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INFERREDRESOURCEESTIMATIONOFLITHIUMAND
POTASSIUMATTHECAUCHARIANDOLAROZSALARS,JUJUY
PROVINCE,ARGENTINA
PREPAREDFOR:
TORONTO,CANADA
PREPAREDBY:
MARKKING,PH.D.,P.GEO
CANADIANPROFESSIONALGEOSCIENTISTREGISTEREDWITH
THEASSOCIATION
OF
PROFESSIONAL
GEOSCIENTISTS
OF
NOVA
SCOTIA
GROUNDWATERINSIGHT,INC.30OCEANVIEWDRIVE,HALIFAX,NOVASCOTIA,B3P2H3
FEBRUARY15th
2010
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i
TABLEOFCONTENTS
ABBREVIATIONS ..............................................................................................................................ix
SUMMARY......................................................................................................................................xii
S.1TermsofReference ..............................................................................................................xii
S.2PropertyLocation,DescriptionandOwnership ................................................................... xii
S.3Geology.................................................................................................................................xii
S.4Mineralization..xiii
S.5ExplorationConceptandStatus .......................................................................................... xiii
S.6Conclusions..........................................................................................................................xiv
S.7Recommendations...............................................................................................................xiv
1 INTRODUCTION........................................................................................................................... 1
1.1AuthorizationandPurpose.................................................................................................... 1
1.2SourcesofInformation.......................................................................................................... 1
1.3ScopeofPersonalInspection ................................................................................................ 2
2 RELIANCEONOTHEREXPERTS ................................................................................................... 5
3 PROPERTYDESCRIPTIONANDLOCATION................................................................................... 7
3.1Location ....................................................................................................................... .......... 7
3.2PropertyArea ........................................................................................................................ 9
3.3TypeofMineralTenure....................................................................................................... 12
3.4Title...................................................................................................................................... 12
3.5PropertyBoundaries............................................................................................................ 12
3.6EnvironmentalLiabilities ..................................................................................................... 13
3.7Permits................................................................................................................................. 13
4ACCESSIBILITY,CLIMATE,LOCALRESOURCES,INFRASTRUCTUREANDPHYSIOGRAPHY.......... 14
4.1Topography.......................................................................................................................... 14
4.2Access .................................................................................................................................. 16
4.3PopulationCentres.............................................................................................................. 16
4.4Climate................................................................................................................................. 16
4.5Infrastructure ...................................................................................................................... 18
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5 HISTORY .................................................................................................................................... 19
6 GEOLOGICALANDHYDROLOGICALSETTING............................................................................ 20
6.1RegionalStructuralFeatures ............................................................................................... 20
6.2Regional
Geology................................................................................................................. 20
6.3LocalGeology ...................................................................................................................... 22
6.3.1CarbonateFacies......................................................................................................... 23
6.3.2BoraxFacies ................................................................................................................ 23
6.3.3SulphateFacies ........................................................................................................... 24
6.3.4ClayFacies................................................................................................................... 26
6.3.5SodiumChlorideFacies............................................................................................... 26
6.4Vertical
Geological
Section.................................................................................................. 27
6.4.1UpperMixedSequence............................................................................................... 29
6.4.2ThinBeddedSequence ............................................................................................... 29
6.4.3CoarseBeddedSequence ........................................................................................... 30
6.5Hydrogeology ...................................................................................................................... 32
6.5.1SurfaceWater ............................................................................................................. 32
6.5.2Groundwater............................................................................................................... 35
6.5.3Water
Balance............................................................................................................. 36
7 DEPOSITTYPES.......................................................................................................................... 37
8 MINERALIZATION...................................................................................................................... 39
9 EXPLORATION ........................................................................................................................... 40
9.1Overview.............................................................................................................................. 40
9.2SurfaceSamplingProgram .................................................................................................. 41
9.3SeismicGeophysicalProgram.............................................................................................. 44
10
DRILLING ................................................................................................................................. 47
10.1ReverseCirculationDrillingProgram ................................................................................ 47
10.2DiamondDrillingProgram................................................................................................. 59
11SAMPLINGMETHODANDAPPROACH..................................................................................... 60
11.1Background........................................................................................................................ 60
11.2SurfaceBrineSamplingMethods ...................................................................................... 60
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11.3RCBoreholeSamplingMethods........................................................................................ 60
11.4DDBoreholeSamplingMethods ....................................................................................... 61
12SAMPLEPREPARATION,ANALYSESANDSECURITY................................................................. 62
12.1Overview............................................................................................................................ 62
12.2SamplePreparation........................................................................................................... 62
12.2.1SurfaceBrineSamplePreparation............................................................................. 62
12.2.2RCBoreholeBrineSamplePreparation..................................................................... 62
12.2.3DDBoreholeCoreSamplePreparation ..................................................................... 62
12.3BrineAnalysis .................................................................................................................... 63
12.3.1AnalyticalMethods ................................................................................................... 63
12.3.2Analytical
Quality
Assurance
and
Quality
Control
(QA/QC) ..................................... 63
12.4GeotechnicalAnalyses....................................................................................................... 68
12.4.1Overview ................................................................................................................... 68
12.4.2 AnalyticalMethods .................................................................................................. 68
12.5SampleSecurity ................................................................................................................. 69
13 DATAVERIFICATION................................................................................................................ 70
13.1Overview............................................................................................................................ 70
13.2Site
Visit .......................................................................................................................... ... 70
13.3LaboratoryQA/QCResults ................................................................................................ 71
13.4BrineCompositionTrends................................................................................................. 72
13.5TechnicalCompetence ...................................................................................................... 72
14 ADJACENTPROPERTIES........................................................................................................... 73
15 MINERALPROCESSINGANDMETALLURGICALTESTING ........................................................ 75
15.1Overview ............................................................................................................................ 75
15.2Simulated
Solar
Evaporation
Solubility
Testing................................................................. 75
15.2.1ExperimentalMethods .............................................................................................. 75
15.2.2TestResults ................................................................................................................ 77
15.2.3PhaseDiagrams.......................................................................................................... 81
15.2.4DiscussionandConclusions ....................................................................................... 82
16 MINERALRESOURCEESTIMATE............................................................................................. 84
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16.1Overview............................................................................................................................ 84
16.2ConceptualGeologicModel .............................................................................................. 84
16.3BlockModelConstruction ................................................................................................. 84
16.4Resource
Estimate
Boundaries.......................................................................................... 87
16.5DrainablePorosity ............................................................................................................. 89
16.6LithiumDistribution........................................................................................................... 90
16.7InferredinsituResourceEstimation ................................................................................. 94
16.8CutoffAnalysis.................................................................................................................. 95
17 OTHERRELEVANTDATAANDINFORMATION ........................................................................ 96
18 INTERPRETATIONANDCONCLUSIONS ................................................................................... 97
19
RECOMMENDATIONS ............................................................................................................. 98
19.1Objectives.......................................................................................................................... 98
19.2HydrogeologicalInvestigations ......................................................................................... 98
19.2.1ResourceDefinitionDrilling ....................................................................................... 98
19.2.2PumpingTests............................................................................................................ 98
19.2.3GeophysicalSurveys ................................................................................................ 100
19.2.4MonitoringPrograms............................................................................................... 100
