Desert Lion Energy Closes Acquisition of the Helikon Lithium Project
TORONTO, ONTARIO--(Marketwired - Jan 9, 2018) - Desert Lion Energy Corp. ("Desert Lion" or the "Company") is pleased to announce the Company has successfully closed the acquisition of the Helikon Lithium Project (the "Project"). The Project is located within Desert Lion's existing 301km2 Exclusive Prospective License ("EPL"), which is situated 30km southeast of Karibib, Namibia (Figure 1). A 100% interest in the Project was acquired from a private local group in exchange for C$2.1M cash.
"The Helikon Project acquisition consolidates Desert Lion's position in the region, and provides the Company and shareholders with a robust pipeline of organic growth opportunities, including the historic Helikon 1 mine as well as proximal prospective brownfield exploration targets at Helikon 2 – 5," commented Tim Johnston, President and CEO of Desert Lion. "Combined with our strong cash position, we look forward to uncovering the potential of the Helikon Project and adding value to Desert Lion's asset base in Namibia."
To view "Figure 1 – Location of the Desert Lion EPL and Helikon Lithium Project," please visit the following link: http://media3.marketwire.com/docs/desert_lion_energy_jan09_fig01.pdf
Helikon comprises a series of Pan African age stacked, sub parallel Lithium – Caesium – Tantalum ("LCT") type pegmatites that have been intruded into marbles and calc silicates belonging to the Karibib Formation. All five of the pegmatite exposures have in the past been exploited for lithium bearing minerals (lepidolite, petalite and amblygonite), tantalite as well as beryl. Helikon 1, located 750 metres (m) to the south of Helikon 2 – 5, is the largest exposed pegmatite at the Project with a strike length of 350m, an average thickness of 65m and dips 70° to the north. The Helikon 2 – 5 pegmatites define a discontinuous strike length of some 1,700m with variable dips and thicknesses (Figure 2).
In 2017, Desert Lion completed an initial Phase 1 diamond drilling, channel and trenching program at Helikon 1 – 5 aiming to validate surface expressions as well as near surface downdip extensions of visible lepidolite, petalite and tantalite mineralization observed at surface workings, dumps and stockpiles. A total of 17 holes for 1,359m of diamond and reverse circulation drilling was completed, with the following notable Li2O intercepts being reported (Table 1 and Figure 2):
| Table 1. Summary of significant intercepts, Phase 1 Helikon 1 – 4 | |||||||||
| Helikon Phase 1 Drilling | |||||||||
| Target ID | Hole ID | Azi/Dip (°) | From (m) | To (m) | Length (m) | True Width (m) | Li2O % | Comments | |
| HELICON 1 | HDH002 | 000/-90 | 8.24 | 24.24 | 16.00 | 14.3 | 0.97 | Ta average >400ppm, Cs, Nb & Rb anomalous | |
| Including | 8.24 | 13.20 | 4.96 | 4.43 | 1.67 | ||||
| HDH003 | 180/-55 | 0.89 | 4.20 | 3.31 | 3.31 | 2.18 | Be, Cs, Rb, Sn & Ta anomalous | ||
| HDH004 | 000/-60 | 1.10 | 8.88 | 7.78 | 2.37 | 0.91 | Ta average >200ppm, Cs, Nb & Rb, Sn anomalous | ||
| Including | 1.10 | 2.06 | 0.96 | 0.29 | 1.72 | ||||
| 5.00 | 6.00 | 1.00 | 0.3 | 1.68 | |||||
| 7.00 | 7.91 | 0.91 | 0.28 | 1.25 | |||||
| HDH005 | 180/-60 | 1.00 | 15.00 | 14.00 | 4.27 | 0.95 | Ta average >200ppm, Cs, Nb, Rb, Sn anomalous | ||
| Including | 1.97 | 7.27 | 5.30 | 1.62 | 1.26 | ||||
| HELICON 2 | HDH012 | 000/-55 | 32.80 | 33.85 | 1.05 | 1.05 | 0.70 | ||
| HELICON 4 | HDH014 | 000/-50 | 58.26 | 66.26 | 8.00 | 2.1 | 0.81 | Ta average >200ppm, Be, Cs, Nb & Rb anomalous | |
| Including | 58.26 | 60.26 | 2.00 | 0.52 | 1.29 | ||||
| HDH015 | 000/-70 | 33.63 | 34.65 | 1.02 | 0.79 | 2.52 | Ta average >200ppm, Be, Cs, Nb, Rb, Sn anomalous | ||
| 39.85 | 40.65 | 0.80 | 0.62 | 1.25 | |||||
| 44.52 | 51.30 | 6.78 | 5.25 | 1.85 | |||||
| 58.65 | 59.31 | 0.66 | 0.51 | 1.13 | |||||
Since October 2017, Desert Lion has embarked on a second phase of drilling aiming to test strike and dip extensions at Helikon 1 – 5, as well as drill testing the numerous stockpiles and dumps surrounding the workings. Drilling was completed in December 2017, with a total of 4,991m being completed. An additional 271 RC holes for 1,202m was completed over the dumps and stockpiles. Results are anticipated during January 2018, after which a Phase 3 drilling program will be initiated in order to delineate National Instrument 43-101 compliant Mineral Resource estimate(s) over Helikon 1 – 5 during the second quarter of 2018 (Figure 2).
