaska Lithium in 2012. The technical information discussed below is derived from the existing Technical Report and previous news releases of Nemaska Lithium.
The Sirmac Property consists of 24 mining claims having a total area of approximately 1,100 hectares located approximately 180 kilometres North-West of Chibougamau, in the province of Québec.
In 2012, Nemaska Lithium conducted a successful exploration campaign. In total, 9 sites were mechanically stripped for a surface area of approximately 13,000 m2. There were 29 channels completed over 739 metres for a total of 506 samples (selected results below, for full results see the Nemaska Lithium news release dated November 5, 2012).
Seven channels samples spaced every 25 metres were taken from Dyke #5. Five of the seven channel results reported grades of 1.41% Li2O or higher with the best results coming from:
- SIR-12-R02 grading 1.73% Li2O over 16.5m
- SIR-12-R05 grading 1.68% Li2O over 27 m
In addition, two channels (SIR-12-R14 & SIR-12-R15) were completed on the newly found West extension (Laurisha extension) of Dyke #5. Results from these channels included:
- SIR-12-R14 grading 1.87% Li2O over 4.5 m
- SIR-12-R15 grading 1.48% Li2O over 6.6 m
Also at about 200m NNE of Dyke #5 (Dyke 0+00), three channels were completed (SIR-12-R16 - SIR-12-R18). The results were:
- SIR-12-R16 grading 1.46% Li2O over 4.05 m
- SIR-12-R17 grading 1.69% Li2O over 7.5 m
- SIR-12-R18 grading 1.79% Li2O over 3 m
Also as part of the same exploration program, Nemaska Lithium completed a diamond drill campaign of 72 shallow drill holes (3,414.5 m). A total of 1,953 samples, including quality control samples (13%), were sent to the lab for assay (selected results below, for full results see the Nemaska Lithium news release dated November 13, 2012).
Drill results from this program reported multiple intersections over 2% Li2O. More specifically, Nemaska Lithium intersected mineralization of up to 2.98% Li2O. This grade approaches the grade found at the Greenbushes deposit, which is the highest grade hard rock lithium deposit in the world.
Some of the best diamond drill hole results from Dyke #5 included:
- SIR-12-01 grading 1.30% Li2O over 35.05 m, including 2.30% Li2O over 12.35 m
- SIR-12-03 grading 1.19% Li2O over 32.35 m, including 2.06% Li2O over 9.0 m
- SIR-12-17 grading 1.53% Li2O over 32.2 m, including 2.56% Li2O over 6.0 m
- SIR-12-21 grading 1.43% Li2O over 32.1 m, including 2.58% Li2O over 10.5 m
- SIR-12-23 grading 1.40% Li2O over 29.4 m, including 2.01% Li2O over 10.5 m
- SIR-12-32 grading 1.67% Li2O over 5.0 m, including 2.98% Li2O over 2.7 m
The Laurisha Extension (West of Dyke #5). Three holes were drilled:
- SIR-12-18 grading 1.27% Li2O over 5.7 m
- SIR-12-19 grading 1.50% Li2O over 4.1 m
- SIR-12-20 grading 1.69% Li2O over 5.0 m
On the North Extension of Dyke #5, a total of 12 holes were reported. The best results were:
- SIR-12-45 grading 1.16% Li2O over 7.6 m
- SIR-12-46 grading 0.94% Li2O over 7.0 m, including 1.41% Li2O over 3.0 m
- SIR-12-49 grading 1.15% Li2O over 19.8 m
- SIR-12-50 grading 1.04% Li2O over 13.5 m, including 1.99% Li2O over 6.0 m
- SIR-12-61grading 1.15% Li2O over 7.8 m, including 2.27% Li2O over 3.3 m
On Dyke 0+00 (200 m NNE of Dyke #5) one hole was reported at
- SIR-12-63 grading 1.43% Li2O over 10.5 m
A site visit was conducted by the co-authors of the existing Technical Report, Messrs. Paiement and Desharnais, in December 2012. The visit enabled the authors to view the core storing facilities and the stripped area of the Sirmac Property deposit and to familiarize themselves with the region. The data verification was done on 4 major points: (i) validation of the database and relations between each table (collars, deviations, lithologies, and assays); (ii) quality control/quality assurance ("QA/QC") data analysis; (iii) checks of the drill hole collars using GPS; and (iv) independent control sampling.