19.2.5Revised
Resource
Estimate...................................................................................... 100
19.2.6LongtermAquiferResponse ................................................................................... 100
19.3BrineProcessDevelopment ............................................................................................ 100
19.4EstimatedBudget ............................................................................................................ 101
20 REFERENCES.......................................................................................................................... 103
21 DATEANDSIGNATUREPAGE................................................................................................ 105
22 ADDITIONALREQUIREMENTSFORTECHNICALREPORTSONDEVELOPMENT
PROPERTIESANDPRODUCTIONPROPERTIES....................................................................... 107
23 ILLUSTRATIONS ..................................................................................................................... 108
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LISTOFTABLES
3.1StatusofMineraExarS.A.mineralclaimsontheCauchariandOlarozSalars ................... 10
8.1Comparative
chemical
composition
of
natural
brines
(wt
%)............................................. 39
10.1Brineconcentration(mg/L)anddensity(g/cm3)resultsfromRCBoreholeProgram ...... 48
10.2Averageconcentrations(g/L)andassociatedratiosfrombrinesamplesfromtheRC
BoreholeProgram............................................................................................................. 48
10.3Resultsofdrainableporositytesting................................................................................. 59
12.1CheckAssays(ASLvsUniv.Salta):RMAregressionstatistics ........................................... 66
12.2Summaryofgeotechnicalpropertyanalyses.................................................................... 68
15.1Concentration(wt%)anddensity(g/cm3)forthebrinefromboreholePE4 .................. 75
15.2Massbalanceintermsofsalts,solutionandevaporatedwater ...................................... 77
15.3Compositioninwt%andpropertiesoftheevaporatingbrine ......................................... 78
15.4Chemicalcompositioninwt%andmoistureofharvestedsalts ....................................... 79
15.5MineralizationofSaltsfromEvaporationTestat30C(4thStage) .................................. 80
15.6MineralizationofSaltsfromSolubilityTestat15C(4thStage) ....................................... 80
16.1Modellayerporosityestimates......................................................................................... 89
16.2Inferredinsitulithiumresource........................................................................................ 94
16.3Inferredinsitupotassiumresource .................................................................................. 95
17.1Comparisonofselectedlithiumbrineresources .............................................................. 96
19.1EstimatedBudget ............................................................................................................. 102
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LISTOFFIGURES
3.1Locationmap ......................................................................................................................... 8
3.2LAC
property
claims
for
the
Cauchari
Olaroz
Project........................................................ 11
4.1Topographymap ................................................................................................................. 15
4.2MonthlyaverageprecipitationforSusques ....................................................................... 17
4.3 MonthlyaverageprecipitationforOlacapato.................................................................... 17
6.1 RegionalgeologyinthevicinityoftheLACProject............................................................ 21
6.2 LocalgeologyoftheCauchariandOlarozSalars................................................................ 25
6.3 ConceptualsectionoftheCauchariandOlarozSalars...................................................... 27
6.4Conceptual
stratigraphical
column
of
the
Cauchari
and
Olaroz
Salars............................... 28
6.5CauchariOlarozWatershed.............................................................................................. 33
9.1Distributionoflithiumconcentrationinsurfacebrinesamples ......................................... 42
9.2Distributionofpotassiumconcentrationinsurfacebrinesamples.................................... 43
9.3Seismictomographylinescompletedduring2009............................................................. 45
9.4Exampleseismictomographyresults(Line1)..................................................................... 46
10.1PE1summarygeologiclogandbrineanalyses ................................................................ 50
10.2PE
2summary
geologic
log
and
brine
analyses ................................................................ 51
10.3PE3summarygeologiclogandbrineanalyses ................................................................ 52
10.4PE4summarygeologiclogandbrineanalyses ................................................................ 53
10.5PE5summarygeologiclogandbrineanalyses ................................................................ 54
10.6PE6summarygeologiclogandbrineanalyses ................................................................ 55
10.7PE7summarygeologiclogandbrineanalyses ................................................................ 56
10.8PE8summarygeologiclogandbrineanalyses ................................................................ 57
10.9PE
9summary
geologic
log
and
brine
analyses ................................................................ 58
12.1RMAplotforthefittedmultipleregressionmodelforpotassium ................................... 66
12.2RMAplotforthefittedmultipleregressionmodelforlithium......................................... 67
12.3RMAplotforthefittedmultipleregressionmodelformagnesium ................................. 67
14.1LocationmapofOrocobreclaims ..................................................................................... 74
15.1EvaporationpathofbrinefromCauchariSalar................................................................. 81
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15.2EvaporationpathofbrinefromCauchariSalar................................................................. 82
16.1Planviewoftheblockmodelextent................................................................................. 86
16.2Sectionshowingstratigraphywithintheblockmodel ..................................................... 87
16.3Lateral
extent
of
the
inferred
resource
estimation
zone.................................................. 88
16.4Laterallithiumdistributionintheinferredresourceestimationzone. ............................ 91
16.5Verticallithiumdistributionsintheresourceestimationzoneoftheblockmodel. ..... 92
16.6Driftanalysisoftheblockmodelalongthexaxis............................................................. 93
16.7Driftanalysisoftheblockmodelalongtheyaxis. ........................................................... 93
16.8Driftanalysisoftheblockmodelalongthezaxis.......................................................... 94
16.9Lithiumreservetonnageandgrade,asdeterminedbycutoffconcentration............... 95
19.1The
2010
drill
hole
program.............................................................................................. 99
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LISTOFPHOTOS
6.1BoundarybetweenCaucharyandOlarozSalars ................................................................. 22
6.2Carbonate
facies
(sinter)
in
the
western
margin
of
Cauchari
Salar .................................... 23
6.3BoraxfaciesinwesternCauchari ........................................................................................ 24
6.4ClayfaciesintheCauchariSalar ......................................................................................... 26
6.5SodiumChloridefaciesintheOlarozSalar ......................................................................... 27
6.6UpperMixedSequenceclaywithboraxmineralization ..................................................... 29
6.7ThinBeddedSequenceshowingalternatingsandandhalitelayers................................... 30
6.8SanddominantUnit ............................................................................................................ 31
6.9Porous
Halite
in
the
Coarse
Bedded
Sequence................................................................... 31
6.10RioRosariojustabovetheHighway74bridgecrossing................................................... 34
6.11RioOlaatAchibarca .......................................................................................................... 34
6.12RioTocomar8kmbelowAltoTocomar............................................................................ 35
9.1BrinesamplingfromashallowpitinCauchari.................................................................... 41
9.2Brinecollectionfromabandonedboraxproductionpit ..................................................... 41
11.1Cyclonewithplasticbag.................................................................................................... 61
11.2Rock
chip
tray
with
dry
and
wet
samples.......................................................................... 61
11.3Collectingtheundisturbedsamplefromsandcore.......................................................... 61
11.4Collectingundisturbedsamplefromclaycore.................................................................. 61
12.1Filtrationofbrineandclaymixture................................................................................... 63
12.2Brineafterfiltration........................................................................................................... 63
15.1Fiberglassevaporationpanandassociatedapparatus..................................................... 76
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LISTOFABREVIATIONS
%: percentage
C: temperatureindegreesCelcius
AAS: atomicabsorptionspectometry
ASTM: AmericanSocietyforTestingandMaterials
B: boron
b: width
B2O3 : boronoxide
B5O:borate
C:carbon
Ca: calcium
CaCO3: calciumcarbonate
CBS: coarsebeddedsequence
Cc: coefficientofcurvature
CCP:containercapacitypackage
Cl: chloride
Cl: chlorideion
cm: centimetre
CO3 :carbonate
Cu: uniformitycoefficient
d50 :mediandiameter
DD: diamonddrilling
DTRC:dualtubereversecirculation
g/cm3: gramspercubiccentimetre
g/L:gramsperlitre
GPS: globalpositioningsystem
H3BO3: boricacid
ha: hectare
HCO3 :bicarbonate
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HQ:diamonddrillingdiameter
Hz: hertz
ICP: InductivelyCoupledPlasma
JORC:Joint
Ore
Reserve
Committee
K: potassium
K/Li:potassiumtolithiumratio
K+: potassiumion
kg: kilogram
km:kilometre
km2 :squarekilometre
L:litre
L/s: litrepersecond
Li: lithium
Li2CO3:lithiumcarbonate
m: metre
m/s:metrepersecond
masl:metresabovesealevel
mg:milligram
Mg(OH)2 :magnesiumhydroxide
mg/L: milligramsperlitre
Mg/Li: magnesiumtolithiumratio
Mg++:magnesiumion
mm: millimetre
mol%: molarpercentage
Na+
:sodium
ion
NCH: Chileanstandard
ODEX: drillingmethod
pH:measureofacidityoralkalinity
PQ: drillingdiameterindiamonddrilling
PVC: polyvinylchloride
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QA/QC: qualityassurance/qualitycontrol
RC: reversecirculation
RMA:reductiontomajoraxis
rpm:
rotationsper
minute
RWRC: relativewaterreleasecapacity
SO4 : sulphate
SO4/(Mg+Ca):molarratio
SO4/K: sulphatetopotassiumratio
SO4/Li: sulphatetolithiumratio
SO4/Mg:sulphatetomagnesiumratio
SO4=
:
sulphateion
TBS:ThinBeddedSequence
TDS:totaldissolvedsolids
UMS: UpperMixedSequence
USD:UnitedStatesdollar
USDA:UnitedStatesDepartmentofAgriculture
UTM: UniversalTransverseMercatorcoordinatesystem
WGS:
WorldGeodetic
System
wt%: weightpercent
XRD:xraydiffraction
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SUMMARY
S.1TermsofReference
Thisreport(theReport)waspreparedforLithiumAmericasCorp.(theCompanyorLAC)to
document
the
basis
for,
and
results
of,
an
inferred
resource
estimate
on
mineral
claims
held
by
the
Company. Theestimateappliestolithium andpotassiumcontainedinbrineunderlyingtheOlarozandCauchariSalars,twosaltlakesinJujuyProvinceinnorthwesternArgentina.
TheformatandcontentofthisreportisintendedtofulfilltherequirementsofNationalInstrument43101StandardsofDisclosureforMineralProjects,includingForm43101F1 TechnicalReportand Companion Policy 43101 CP ToNational Instrument 43101 Standards of DisclosureforMineralProjectsoftheCanadianSecuritiesAdministrators(NI43101).ReportpreparationwassupervisedbyMarkKingPh.D.,P.Geo.,aqualifiedperson (theQP)who isindependentofLAC,assuchtermsaredefinedbyNI43101.
It
is
the
intention
of
LAC
to
file
this
document
with
the
Canadian
securities
regulatory
authorities
asanNI43101compliantTechnicalReport.
S2.PropertyLocation,DescriptionandOwnership
TheCauchariandOlarozSalarsarelocatedintheDepartmentofSusquesoftheProvinceofJujuyin northwestern Argentina, approximately 250 km northwest of San Salvador de Jujuy, theprovincial capital, and 100 km east of the international border with Chile. Average groundelevationofthesalarsis3950masl.
LAC, through its Argentinian subsidiary Minera Exar S.A., has obtained legal title to mining andexploration permits covering a total of 36 974 ha over the Cauchari and Olaroz Salars (the
CauchariOlaroz
Project
or
the
Project).
The
Provincial
Government
of
Jujuy
approved
the
LAC
EnvironmentalImpactsReportfortheCauchariOlarozProjectexplorationworkbyResolutionNo.25/09onAugust26,2009.
S.3Geology
TheCauchariandOlarozSalarsareSilverPeak,Nevadatypeterrigenoussalars. Thesedepositsoccurinstructuralbasinsinfilledwithsedimentsdifferentiatedasinterbeddedunitsofclays,salt(halite), sands and gravels. They host a lithiumbearing aquifer that has developed during aridclimaticperiods. TheconceptualgeologicmodelfortheOlarozandCauchariSalarsincludes:
AnUpper
Mixed
Sequence
(UMS)
This
is
the
surface
unit
in
the
salars.
