Lithium Chile Inc. announce that drilling has commenced on the third production well, Argento-3, on the Salar de Arizaro. The location of the third production well is 10 kms North of Argento-2 and is designed to expand the size and extent of the brine aquifer and to increase the existing lithium resource. The well is currenting drilling through 55 meters with a 13.5-inch bit and is expected to take between 45 and 90 days to complete. Lithium Chile has increased its interest in the Salar de Arizaro joint venture from 60% to 62.2% while reducing the cash payments due to SMG S.R.L ("SMG"), by $145,000 US, for a total cost of $1,855,000 US. The increased interest is a result of SMG returning the 2,500-hectare, non- resource claims on Chascha Sur where the Company's water well was drilled. The reduction in total claims resulted in Lithium Chile acquiring the additional interest in the claims where the lithium resource is being developed. Lithium Chile owns the water well and has filed a permit to use 70m3/hr for future lithium production. The first meeting with the Ministry of the Environment in relation to the water permit has been held and the permitting process is moving forward. The Company is also pleased to announce that its new diamond drill rig arrived over Christmas and has begun drilling the fourth exploration hole on the Salar de Arizaro property. The diamond drill holes are designed to provide the Company with additional geological data on the structure of formations as well as supply brine samples for testing. This is the fourth of eight exploration holes planned that will help determine the best location for the fourth production well. The Company continues to production test it's Argento-2 well. Pump tests are ongoing while various tools such as a hydrasleeve and packers plus are employed to isolate and identify higher lithium grade zones. The overall porosity of this well is higher than what was encountered in the first well, Argento-1. Overall results will be announced once testing is completed. A downhole pump has been purchased and installed on the Argento-1 production well. The installation of this pump will allow for continuous production of brine to facilitate ongoing evaporation studies, advanced metallurgical studies, and the development of a hydrological model of the basin. All the information gathered in Arizaro will be used to complete a
Preliminary Economic Assessment (PEA), Prefeasibility Study (PFS) as well as the final Environmental Impact Study (EIS); all expected to be completed by mid-2023. The Company is also pleased to announce it has retained Leandro Sastre as Senior Geological Consultant to oversee the geological development at the Salar de Arizaro. Mr. Sastre is a geology professional with over 20 years of experience in the international mining sector. He has worked extensively throughout Latin America with a focus on Argentina, Chile and Peru. Most recently Mr. Sastre served as Vice President of Exploration for Latin America and Asia-Pacific
region at Barrick Gold Corporation. Mr. Sastre's experience will be a valuable addition to the team.