The existing Technical Report includes the following historical estimates for the Sirmac Property:
Table 1: Historical Estimates for the Sirmac Property with 0.50% Li2O Cut-Off Grade
Effective date of December 2013.
The historical estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definitions Standards for mineral resources in accordance with NI 43-101. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are exclusive of the measured and indicated resources.
Bulk density of 2.70 t/m3 is used. Rounded to the nearest thousand.
Ta2O5 mineralization has yet to demonstrate recoverability and potential for economic extraction.
While the Company considers these historical estimates to be relevant to investors, as they may indicate the presence of mineralization, a qualified person has not done sufficient work for ABE to classify the historical estimates as current "mineral resources" or "mineral reserves" (as defined in NI 43-101) and the Company is not treating these historical estimates as current "mineral resources" or "mineral reserves".
All block modelling, 3D solid generation and geological interpretation was conducted by SGS Geostat. Modelling and block interpolation was done using Genesis © software. As of December 2013, no other deposit in the Sirmac Property has mineral resources stated or estimated. In order to limit the mineral resources representing "a reasonable prospect of economic extraction", a Whittle © Pit optimization was completed using the Lerchs-Grossman 3D algorithm. Considering the blocks limited to the optimized pit shell and a cut-off grade of 0.50% Li2O, the Sirmac Property comprises 185kt of measured resources at 1.40% Li2O, 79kt of indicated resources at 1.40% Li2O, and 40kt of inferred resources at 1.10% Li2O (see Table 1 above). These historical estimates of mineral resources do not represent mining reserves since they have not shown economic viability.
The existing Technical Report confirms that all sample assay results were independently monitored through a QA/QC program including the insertion of blind standards, blanks and the reanalysis of duplicate samples at a second umpire laboratory. The results of the QA/QC program and the resampling program indicate that the sample database is of sufficient accuracy and precision to be used for the generation of the historical estimates.
"It is these high-grade results that sparked our interest in Sirmac and we quickly recognized it as an underexplored property," commented Yves Rougerie, President and CEO of ABE Resources. "Nemaska Lithium's work clearly demonstrates that there are multiple lithium bearing pegmatite dykes at Sirmac. We already have historical estimates on dyke #5, from which to base our initial exploration work. This resource is based on very shallow drilling, and after visting the property I believe that Dyke #5 still holds ample potential for additional tonnage at depth and along strike. In addition, there are a number of other mineralized dykes on the property that warrant follow-up drilling as well as numerous dykes which have been identified and have yet to be explored. Armed with this kind of data I am confident that ABE can put together a targeted cost-effective exploration program that can quickly deliver results. The macro picture for lithium battery materials remains very strong, driven by the adoption of lithium ion batteries in electric vehicles, energy storage and consumer products. New sources of lithium are required to fulfill this growing demand."
The scientific and technical information in this release has been reviewed and approved by Yves Rougerie, Geologist, President and CEO of the Company. Mr. Rougerie is a "qualified person" as defined in NI 43-101.
The Company also announces that it granted 100,000 incentive stock options to a consultant of the Company on December 27, 2017, pursuant to the Company's incentive stock option plan. Each option is exercisable into one common share of ABE at a price of $0.55 per share for a period of 5 years from the date of grant. 25% of the options vest immediately, 25% will vest 6 months after the date of grant, and the remaining 50% will vest 12 months following the date of grant.
About ABE Resources Inc.
ABE Resources Inc. is a Québec mineral exploration company focused on the discovery and development of mineral deposits of economic potential primarily in the province of Québec. ABE is actively exploring the Dôme Lemieux copper property and has recently signed a definitive agreement with Nemaska Lithium Inc. to acquire a 100% interest in the Sirmac lithium property, both of which are located in the province of Québec, Canada.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the historical estimates, the estimates of cut-off grade and other factors underlying the historical estimates, the potential to extend the historical estimates to other portions of the Sirmac Property, the Company's plans for further drilling and exploration, the Company's ability to obtain all required approvals to complete the Transaction; and the business and operations of the Company upon completion of the proposed Transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks and other factors include, but are not limited to: the historical estimates of mineral resources may never become mineral reserves and do not have demonstrated economic viability; the assumptions made to calculate the historical estimates may turn out to the inaccurate; additional drilling and exploration may lead to a determination that there is no potentially viable mine plan for the Sirmac Property; general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the ability of the Company to execute and achieve its business objectives. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.