It
includes
clays,
thin
evaporitefacies(sodiumchloride,mirabilite,sodaash,etc.),carbonatefacies,ulexitefaciesandthecoarseclasticsedimentsfromthealluvialconesencroachingonthesalars.
AThinBeddedSequence(TBS) Thisunitisatintermediatedepthandiscomposedofthinlybeddedclay,silt,sandandevaporitefacies(mostlyhaliteandgypsum).ThissequenceiscoarsergrainedthantheUMSwhichisdominatedbyclay.
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ACoarseBeddedSequence (CBS)This isthebottomsalarunitandconsistsofthick interlayeredsandandevaporite(mostlyhalite)beds.
These sediment sequences are underlain by bedrock composed mostly of Lower Ordovicianturbidites(shaleandsandstone)intrudedbyLateOrdoviciangranitoids. Alluvialfansextendonto
thesalars
from
surrounding
higher
ground.
S.4Mineralization
The brines of the Cauchari and Olaroz Salars have relatively high sulphate content and can beclassified as sulphate type brine deposits. The brines of Cauchari are saturated in sodiumchloride with total dissolved solids (TDS) on the order of 27% (324335 g/L) and an averagedensity of approximately 1.215 g/cm3. The other components present in these brines, whichconstitute a complex aqueous system, are: K, Li, Mg, Ca, SO4, HCO3, and B as borates and freeH3BO3.
S.5
Exploration
Concept
and
Status
The followingexplorationprogramswere initiated in2009,toevaluate the lithiumdevelopmentpotentialoftheProjectarea:
SurfaceBrineProgram Brinesampleswerecollectedfromshallowpitsthroughoutthesalarstoobtain a preliminary indication of lithium occurrence and distribution. A total of 55 sampleswerecollectedforlaboratoryanalyses.
SeismicGeophysicalProgramAseismicsurveywasconductedtosupportdelineationofbasingeometry,mappingofbasinfillsequences,and locating futureboreholesites. Atotalof24.7kmofseismicdatahavebeenacquiredalongsevenlines.
Reverse Circulation (RC) Borehole Program Dual tube reverse circulation drilling is beingconductedtodevelopverticalprofilesofbrinechemistryatdepth inthesalarsandtoprovidegeologicalandhydrogeologicaldata. NineRCboreholeshavebeendrilledforatotalof1333m.760brinesampleswerecollectedforlaboratorychemicalanalyses.
Diamond Drilling (DD) Borehole Program This program is being conducted to collectcontinuous cores for geotechnical testing (porosity, grain size and density) and geologicalcharacterization. Five DD boreholes have been drilled to date for a total of 1 280 m. 113undisturbed samples have been collected for geotechnical analyses. The boreholes werecompletedasobservationwellsforfuturebrinesamplingandmonitoring.
An inferred in situ resource estimate was prepared, based on the integration, analyses andinterpretationofresultsfromtheaboveoutlinedexplorationprograms. Thefollowingresourcetonnagesareindicated:
o 926000tonnesoflithiummetalor4.9milliontonnesoflithiumcarbonate;and
o 7.7milliontonnesofpotassium.
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This inferredresourceestimate is limited totheLACclaimareas inthenorthcentralpartoftheCauchariSalar.
S.6Conclusions
The
key
conclusions
from
this
work
are
as
follows:
Thelithiumandpotassiumresourcedescribedinthisreportoccursinasubsurfacebrine. Thebrineiscontainedwithintheporespaceofsalardepositsthathaveaccumulatedinastructuralbasin.
Aconceptualgeologicmodelhasbeendevelopedforthebasinwhich includesthreeprimary
salarunits:theUMS,theTBS,andtheCBS. TheCBS isthemostverticallyextensiveunitandhas the highest porosity. Consequently, it contains the majority of the resource. The salardeposits are constrained on the sides of the basin by alluvium and pedimenttype deposits,knowninthisreportastheBorderFacies.
Thebottom
boundary
of
the
resource
estimate
has
been
constrained
to
the
depth
of
drilling
conducted to date by LAC. Theexistingboreholes havenot encountered the bottom of thebasin. Estimatesfrom individualseismic lines indicatethatthebasinbottom isbetween300and600m,dependingonlocation. Thedepthsoftheboreholesusedintheinferredresourceestimaterangefrom176to249m. Consequently,theresourceremainsopenatdepth.
Thenorthandsouth lateral boundaries of the resourceestimate (i.e.,along the longitudinalaxisofthebasin)havebeenconstrainedtothecentralclusterofboreholesdrilledtodate,withrelativelyhighconcentrationsateitherendofthiszone. Consequently,someextensionoftheresourceinthesedirectionsispossible,basedonfuturedrilling.
Thehigh
dissolved
solids
content
of
the
brines
is
asource
of
variability
in
the
existing
analytical
results. AdditionalanalyticalQA/QCrefinementshouldbeconducted inadvanceofthenextlevel of estimation. On balance, however, it is the opinion of the independent QP that theexistingbrinedatasetisacceptableforuseinaninferredresourceestimate.
Extensivesamplingindicatesthatthebrinehasarelativelylowmagnesium/lithiumratio(lowerthanthree,onaverage),suggestingthatitwouldbeamenabletoconventionallithiumrecoveryprocessing. The brine is relatively high in sulphate which is also advantageous for brineprocessingbecausetheamountsofsodiumsulphateorsodaashrequiredforcalciumremovalwouldberelativelylow.
S.7Recommendations
Basedontheresultsofthecurrentinferredresourceestimateitisrecommendedtocontinuetheinvestigation of the lithium development potential of the CauchariOlaroz Project. It should benotedthatthecurrentinferredresourceestimateislimitedtoanareathatcoverslessthanhalfoftheLACminingandexplorationclaimsand isopenatdepth.Adetailedworkprogramhasbeenproposedandconsistsoftwomaincomponents:
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Hydrogeologicalinvestigationstofurtherrefinelithiumandpotassiumresourceestimatesandtoevaluatebrineextractabilityandlongtermaquiferhydraulics.
A metallurgical program to develop a lithium extraction process and to carry out pilot scaleprocessinvestigations.
ThisworkwouldsupportthecompletionofaprefeasibilitystudyfortheProjectduring2011,atanestimatedcostofapproximatelyUSD29.6million.
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1
1INTRODUCTION
1.1AuthorizationandPurpose
Thisreport(theReport)waspreparedforLithiumAmericasCorp.(theCompanyorLAC)todocumentthebasisfor,andresultsof,aninferredresourceestimateonmineralclaimsheldbytheCompany. Theestimateappliesto lithiumcontained inbrinewithinthebasinoftheOlarozandCauchariSalars,twodrysaltlakesinJujuyProvinceofnorthwesternArgentina.
TheformatandcontentofthisreportisintendedtofulfilltherequirementsofNationalInstrument43101StandardsofDisclosureforMineralProjectsincluding,Form43101F1 TechnicalReportand Companion Policy 43101CP To National Instrument 43101 Standards of DisclosureforMineralProjects,oftheCanadianSecuritiesAdministrators(NI43101). ReportpreparationwassupervisedbyMarkKingPh.D.,P.Geo.,aqualifiedperson(aQP)whoisindependentofLAC,assuchtermsaredefinedbyNI43101.
ItistheintentionofLACtofilethisdocumentwithCanadiansecuritiesregulatoryauthoritiesasanNI43101compliantTechnicalReport.
1.2SourcesofInformation
The inferred resourceestimatedocumented inthis report isbasedon the following informationsources:
Aconceptualgeologicmodelforthesalarbasins,whichinturnisbasedon:
o ExpertiseinsalargeologyheldbymembersoftheLACtechnicalteam;
o GeologicloggingoffivediamonddrillboreholesdrilledbyLAC;
o GeologicloggingofninereversecirculationboreholesdrilledbyLAC;
o AseismicsurveyconductedbyLAC;
Subsurface distributions of lithium and other dissolved constituents, delineated through
collectionand
analysis
of
more
than
750
brine
samples
from
reverse
circulation
boreholes;
Nearsurface distributions of lithium and other dissolved constituents, delineated throughcollectionandanalysisof55brinesamplesfromshallow,handdugpits;and
Formation porosity measurements, obtained through the collection and analysis of 113undisturbedcoresamplesfromdiamonddrillboreholes.
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2
Preliminary evaluation of lithium brine processing considerations is also reported herein.Processingwasevaluatedthrougha laboratorystudyofbrineevaporationandsaltssolubilitybytheUniversityofAntofagastainChile.
Sourcesofqualitativeinformationwerealsoimportantasabackgroundforpreparingthisreport,
andincluded
the
following:
Varioustechnicalpapersonsalargeologyandsalarbrinechemistry;
EvaluationoftheExplorationPotentialattheSalaresdeCauchariandOlaroz,ProvinceofJujuy,Argentina. InternalreportbyTRUGroupforLithiumAmericasCorp.(2009);
VariousmapsoftheServicioGeolgicoMineroArgentino;
Various discussions with LAC personnel familiar with the property and the LAC explorationprograms;
DetaileddiscussionswiththeblockmodelspecialistfortheProject,regardingthedevelopmentandstructureofthemodel;and
Personal inspection visits by the independent QP (Mark King) to the site, the field office inSusques,thelogisticsofficeinJujuy,andthecorporateofficeinMendoza(allinArgentina).
