The Cruz property is located within South America’s Lithium Triangle (northern Chile, northwestern Argentina and southwest Bolivia), where over half of the earth’s identified resources of lithium are found. 1 This property is in the Pocitos Salar basin in Salta Province, Argentina and encompasses 2,500 hectares (Figures 1-3).
The asset is located in the same structural basin and 11 kms south of Ady Resources’ Salar del Rincón property, the only lithium operation in Salta Province (Figure 3). Both ADY Resources Limited (Enirgi Group Corporation) and Southern Lithium’s properties lie along the northerly-trending structural belt that hosts the important lithium resources of the region and is adjacent to the major crossing lineament that is thought to have given rise to the hydrothermal activity that supplied lithium to both closed Salar basins (Figure 2).
The property is located along the major fault and volcano chain that defines the southern limit of the Rincon Basin, where ADY Resources Limited is extracting lithium brine and the northern limit of the Pocitos basin, where the Cruz property is located (Figure 3).
Additional information on Ady Resources
The Cruz asset benefits from the existence of adequate infrastructure, allowing exploration and potential production activity to occur without any significant bottlenecks. A Provincial road and railroad bisect the property and local area roads connect to the Provincial highway system that connects the basin to the major deep water Port of Antofagasta located across the border in Chile. Additionally, a railroad station and town are located near the asset.
The 60-kilometer long Pocitos Salar basin was drill tested in 1979 with a shallow 12-hole program by an Argentinean government agency called “Direccion General de Fabricaciones Militares” (Figure 4). The hole that produced the best results, Hole P8 is only one kilometer southeast of the Cruz property boundary and averaged 417 parts per million; please note that these results are considered historical and cannot be relied upon under NI 43-101 standards.