To view "Figure 2 – Helikon Project showing drilling completed to date and notable intercepts from Phase 1," please visit the following link: http://media3.marketwire.com/docs/desert_lion_energy_jan09_fig02.pdf
Quality Assurance and Quality Control
The accuracy of the scientific and technical information in this news release has been verified and approved by Mike Venter, Pr.Sci.Nat and VP Exploration for Desert Lion, who is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Venter has also verified the sampling, analytical and test data underlying the scientific and technical information disclosed herein. The exploration program was directly supervised and executed by Dr. Salif Napon, P Geo, PhD, a Desert Lion consultant and a Qualified Person as defined by NI 43-101.
Drilling completed at Helikon has been carried out using diamond and reverse circulation methods. Recoveries of core and chip samples from the drilling program were considered satisfactory, as were the sampling methods that follow Desert Lion's internal Standard Operating Procedures that are based on CIM Best Practice Guidelines.
Desert Lion has used two internationally accredited analytical laboratories for the preparation and analyses of its samples to date: ALSChemex and ACTLabs, each of which is independent of Desert Lion. Over and above the laboratory quality assurance quality control ("QA/QC") routinely implemented by both labs (in Canada) using pulp duplicate analysis, Desert Lion has developed an internal QA/QC protocol which utilizes Certified Reference Materials ("CRMs"), blanks and coarse crush duplicates on a systematic basis with the samples shipped to the analytical laboratories, as follows: 1 standard, 1 duplicate and 1 blank are inserted every 30 samples (giving an average of c.10%). The samples assayed at ACTLabs were processed using the method named UltraTrace 7, which combines a Sodium Peroxide Fusion with ICP and ICP/MS with all metals being solubilized. The samples assayed at ALSChemex were processed using the following 2 methods: ME-MS89L (50-Element using Na2O2 fusion and ICP-MS) and Li-OG63 (ore grade Li by HF-HNO3-HClO4 digestion, HCl Leach).
In the QP's opinion, there are no factors that could impact on the accuracy or reliability of these results.
About Desert Lion Energy
Desert Lion Energy Corp. is a lithium developer and producer focused on building Namibia's first large-scale lithium mine and is located 30km from Karibib and approximately 210km from the nation's capital of Windhoek. Desert Lion's lithium project is located within a 301km2 prospective land package, with known lithium bearing pegmatitic mineralization and is currently in Phase 1 of its production plan, processing material and exporting lithium concentrate from stockpiles. The project site is accessible year-round by road and has access to power, water, rail, port, airport and communication infrastructure. Desert Lion has entered into an agreement with Camex Energy Corp. (TSX VENTURE:CXE.H) to complete an amalgamation and reverse take-over of Camex Energy Corp. Desert Lion Energy Corp. expects to be listed on the TSX Venture Exchange in the first quarter of 2018.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget" "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved." Forward-looking information includes, but is not limited to: statements and expectations regarding the expected timing of receipt of the phase 2 results and initiation of the phase 3 drilling program, and completion of the proposed Transaction. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to completion of the proposed Transaction, the Company's ability to secure the necessary shareholder and regulatory approvals required to complete the Transaction, the Company's ability to complete the non-brokered private placement, the total amount of funds raised pursuant to the Offering and the non-brokered private placement, the ability to raise funds to advance the Company's lithium project located in Namibia. Although the Company has attempted to identify important factors that may cause results not to be as anticipated, estimated or intended, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this new release and the Company does not undertake to update or revise any forward-looking information this is included herein, except in accordance with applicable securities laws.
Contact
Desert Lion Energy Corp.
Tim Johnston
President & CEO
(416) 309-2953
Desert Lion Energy Corp.
Salisha Ilyas
VP, Investor Relations
(416) 309-2953
info@desertlionenergy.com
www.desertlionenergy.com