TheQPacknowledgesthefullandcompletecooperationofallLACpersonnelandLACcontractors,in assisting in the preparation of this report. All site information and data were made readilyavailable and all topicswereopen for critical examinationand discussion. Site information and
datawere
stored
in
an
orderly
manner
that
facilitated
retrieval.
1.3ScopeofPersonalInspection
TheQPvisitedtheProjectsiteandfieldofficeonDecember10and11,2009. Featuresthatwereinspectedandreviewedduringadrivingandwalkingtourofthesiteincludedthefollowing:
Overallsitelayout,salarfeatures,andsurroundingtopography;
Anoperatingdrillconductingtheongoingdrillingprogram;
Mostprevious
drilling
sites,
including
cuttings,
well
completions,
brine
ponds,
and
new
gravel
roadsconstructedtothesites;
Oneoftheshallowpitsusedforthenearsurfacebrinesamplingprogram;
Perimeterareasandalluvialfans;
Surfaceminingoperationsconductedbyothers;and
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The general location of lithium brine exploration work conducted by others, on adjacentpropertiesintheOlarozSalar.
ExplorationprogramcomponentsinspectedandreviewedattheSusquesfieldofficeincludedthe
following:
Samplingproceduresforbrine,rockchipsandcore;
Sampleandcorestoragefacilities;
Samplehandling,preparationandsecuritysystems;
Examplecoresandrockchips;
Fielddataentryandlogproductionprocedures;
InteractionwiththecentraldatastoragetechnicianattheMendozacorporateoffice;
Allplottedlogsandmappingavailableuptothetimeofthevisit;and
Staffoperations,responsibilitiesandmentoring.
The
QP
visited,
and
worked
from,
the
corporate
office
in
Mendoza
from
January
22
to
January
30,
2010. RelevantProjectfeaturesinspectedandreviewedatthattimeincludedthefollowing:
Hardcopiesofallanalyticaldataavailableuptothattime;
Projecttechnicalpapers;
Projectenvironmentalandpropertydocumentation;
Draftingandadministrativesupport;
Plottedborehole
logs
and
maps;
and
Blockmodelconstructionanddevelopment.
Throughthesepersonal inspectionsandadditionaloffsite interactionwiththeLACProjectteamand Project dataset, the independent QP has gained a clear understanding of the explorationprogram methods and results. Furthermore, the QP understands the manner in which theseresults support the inferred resource estimate, and the potential sources of uncertainty in the
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estimate. Inconsiderationofthesesources,itistheopinionoftheQPthattheinferredresourceestimate is appropriate and reasonable for this stage of the Project. The rationale for thisconclusion is provided in appropriate locations throughout this document, and particularly inSection13.
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2RELIANCEONOTHEREXPERTS
ThepreparationofthisReportwassupervisedbytheindependentQP,MarkKing,Ph.D.,P.Geo.,
at
the
request
of
LAC.
Dr.
King
is
a
hydrogeologist
with
25
years
experience.
He
has
provided
senior technical direction and handson project management on large groundwater projectsthroughout Canada and the US. One of his areas of expertise is groundwater modelling, whichrelatescloselytothedevelopmentoftheblockmodelusedfortheinferredresourceestimate. Healso specializes in field delineation and characterization of solute distributions in groundwater,whichisaprimaryobjectiveoftheLACProject.
A wide range of technical disciplines were required to address the objective of estimating andcharacterizingthelithiumresource. InpreparingtheReport,thesedisciplineswereledbyexpertsin each area. Overall review and verification of materials prepared by these experts wasconductedbyDr.King. ItisacknowledgedthatDr.Kingisnotanexpertinallthesedisparatefields
(e.g.,
salar
geology,
lithium
processing).
However,
his
expertise
in
quantitative
aspects
of
hydrogeology and in the delineation of solutes in groundwater is an appropriate foundation forevaluationoftheinferredresourceestimate,andinformationusedinitsdevelopment. Membersofthepanelofexperts,andtheirvariousrolesinpreparingReportmaterialsareasfollows:
EduardoPeralta,Ph.D.,GeologistExpertinsalargeology;
PedroPavlovic,M.Sc.,ChemicalEngineerExpertinmineralandbrineprocessing;Section15(Mineral Processing) is presented largely as prepared by Mr. Pavlovic since he is a world
renownedexpertinthissubjectarea;
Frits Reidel, B. Sc., Hydrogeologist with 23 years of experience Expert in groundwaterresource evaluations, aquifer characterization, and mining hydrology; background includesexperienceonotherbrineprojectsinNorthandSouthAmerica;
JohnKieley,P.Geo.(Canada) ProjectManagerandLACQPfortheProject;geophysicistwithmorethan35yearsexperienceinmineralexploration;
Waldo Perez Ph.D., P. Geo. CEO and President of Lithium Americas Corp.; explorationgeologist.
DaniloCastillo
Specialist
in
block
model
construction
for
resource
estimation,
with
Maptek
in
Chile.
The methods, results and interpretations provided in this Report have been developed by theabove noted experts. Subsequent review and evaluation is provided by the independent QP,basedonbackgroundexpertiseandobservationsfromtheProjectsiteanddataset. Inevaluatingthisinformation,thekeyissueconsideredbytheindependentQPiswhetherthemethods,results
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and interpretationsareappropriateandacceptabletosupportan inferredresourceestimate forthelithiumbrinedeposit.
For the purpose of thisReport, the independent QP has relied on an ownership and claim TitleOpinionprovidedbythelawfirmofDePablos&Associates. Thisopinionstatesthatagreements
withthird
parties
are
valid,
enforceable
and
comply
with
local
laws.
The
QP
has
not
researched
titleormineralrightsoftheProjectandexpressesnolegalopinionastotheownershipstatusoftheCauchariOlarozProject.
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3PROPERTYDESCRIPTIONANDLOCATION
3.1Location
TheCauchariandOlarozSalarsarelocatedintheDepartmentofSusquesintheProvinceofJujuyinnorthwesternArgentina. ThesalarsextendinanorthsouthdirectionfromS23o18toS24o05andinandeastwestdirectionfromW66o34toW66 o51.Theaverageelevationofbothsalarsis3950m.
Figure3.1showsthelocationofbothsalars,approximately250kmnorthwestofSanSalvadordeJujuy, the provincial capital. The midpoint between the Olaroz and Cauchari Salars is locateddirectlyonHighway52,55kmwestoftheTownofSusqueswheretheLACfieldofficesarelocated.ThenearestportisAntofagasta(Chile),located530kmwestoftheProject.
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Figure3.1:Locationmap.
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3.2PropertyArea
LAC has negotiated, through its Argentinian subsidiary Minera Exar S.A., mining and explorationpermits,andhasrequestedfromminingauthoritiesexplorationpermitscoveringatotalof48950haintheDepartmentofSusques,ofwhich36974hahavebeengrantedtodate.
Figure 3.2 shows the location of the LAC claims in the OlarozCauchari Project. The claims arecontiguousandcovermostoftheCauchariSalarandtheeasternportionoftheOlarozSalar. Table3.1 provides a summary overview of the 70 properties acquired for the Project. The aggregateproperty payments required by LAC under the agreements references in Figure 3.2 is USD5,785,000.
Under LACs usufruct agreement with Grupo Minero Los Boros S.A., LAC agreed to pay GrupoMineroLosBorosS.A.aroyaltyofUSD300,000atthebeginningofthecommercialproductionandathreepercentnetprofitinterestoncommercialproductionfromtheProject.LAChastheoption
to
purchase
such
royalty
by
a
one
time
payment
of
USD
7,000,000.
Under
LACs
usufuctagreementwithBoraxArgentinaS.A.,LACisrequiredtopayBoraxArgentinaS.A.anannualroyalty
ofUSD200,000commencingonceLACexercisesitsusufructoption. TherearenootherroyaltiesrelatedtotheCauchariOlarozProperties.
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Table3.1:StatusofMineraEXARS.AmineralclaimsatCauchariandOlarozSalars.MINERAEXARS.A.
CLAIM FILE CLAIM REQUESTED RECEIVED ABORIGINAL CONTRACT
NAME NUMBEROWNER
TYPE HA HA COMMUNITY TYPE
1 ZOILA 341C44 BoraxArgentinaS.A. MP 100 101 OLAROZCHICO UsufructAgreement
2 MASCOTA 394B44 BoraxArgentinaS.A. MP 300 302 MANANTIALES UsufructAgreement
3 UNION 336C44 BoraxArgentinaS.A. MP 300 100 MANANTIALES UsufructAgreement
4 JULIA 347C44 BoraxArgentinaS.A. MP 300 100 PUESTOSEY UsufructAgreement
5
SAENZPEA
354
C44
Borax
Argentina
S.A.
MP
300
100
PUESTO
SEY
Usufruct
Agreement
6 DEMASIASAENZPEA 354C44 BoraxArgentinaS.A. MP 100 59 PUESTOSEY UsufructAgreement
7 MONTESDEOCA 340C44 BoraxArgentinaS.A. MP 100 99 PUESTOSEY UsufructAgreement
8 JULIOA.ROCA 444P44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
9 ELENA 353C44 BoraxArgentinaS.A. MP 300 301 PUESTOSEY UsufructAgreement
10 EMMA 350C44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
11 URUGUAY 89N44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
12 UNO 345C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
13 TRES 343C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
14 DOS 344C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
15 CUATRO 352C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
16 CINCO 351C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
17 AVELLANEDA 365V44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
18 BUENOSAIRES 122D44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
19 MORENO 221S44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
20 SARMIENTO 190R44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
21 PORVENIR 116D44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
22 SAHARA 117D44 BoraxArgentinaS.A. MP 300 300 PUESTOSEY UsufructAgreement
23 ALICIA 389B45 BoraxArgentinaS.A. MP 100 99 PUESTOSEY UsufructAgreement
24 SIBERIA 306B44 BoraxArgentinaS.A. MP 24 24 PUESTOSEY UsufructAgreement
25
CLARISA
402B
44
Borax
Argentina
S.A.
MP
100
100
PUESTO
SEY
Usufruct
Agreement
26 DEMASIACLARISA 402B44 BoraxArgentinaS.A. MP 19 19 PUESTOSEY UsufructAgreement
27 PAULINA 195S44 BoraxArgentinaS.A. MP 100 98 PUESTOSEVICATUA UsufructAgreement
28 INES 220S44 BoraxArgentinaS.A. MP 100 102 PUESTOSEVICATUA UsufructAgreement
29 MARIAESTHER 259M44 BoraxArgentinaS.A. MP 100 100 PUESTOSEY UsufructAgreement
30 MARIACENTRAL 43E44 BoraxArgentinaS.A. MP 100 100 PUESTOSEVICATUA UsufructAgreement
31 DELIA 42D44 BoraxArgentinaS.A. MP 100 101 MANANTIALES UsufructAgreement
32 GRAZIELLA 438G44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
33 LINDA 160T44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
34 MARIATERESA 378C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
35 JUANCITO 339C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
36 ARCHIBALD 377C44 BoraxArgentinaS.A. MP 100 100 MANANTIALES UsufructAgreement
37 SANNICOLAS 91R94 BoraxArgentinaS.A. MP 100 100 HUANCAR UsufructAgreement
38 NELIDA 56C95 ElectroquimicaElCarmenS.A. MP 100 100 OLAROZCHICO UsufructAgreement
39 MARIAANGELA 177Z03 ElectroquimicaElCarmenS.A. MP 100 100 OLAROZCHICO UsufructAgreement
40 HEKATON 150M92 ElectroquimicaElCarmenS.A. MP 200 200 HUANCAR/OLAROZCHICO UsufructAgreement
41 VICTORIAI 65E92 ElectroquimicaElCarmenS.A. MP 200 200 HUANCAR/OLAROZCHICO UsufructAgreement
42 EDUARDO 183D90 ElectroquimicaElCarmenS.A. MP 100 100 OLAROZCHICO UsufructAgreement
43 CAUCHARIESTE 1149L09 MINERAEXARS.A. MP 5900 980 HUANCAR Staked
44
CAUCHARISUR
(1)
1072
L08
MINERA
EXAR
S.A.
EP
1501
PUESTO
SEY
Staked
45 EDUARDODANIEL 120M44 Fundacion MisindelaPaz MP 100 100 OLAROZCHICO OptiontoPurchase
46 JORGE 62L98 LuisLosiS.A MP 2352 2352 PUESTOSEY UsufructAgreement
47 VERANOI 299M04LuisAustinCekadaandCamiloAlbertoMorales
MP 2488 2488 PUESTOSEY OptiontoPurchase
48 SANANTONIO 72M99 GrupoMineroSantaRitaS.R.L MP 2500 2500 PUESTOSEY OptiontoPurchase
49 TITO 48P98 GrupoMineroSantaRitaS.R.L MP 200 100 PUESTOSEY OptiontoPurchase
50 MARIAVICTORIA(2) 121M03 GrupoMineroSantaRitaS.R.L MP 1800 OLAROZCHICO OptiontoPurchase
51 LUISA 61L08 GrupoMineroLosBorosS.A MP 4706 4705 HUANCAR/OLAROZCHICO UsufructAgreement
52 ARTURO 60L98 GrupoMineroLosBorosS.A MP 5100 5061 HUANCAR/OLAROZCHICO UsufructAgreement
53 ANGELINA 59L98 GrupoMineroLosBorosS.A MP 2346 2252 HUANCAR/OLAROZCHICO UsufructAgreement
54 MIGUEL 381M05 MarioMoncholi MP 100 100 PUESTOSEY OptiontoPurchase
55 CHICO 1231M09 MarioMoncholi MP 300 300 OLAROZCHICO OptiontoPurchase
56 CHICO3(1) 1251M09 MarioMoncholi MP 1100 OLAROZCHICO OptiontoPurchase
57 CHICO4(1) 1252M09 MarioMoncholi MP 1500 OLAROZCHICO OptiontoPurchase
58 LAYAVEA 27R00 SilviaRojo MP 1117 1116 MANANTIALES OptiontoPurchase
59 SULFA6 70R98 SilviaRojo MP 1759 1683 PUESTOSEY OptiontoPurchase
60 SULFA7 71R98 SilviaRojo MP 1824 1824 PUESTOSEY OptiontoPurchase
61 SULFA8 72R98 SilviaRojo MP 1946 1842 PUESTOSEY OptiontoPurchase
62 SULFA9 67R98 SilviaRojo MP 1570 1570 PUESTOSEY OptiontoPurchase
63
CAUCHARINORTE
349
R
06
Silvia
Rojo
EP
998
998
MANANTIALES
Option
to
Purchase
64 BECERRODEORO 264M44 SilviaSchapiro MP 100 100 PUESTOSEY OptiontoPurchase
65 OSIRIS 263M44 SilviaSchapiro MP 100 100 PUESTOSEY OptiontoPurchase
66 ALSINA 48H44 SilviaSchapiro MP 100 100 PUESTOSEY OptiontoPurchase
67 MINERVA 37V02 SylviaValente MP 250 230 OLAROZCHICO OptiontoPurchase
68 IRENE 140N92 TriboroS.A. MP 200 200 HUANCAR/OLAROZCHICO OptiontoPurchase
69 CHINCHINCHULIII 202E04 VicenteCosta MP 1000 931 HUANCAR/OLAROZCHICO UsufructAgreement
70 GRUPO LAINUNDADA 101C90 MINERAEXARS.A. MP 550 537 PUESTOSEY Purchase
TOTAL 48950 36974
MP:Miningpermit;EP:ExplorationpermitNotes:(1)Finalpermitpending.(2)ThispropertyisunderlegaldisputewithPropertyowner.
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Figure3.2:LACpropertyclaimsattheCauchariOlarozProject.
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3.3TypeofMineralTenure
There are two types of mineral tenure in Argentina: Mining Permits and Exploration Permits.Mining Permits are licenses that allow the property holder to exploit the property, providingenvironmental approval is obtained. Exploration Permits are licenses that allow the property
holderto
explore
the
property
for
aperiod
of
time
that
is
proportional
to
the
size
of
the
property
(5yearsper10000ha). AnExplorationPermitcanbetransformedintoaMiningPermitanytimebeforetheexpirydateoftheExplorationPermit,bypresentingareportandpayingcanonrent.
LAC acquired its interests in the Cauchari and Olaroz Salars through either direct staking orconcludingstraightforwardexplorationcontractswiththirdpartypropertyowners,givingLACtheoptiontomakegraduatedpaymentsoveraperiodoftimethatvariesfrom12monthstofiveyears
dependingonthecontract. Afinalpaymentwouldresultinoneofthefollowing,dependingonthearrangementwiththeowner:
Fullownership
by
LAC;
LACacquiresanoptiontopurchasetheproperty;or
LACacquirestherighttominethebrinesfromdepththroughpumpingbutthevendorretainstherighttomineboraxfromthesurface(UsufructContracts).
LACcanabandonacontractonanymineralpropertyatanytime,dependingontheresultsoftheexploration.
3.4Title
TheLACclaimsarerecorded intheProvincialCatastroattheJuzgadoAdministrativodeMinasintheprovincialcapitalofSanSalvadorofJujuy. LAChasprovidedaTitleOpinionfromthelawfirmofDePablos&Associatesthathasbeenreviewedforthepreparationofthisreport. Thisopinionstatesthatagreementswiththirdpartiesarevalid,enforceableandcomplywithlocallaws.Miningconcessionshavebeenproperlyregisteredandareingoodstanding.
3.5PropertyBoundaries
The LAC claims follow the northnortheast trend of the Cauchari and Olaroz Salars. Figure 3.2
showsthat
the
boundaries
of
the
claims
are
irregular
in
shape
(a
reflection
of
the
mineral
claim
law of the Province of Jujuy). While most countries use UTM coordinates, Argentina hasdeveloped its own grid system in Gauss Krueger Coordinates with the WGS 84 datum. Thecoordinates (GaussKrueger)oftheboundariesofeachclaimarerecorded inanexpediente intheclaimsdepartmentoftheJujuyProvincialMinistryofMines.
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3.6EnvironmentalLiabilities
LACcomplieswithlocalandnationalregulationsandadherestohighinternationalenvironmentalguidelines including the Equator Principles. Apreliminary review of the CauchariOlarozProjectsuggeststhatthepossibilityofsignificantenvironmentalliabilitiesislow. Lowpopulationdensity
inthe
region
and
distance
from
major
urban
centres
places
the
attention
of
potential
negative
impactofabrineoperationonlocalfloraandfauna.
The vegetation in the vicinity of the Cauchari and Olaroz Salars is typical of the high desertenvironment,consistingmainlyofxerophyteandhalophytebushes. Othervegetationincludestheyareta,copacopaandtolabushesaswellassomegrasses. Thereisnovegetationonthesurfacesofthesalars. ItthereforeappearsthatthepotentialdevelopmentoftheCauchariOlarozProject
intoabrineoperationwillnothaveanysignificantimpactsonthelocalflora.
Llamas,guanacosandvicunasarecommonintheregion.Thevicunawastraditionallyexploitedby
localinhabitants
for
its
meat
and
wool
and
also
used
in
special
rituals.
Past
un
restricted
hunting
resulted in nearextinction of the vicuna, which is now protected under a 1972 internationalagreement signed between Argentina, Chile, Peru and Ecuador. It appears that the potentialdevelopment of the CauchariOlaroz Project into a brineoperation willnot have any significantimpactsonthelocalfauna.
LAChaspreparedan inventoryofknownarcheologicalsites intheDepartmentofSusques. ThisinventoryshowsthattheCauchariOlarozProjectisremotefromthesesitesandthatthereforeanyimpactsareunlikely.
Five local indigenouscommunitiesare located in thevicinityof theCauchariOlarozProjectareaand
include:
Olaroz
Chico,
Huancar,
Pastos
Chicos,
Susques
and
Puesto
Sey.
LAC
has
designed
and
implementedaspecialcommunitiesrelationsprogramfor longtermcooperation. Inturnthesecommunities have provided required approvals on the LAC Environmental Impact Report (seeSection3.7below).
3.7Permits
The Provincial Government of Jujuy (Direccion Provincial de Mineria y Recursos Energeticos)approved the LAC Environmental Impacts Report (the EIA) for the CauchariOlaroz ProjectexplorationworkbyResolutionNo.25/09onAugust26,2009. SubsequentEIAupdateshavebeen
presentedto
accurately
reflect
the
ongoing
exploration
program;
these
updates
do
not
require
Governmentapprovals. Additionalpermitsarenotrequired. LAChasalsoobtaineda licensefortheabstractionofgroundwatertomeetwatersupplyrequirementsfortheexplorationprogram.This license was granted by the provincial water authority (Direccion Provincial de RecursosHidricos)inJujuyandisingoodstanding,withallapplicabletariffspaidtodate.
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4ACCESSIBILITY,CLIMATE,LOCALRESOURCES,INFRASTRUCTUREANDPHYSIOGRAPHY
4.1Topography
Figure4.1showsatopographymapoftheCauchariandOlarozSalars. Thesesalarsarebounded
onthe
west
side
by
mountains
that
range
in
elevation
from
4600
m
to
4900
m
and
on
the
east
sidebymountainsthatalsorisetoanelevationof4900m. TheCauchariSalarformsanelongatednortheastsouthwest trending depression extending 55 km in a northsouth direction andapproximately6to10kminaneastwestdirection. TheOlarozSalarcoversanareaof30kmby10to15km. Theelevationofthefloorofthesalarsrangesfrom3910mto3950m.
ThevegetationofthesalarsistypicalforthealtiplanoandisdescribedinSection3.6.
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Figure4.1:Topography.
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4.2Access
The main access to the Olaroz and Cauchari Salars from San Salvador de Jujuy is via pavedNationalHighways9and52,asshown inFigure3.1. Themidpointbetweenthetwosalars islocated directly on Highway 52 (Marker KM 192). Paso Jama, a national border crossing
between
Chile
and
Argentina
(also
on
Highway
52)
is
100
km
west
of
the
Project.
These
highways carry significant truck traffic, transporting borate products from various salars innorthernArgentina. AccesstotheinterioroftheOlarozandCauchariSalarsispossiblethrougha gravel road, Highway 70, which skirts the west side of the salars and is used by borateproducers.
4.3PopulationCentres
Figure4.1showsthepopulationcentresaroundtheProjectarea. TheTownofSusques,45km
east of the Olaroz Salar, is the nearest population centre (Figure 4.1). Further east lies the
provincial
capital
of
San
Salvador
de
Jujuy
(not
shown)
and
the
settlement
of
Catua
to
thesouthwest. All three centres could provide labour for a brine operation. At the Salar de
Atacama, in Chile, the SociedaddeLitioused the local populationofPeine for the pondandpotassiumoperationsandbroughtinmoreexperiencedoperatorsfromAntofagasta.Aparallelsituation for a future operation at the Cauchari and Olaroz Salars would have local peopletrainedtoworkonthepondsystemandmorequalifiedpersonnelbroughtinfromSanSalvadorde Jujuy and Salta. Buses would provide transport to and from the camps for operationspersonnel.
4.4Climate
TheCauchari
and
Olaroz
Salars
are
within
aHigh
Altitude
Desert
Belt
which
is
characterized
by
extremesoftemperaturevaryingfrom 250Cto 300Cinthewinterandfrom150Cto200Cinthe summer (average: 50 C). Temperatures also vary widely between day and night.PrecipitationcomesmainlyintheformofrainduringthewetseasonfromDecemberthroughMarch. Figures 4.2 and 4.3 show monthly average precipitation records for Susques andOlacapato(locatedonthesouthsideofCauchariSalar).
Significant winds are encountered throughout the year that can occasionally result in sandstorms,asiscommoninmanydesertregionsoftheworld. Highwindsareapositivefactorfor
concentrating brines in evaporation ponds since evaporation rates are improved not only by
hightemperature,
but
also
by
wind
currents
that
remove
humidity
above
the
water
surface.
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Figure4.2: MonthlyaverageprecipitationforSusques. (From:Bianchi,etal.1992.)
Figure4.3: MonthlyaverageprecipitationforOlacapato (From:Bianchi,etal.1992.)
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4.5Infrastructure
The Cauchari and Olaroz Salars are situated favourably to the north of the InterAndesTransmission Line that links the Argentina power grid to Chile's northern electric grid. Thistransmission line should provide the necessary power to the operating wells, pond transfer
pumpsand
achemical
plant.
The
location
of
apond
system
and
apotential
chemical
plant
will
dictatethecapitalcostsofapowerlinetotheoperationalcentre.
Drillingconductedtodateinthesalarsindicatesthatsufficientfreshgroundwaterresourcesareavailabletomeetwatersupplyrequirementsforpotentialfuturebrineprocessingfacilities.
Demandforsurfacerightsintheregionislow. Acquisitionofsurfacerightsfortheconstructionof lithium processing facilities on the Cauchari or Olaroz Salars is expected to bestraightforward.
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5HISTORY
Historically, Rio Tinto has mined borates on the western side of Cauchari, at Yacimiento de
Borato
El
Porvenir.
Grupo
Minero
Los
Boros
S.A.
mines
a
few
thousand
tonnes
per
year
of
ulexite on the east side of the Olaroz Salar. No other mining activity (including lithiumexploration and production) has been recorded at the properties comprising the CauchariOlarozProject.
LACacquiredMiningandExplorationPermitsacrosstheCauchariandOlarozSalarsduring2009(seeSection3)and initiated lithiumexplorationactivitiesovertheseclaimsduring2009. LAChasnotpreparedpriormineralresourceorreservesestimatesfortheCauchariOlarozProject.
Orocobre Limited (Orocobre) owns mining claims in the Olaroz Salar adjacent to the LACOlaroz properties. Orocobre has prepared and published an inferred lithium and potassium
resourceestimate
for
its
project
area
during
2009
(see
Section
14
for
further
information).
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6GEOLOGICALANDHYDROLOGICALSETTING
6.1RegionalStructuralFeatures
Figure6.1showsthattherearetwoprimarystructuralfeaturesintheregion. Thefirstfeature
consists
of
sets
of
high
angle
north
south
trending
faults
causing
narrow
and
deep
horst
and
grabenbasins.ThesetectonicbasinshaveformedinthePunaplateauthroughnoncollisional,compressional, Mioceneage orogeny (Helvaci and Alonso, 2000). The basins occurpredominantly in the eastern andcentral sector of the Puna. They have been accumulationsitesfornumeroussalars,includingOlarozandCauchari.
The basin system is crossed and displaced by the second primary structural feature in theregion:northwestsoutheasttrending lineaments (Figure6.1).TheElToroLineamentand theAchibarca Lineament occur in the vicinity of the LAC Project. The Cauchari Basin (whichcontainstheOlarozandCauchariSalars) is locatednorthoftheElToroLineament. BetweentheElToroandAchibarcaLineaments,thebasinisdisplacedtothesoutheastandisknownas
the
Centenario
Basin.
South
of
the
Achibarca
Lineament,
the
basin
is
displacement
to
thenorthwest and is known as the Antofalla Basin. Collectively, these three displaced basin
segmentscontainalithiumbrinemine(HombreMuerto)andseverallithiumbrineexplorationprojects (Figure 6.2). Two lithium brine mines are also located between the same majorlineaments, within the Atacama Basin located approximately 150 km west of the CauchariBasin.
6.2RegionalGeology
TheregionalgeologyinthevicinityoftheOlarozandCauchariSalarsisshowninFigure6.1. Thebasementrock inthisarea iscomposedofLowerOrdovicianturbidites (shaleandsandstone)
intrudedby
Late
Ordovician
granitoids.
It
is
exposed
to
the
east,
west
and
south
of
the
two
salars,andgenerallyalongtheeasternboundaryofthePunaRegion.
ElsewhereinthePunaRegion,awiderangeofrocktypesuncomformablyoverliethebasementrock. Throughout most of the Chilean and ArgentinaChile border area of the region, thebasementrock isoverlainbyTertiaryQuaternaryvolcanics, including ignimbritictuffscoveredbyandesites(6to3millonyears)andrecentbasalticflows(0.8 0.1millonyears)ranginguptoseveraltensofmetresinthickness. Insomeareas,includingtothesouthandeastofthetwosalars, the basement rock is overlain by CretaceousTertiary continental and marinesedimentaryrockssuchasconglomerates,sandstonesandsiltstones,aswellastuffsandooliticlimestones.
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Thetectonicbasins inthe localarea includetheAtacama,Cauchari,CentenarioandAntofallaBasins, as shown in Figure 6.1. They are infilled with unconsolidated Miocene sedimentsequencesandintercalatedtuffs,andalsowithevaporitesincludinghalite,boratesandgypsum(Figures 6.1 and 6.2). Quaternary alluvial deposits, pediment sediments, mudflows andoccasionalsalinedepositsencroachintothebasinsfromthesides.
Figure6.1:RegionalgeologyinthevicinityoftheLACProject.(From:Peralta,E;2009)
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6.3LocalGeology
LocalgeologyinthevicinityoftheCauchariandOlarozSalarsisshowninFigure6.2. Subsurfacedepositsare laterallycontiguousbetween the twosalars and include interbeddedclasticandevaporiticrocksofthefollowingfivemainfacies:
Carbonate;
Borax;
Sulphate;
Clay;and
Sodiumchloride.
Eachofthesearedescribed inthesubsectionsbelow. Onthesurface,thesalarsarepartiallyseparatedbyanalluvialfanformedbytheOlaRiver.Thepavedroadthat linksArgentinaandChile also crosses the salars along this boundary (Photo 6.1). Two alluvial fans are alsoencroachingonthesouthendoftheCauchariSalar. Theencroachmentofthesecoarseclasticsedimentsindicatesthattherecentperiodiswetrelativetomuchoftheprevioushistoryofthesalars.
Photo6.1:BoundarybetweenCauchariandOlarozSalars.
Cauchari Salar
Olaroz Salar
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6.3.1CarbonateFacies
This unit outcrops intermittently along the west side of the Cauchari Salar, and is relativelyscarce in Olaroz (Figure 6.2). It comprises brown and buff clays interlayered with dirtytravertines or sands with calcareous cement produced by hydrothermal activity (calcareous
sinters").
This
unit
tends
to
be
exposed
in
high
relief
areas
(Photo
6.2).
Ulexite
(NaCaB5O6(OH)6.5H2O) concretions, with or without gypsum (CaSO4
.2H2O) and mirabilite(S2O4
.10H2O),aresometimesassociatedwiththecarbonatefacies.
Photo6.2:Carbonatefacies(sinter)inthewesternmarginofCauchariSalar.
6.3.2BoraxFacies
These facies consist of black and brown clays with borax mineralization (Photo 6.3). In theCauchariSalar,thisunitisexposedinadiscontinuousstripalongthewesternedgeofthesalar,stratigraphicallybelowthecarbonatefacies.InOlaroz,theboraxfaciesoccuralongtheeasternborder of the salar and in the central and north area (Figure 6.2). When evaporitic minerals(predominantlyulexite,withlocaltransitiontoboraxatdepth)occurinthisunit,theproportionofclayandsilttendstodecrease,toanestimatedminimumof30%to40%. Theboraxmineralswithinthisunithavebeenheavilyexploitedformanyyears.
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Photo6.3:BoraxfaciesinwesternCauchari,AngelinaBoraxMine.
6.3.3SulphateFacies
Thesulphate
facies
are
composed
of
fine
clastic
sediments,
usually
brown
clays
inter
layered
withmirabilite(S2O4.10H2O),gypsum(CaSO4
.2H2O)andsodaash(Na2CO3). Thisunitgenerallyoccurs below the borax facies. The sulphate facies are exposed in the centralsouth area ofCauchari and in the northernareaofOlaroz. The sulphate facies in Cauchari are significantlyricher in soda ash than those in Olaroz, while the latter tends to be relatively enriched inmirabilite.
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Figure6.2:LocalGeologyoftheCauchariandOlarozSalars(From:Peralta,E;2009)
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6.3.4ClayFacies
These faciesoccuracrossmostof thesurfaceof theCauchariSalarand isolatedzones in thesouthernareaoftheOlarozSalar(Photo6.4). Theyarecomposedofpredominantlybrowntoreddishclays(dominantlyillite;Cravero2009aand2009b)interlayeredandsometimesmixed
withthin
sand
or
silt
layers.
This
unit
is
always
impregnated
with
various
evaporites,
including
thefollowing:
InsouthernCauchari gypsum(CaSO4.2H2O)withsomeglaserite(K3Na(SO4)2);
InsouthcentralCauchari halite(NaCl)andgypsum(CaSO4.2H2O);
InnorthcentralCauchari halite(NaCl);and
In the boundary area between Cauchari and Olaroz ulexite, sulphates (predominantlymirabilite)andalkalinecarbonates(predominantlysodaash).
Despite the large surface outcrop of the clay facies, drilling data indicate that they have amaximumthicknessof30mandatypicalthicknessof10morless.
Photo6.4:ClayfaciesintheCauchariSalar.
6.3.5SodiumChlorideFacies
Thesefacies(Photo6.5)typicallyoccuratthesurfaceofmanysalars,andarecharacterizedbyapolygonalcracked hard crust, with a composition dominated by halite (NaCl). They are thedominantfaciesonthesurfaceoftheOlarozSalar,butarealmostnonexistentonthesurfaceoftheCauchari.ThesurfaceoccurrenceofthesodiumchloridefaciesontheOlarozSalar isthin
(between
5
cm
and
25
cm).
Drilling
data
indicate
that
this
unit
also
occurs
at
depth
in
the
CauchariSalarandrangesuptoseveraltensofmetresinthickness. Thesubstantialoccurrenceofthisunitatdepth intheCauchari indicatesthatthissalarhascompletedageologicalcycleandisintheprocessofbeingburiedbyaccumulationofclayfacies.
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Photo6.5:SodiumChloridefaciesintheOlarozSalar.6.4VerticalGeologicalSectionA
conceptual
stratigraphic
section
and
column
were
developed
for
the
salars,
based
on
all
Project borehole results available to date. The available borehole logs, which extend from
southernOlaroztocentralCauchari, indicatesomevariability instratigraphicdetailsbetween
locations.Theyalsoindicate,however,thatsomevalidandusefulstratigraphicgeneralizations
canbemade.TheconceptualsectionisshowninFigure6.3andthecolumnisshowninFigure
6.4.TheverticalzonationoftheCauchariandOlarozSalarscanbesimplified intothreemain
sequences,whicharedescribedinthefollowingsections.
Figure6.3: Conceptualsection of the Cauchariand OlarozSalars showing threemain sequences: the Upper Mixed Sequence, the Thin Bedded
Se uenceandtheCoarseBeddedSe uence.
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Figure6.4: ConceptualstratigraphiccolumnoftheCauchariandOlarozSalars
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6.4.1UpperMixedSequence
This sequence (Photo 6.6) occurs at the surface and includes relatively thin layers of all thefaciesdescribed insection6.3,andalluvium.Thisunittypicallyranges inthicknessfrom20to40macrossthesalars,however,geophysicalanddrillingdataindicatethatitcanrangeasthick
as80
m
(in
Olaroz)
and
as
thin
as
10
m
(in
northern
Cauchari).
XRD
analysis
of
the
clays
in
this
sequence (Cravero, 2009a and 2009b) shows that they are predominantly illite with minorkaolinite, smectite and chlorite. Glass shards and magnetite are also present, indicating thevolcanicnatureofthesourcerock.
Photo6.6:UpperMixedSequenceclaywithboraxmineralization.
DrillingandshallowtestpitdatashowthatsomelayersoccurintheUMSwhicharesufficientlypermeabletobeconsideredaquifers. However,these layersarerelativelythin,ranginguptofourmetres inthicknessbuttypically lessthanonemetre. These layersareconsideredtobecoarsercomponentsoftheclayfaciesmixedwithsandorsilt.
6.4.2ThinBeddedSequence
This sequence (Photo 6.7) encompasses thinly bedded clay facies, evaporite facies (mostlyhaliteandgypsum),silt,andsand.Theindividualbedsvaryinthicknessfromafewcentimetrestoafewmetres.ThissequencehasalargercomponentofcoarsegrainsizedmaterialthantheUMS,whichismostlyclay.Theevaporitefaciesarecomposedmainlyofhaliteand,occasionallyhalite with gypsum, in layers ranging from of a few centimetres to few metres in thickness.Drilling and geophysical data show that the TBS is typically between 50 and 60 m thick. Itrangesup tomore than250m thick inOlaroz; themaximum thicknessobserved inCauchariwas50m,inthenorthareaofthesalar.
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Photo6.7:ThinBeddedSequenceshowingalternatingsandandhalitelayers.
Drilling data show that the TBS hosts permeable brinesaturated units that are continuous(severalmetresthick)separatedonlybynarrowclayunits(afewmetresthick).
6.4.3CoarseBeddedSequence
Todate,theCBShasbeenobservedonlyintheCauchariSalar.Itconsistsofinterlayeredsandand evaporite (mostly halite) layers, several tens of metres thick. The upper level of thesequence ischaracterizedbyathick,compact,dry layerofhaliteranging from10to30m inthickness,followedbyacoarsesandstonelayer. Belowthesetwolayers,thesequenceincludessandysedimentsandporous,crackledhaliteintercalations(Photo6.8).Thetwodominantunitsinthissequencehavethefollowingcharacteristics:
SanddominantUnit: Containssignificantlayersfrom50to100mthickofslightlycemented
aeolian(perfectly
rounded)
sand,
alternating
with
thin
layers
of
halite
(Photo
6.8).
This
unit
includes occasional thin clay lenses (0.2 to 2 m thick). The sandy material showshomogeneous grain size andmineralogical composition with wellrounded particles 1 to 3mm in diameter, which are dominated by silica glass, quartz, feldspar, mafic minerals(pyroxene,biotite and amphibole) and a striking abundance of magnetite. Invariably, thisunitcontainsabundanthalitecrystals,gypsumand occasionalborates (ulexite andnarrowbeds of tinkal). This unit can be considered an aquifer because of the predominance ofcoarseparticlesizesandassociatedhighpermeability.
Sand
Halite
Halite
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Photo6.8: SanddominantUnit.Grainsizeanalysisshowsthatthismaterial ispredominantlysandwith d50 around 0.21mm; inspection under microscope and hand lens shows that thegrainsareverywellroundedquartz,magnetiteandmaficminerals.
Evaporitedominant
Unit:
This
unit
is
composed
of
halite,
sometimes
massive,
but
generally
formingasinteredspongeofhalitecrystals,withhighpermeabilityandfrequentcavitiesduetocrystalcorrosion (Photo6.9).Theevaporite layersalternatewiththesandy layers,bothranging from 15 m to 30m in thickness,althoughacontinuous 100 m layerofhalitewasobservedatoneboreholelocation(DD3).Thisunitoccasionallyincludesthinlensesofclays(between 0.25 m and 4 m). In southern and central Cauchari, carbonate facies were alsoobservedinthisunit,ranginguptosixmetresinthicknessandwithkarsticsolutioncavernsandholesfilledwithloosesand.
Photo
6.9:
Porous
Halite
in
the
Coarse
Bedded
Sequence.
ThebottomoftheCBSwasnotreachedintheboreholesadvancedtodate. Geophysicaldatasuggestthatthissequencecontinuestothebottomofthesalar,estimatedtobebetween300and600mdepth,dependingonthebasinsector.
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6.5Hydrogeology
6.5.1Surfacewater
The OlarozCauchari hydrographic basin is an elongated depression with a length of
approximately
150
km
in
a
north
south
direction
and
a
width
of
30
to
40
km
in
an
east
west
direction. Thebasincoversapproximately4500km2asshowninFigure6.5.
SurfacewaterinflowalongtheperimeterofthehydrographicbasinoccursprimarilyfromRiosElRosario,OlaandTocomar.RioRosario,which is locallycalledRioElToro,originates in theverynorthernpartoftheOlarozCauchariwatershedatanelevationof4500m. Theriverflowssouthsoutheastfor55kmpastthevillageofElTorobeforeitentersintotheOlarozSalar.Flowwasmeasuredatapproximately200L/sjustabovetheHighway74bridgecrossing(some5kmsoutheastofthevillageofElToro)atanelevationof4010monNovember7,2009attheendofthedryseason(Photo6.10). RioRosariowasdryonthatsamedate,atalocationsome15kmfurthersouthintoSalardeOlaroz,atanelevationofaround3940m.
RioOla,whichislocallycalledRioLama,originatesatanelevationofaround4500mjustsouthofCerroBayoAchibarcaandflowseastfor20km.ItentersthesalarsontopofthelargealluvialfanthatseparatesOlarozfromCaucharionthewesternflankofthebasin. InAchibarcawhereRioOlaflowsimmediatelyadjacenttoHighway52,flowwasestimatedatapproximately5L/sonNovember7,2009(Photo6.11).
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Figure6.5:CauchariOlarozwatershed.
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Photo6.10: RioRosariojustabovetheHighway74bridgecrossing.
Photo6.11: RioOlaatAchibarca.
RioTocomar,whichislocallycalledRioOlapacato,originatessome10kmwestofAltoChorilloat an elevation of around 4 360 m. The river flows west for approximately 30 km before itenterstheCauchariSalarfromthesoutheast. Flowwasmeasuredat30L/satalocationeightkilometreswestofAltoTocomaratanelevationof4210monNovember6,2009(Photo6.12).RioTocomarwasdryinthevillagesofOlacapatoandCaucharionthatsamedate.
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Photo6.12: RioTocomareightkilometresbelowAltoTocomar.
No other surface water features were observed along the perimeter of the OlarozCauchari
watershedduring
November
2009,
at
the
end
of
the
dry
season.
SurfacewateralsooccursinthecentralsouthernpartoftheCauchariSalarsome15kmnorthof the village of Cauchari, where a number of springs discharge on the surface of the salar.Discharge from these springs is naturally channeled into a single stream and flows north forseveralkilometres. Flowwasmeasuredatapproximately10L/sonNovember8,2009.
ThereisnosurfacewateroutflowfromtheOlarozCauchariSalars.
6.5.2 Groundwater
Groundwater flow occurs primarily in the unconsolidated and semiconsolidated basin fillsediments
of
the
Olaroz
Cauchari
basin.
Groundwater
flow
is
generally
towards
the
central
axis
ofeachsalar. ThelargealluvialfanoftheRioOlacreatesagroundwaterdivide(freshwater)betweenthetwosalars.
Groundwater elevation measurements were carried out in November and December 2009across Olaroz and Cauchari in a number of observation wells and open boreholes that wereinstalledaspartofthe2009LACdrillingprogram.Thesemeasurementsindicatethatconfiningconditionsoccuroverlargepartsofbothsalars. ArtesianflowconditionsareencounteredinatleastoneholeinOlaroz. Depthtogroundwaterrangesfromzero(groundsurface)toabout10macrossthetwosalars.
Groundwater
along
the
edges
of
the
OlarozCauchari
basin
is
relatively
fresh
as
a
result
of
recent recharge. Salinity of the groundwater increases rapidly towards the central areas ineachsalar. The locationof the freshwater/brine interfacewillbedefinedduring the2010programthroughacombinationofdrillingandgeophysicalmethods.
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6.5.3 Waterbalance
Recharge
Groundwaterrechargetakesplaceasaresultof infiltrationofprecipitationalongthemargins
of
the
salar
during
the
wet
season
from
December
through
March
each
year.
Precipitation
records for Olacapata in the southern part of Cauchari between 1950 and 1990 (Figure 4.3)showthatthetotal rainfall isapproximatelysevencentimetresperyear. It isestimatedthatbetween5%and20%ofthisrainfallultimatelybecomesrechargetogroundwater.
SurfacewaterflowlossesobservedinRiosRosario,OlaandTocomararepartlyduetorechargetothegroundwatersystem.
Discharge
Groundwater discharge takes place through evaporation, evapotranspiration and dischargefrom springs. Evaporation takes place from the central and marginal areas of the salar and
evapotranspirationalong
the
margins
of
salars
where
vegetation
occurs.
Spring discharge is observed in southern Cauchari and was estimated at around 10 L/s inNovember2009attheendofthedryseason.
TherearenoknowngroundwateroutflowsfromtheOlarozCaucharibasinandtodatethereisnoknowndischargethroughgroundwaterpumping.
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7DEPOSITTYPES
TheCauchariandOlarozSalarsareclassifiedasSilverPeak,Nevadatypeterrigenoussalars.
Silver
Peak,
Nevada
in
the
USA
was
the
first
lithium
bearing
brine
deposit
in
the
world
to
be
exploited. These deposits are characterized by restricted basins within deep structuraldepressions infilledwithsedimentsdifferentiatedas interbeddedunitsofclays,salt (halite),sandsandgravels. Withinthesesedimentsalithiumbearingaquiferhasdevelopedduringaridclimaticperiods.Onthesurface,theyarepresentlycoveredbycarbonate,borax,sulphate,clay,andsodiumchloridefacies. Section6hereinprovidesadetaileddescriptionofthegeologyoftheOlarozandCauchariSalars.
Cauchari and Olaroz have relatively high sulphate contents and therefore both salars can befurtherclassifiedassulphatetypebrinedeposits. Sections8and12providedetailedfurtherdiscussionofthechemistryofCauchariandOlaroz.
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8MINERALIZATION
ThebrinesfromCauchariaresolutionssaturatedinsodiumchloridewithtotaldissolvedsolids(TDS)ontheorderof27%(324to335g/L)andanaveragedensityofabout1.215g/cm3.Theother components present in these brines, which constitute a complex aqueous system and
existalso
in
brines
of
other
salars
in
Argentina,
Bolivia
and
Chile,
are
the
following:
K,
Li,
Mg,
Ca,
SO4,HCO3,andBasboratesandfreeH3BO3.
As inothernaturalbrines in the region,suchas thoseof theSalardeAtacamaandSalardelHombreMuerto,thehighercontentoftheionsCl,SO4
=,K+,Mg++,Na+atCauchari,compared
withtheotherprimary ions(Ca,Li,B)allowsasimplificationforthestudyofcrystallizationofsalts during evaporation. The known phase diagram (Janecke projection) of the aqueousquinarysystem(Na+,K+,Mg++,SO4
=,Cl)at25Candsaturatedinsodiumchloride(equilibriumdatafromthetechnicalliterature)canbeused.However,inordertofitthisphasediagramwiththeimportantpresenceoflithiuminthebrines,theJaneckeprojectionofMgLiSO4K2inmol%is used. The Cauchari brine composition is represented in this diagram in Section 15, where
thereis
also
adiscussion
of
results
from
simulated
evaporation
performed
by
the
University
of
Antofagasta.
Table 8.1 shows a comparison of the average Cauchari brine composition with other naturalbrinesfromSilverPeak(USA),SalardeAtacama(Chile),SalardelHombreMuerto(Argentina),SalardeRincon(Argentina),ZhabuyeSaltLake(Tibet)andSalardeUyuni(Bolivia).
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