Vancouver, BC, November 23, 2023. Origen Resources Inc. (the “Company” or “Origen”) (CSE:ORGN; FSE:4VXA) Origen is pleased to announce results…
Vancouver, BC, September 28, 2023. Origen Resources Inc. (the “Company” or “Origen”) (CSE:ORGN; FSE:4VXA) is pleased to announce that geophysical testing has shown that a conductive layer up to 482 metres deep is found beneath a thin layer of travertine at Los Sapitos. The conductive layer rests on a resistive basement with initial indications the salar is a fault tilted basin, consistent with Origen’s exploration model. This layer will be targeted by Origen’s first-phase drilling scheduled for early 2024.
Origen Resources is also pleased to announce it has arranged a private placement (the “Private Placement”) of up to 4,500,000 flow-through units at $0.10 per unit with each unit consisting of one flow-through share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.15 cents per share for a period of 18 months from the closing date.
The levels of conductivity recorded by vertical electrical sounding on the property are consistent with those from a brine-hosting aquifer as predicted by Origen’s exploration model. Lithium-rich brines are highly conductive, and these measurements are an important diagnostic tool.
Gary Schellenberg stated “The latest results indicate that there is sufficient depth for a significant aquifer at Los Sapitos. The Los Sapitos basin continues to surpass our expectations”.
Interpreted section through Los Sapitos basin based on results of Vertical Electrical Sounding. Average resistivity across the modeled units is shown in red in Ohm.m
All three survey points collected during the Vertical Electrical Sounding survey have identified 4 unique layers: 1. a conductive superficial layer of conductive alluvial sand of around 1-2 metres thick, 2. A resistive layer of up to 7 metres thick of sand and gravel, 3. a distinct conductive layer of between 88 and 469 metres thick 4. A distinct resistive Paleozoic basement of possible granitic lithology. Across the Los Sapitos basin thin layers of alluvial clays, gravels and travertine have covered a significant conductive basin. Sampling from earlier this year has shown that elevated lithium is found below the travertine on the part of the conductive layer that has been exposed.
Conhidro S.R.L of Catamarca was contracted by Arex Mining on behalf of Origen to complete a geophysical survey over the Los Sapitos salar and basin.
In July 2023 Conhidro field teams carried out 3 vertical electrical sounding surveys at locations shown in figure 1 and table 1. The aim of the study was to determine the thickness of the permeable sediments, depth of the hydrogeological basement and the structural conditions of the subsoil. The study was carried out with a CGEG CO Ltd. DUK-2A, auto-compensating multi-electrode resistivity survey system. Stainless steel current electrodes and copper potential electrodes were used in a saturated solution of copper sulfate. 1 mm wide steel/copper power cables 1 metre in length were used.
The power source for the survey was a voltage regulator amplifier fed with 220 V, which reaches a maximum value of 850 volts. The survey was carried out by the VES method (vertical electrical sounding), with a tetrapolar array in a Schlumberger arrangement with geometric constant K = π.((AM.AN)/MN).
The lengths between current electrodes were variable, up to maximum distances of 2000 metres. The separations between the potential electrodes, MN, varied between 1 and 200 metres. The field curve was plotted on bilogarithmic paper where the abscissa corresponds to the values of OA (in metres) and the ordinate to apparent resistivity in Ohm.m (ρa). Interpretation of the data was completed with computer programs.
As noted above, up to 4,500,000 flow-through units at $0.10 per unit are proposed, with each unit consisting of one flow-through share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.15 cents per share for a period of 18 months from the closing date.
Insiders of the Company are expected to participate in the Private Placement. This anticipated participation by insiders in the Private Placement constitutes a related-party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. However, the Company considers such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the flow-through units expected to be subscribed for by the insiders and the consideration for the units paid by such insiders will not exceed 25 per cent of the Company’s market capitalization.
Gary Schellenberg noted “these flow-thru funds will make a meaningful impact on advancing our Newfoundland pegmatite exploration this field season, with drilling planned in Argentina on Los Sapitos in February/March, late summer in the southern hemisphere.”
About Origen’s Lithium history
The Origen team has been exploring for Lithium since 2002, making major discoveries of both spodumene, and lithium in brines. The recent market-driven phase of lithium discoveries have represented those with the highest grades and most obvious surface expressions. As the lithium technology matures and the demand for lithium grows, exploration will be driven to those places where lithium has not been historically seen. Origen has been applying the experience gained through discovery to create advanced exploration models with the aim of making original green-fields discoveries.
Origen began exploration for lithium brines in Argentina with the thesis that the lithium found in the “Lithium Triangle” – an area located on borders of Chile, Argentina and Bolivia that is estimated to host 51% of the world’s total lithium – extends south-wards in Argentina along an emerging trend that terminates in Argentina’s San Juan Province. In addition, Origen realized that while easily visible lithium discoveries has been the pattern of success in the Lithium Triangle, seeking significant resources with more subtle surface exposure was a viable exploration model.
This approach has allowed for the discovery of Maricungas and Tres Quebradas far to the south of the Lithium triangle. Tres Quebradas was sold in 2020 for $782 million CAD, and is about to enter commercial production.
Origen previously recognized that the geology of the mining friendly northern San Juan was similar to that of within the lithium belts in the north of the country. Guided by this exploration model Origen was able to stake a district sized package around a mostly-buried salar. Preliminary exploration in 2021 was met with immediate success: surprisingly high grades of lithium in brines at surface in the main salar area of Los Sapitos, with one sample returning 391 mg/L. This discovery was a vindication of the exploration model.
Origen believes that the style of mineralization transitions from the mature salars of the lithium triangle with an obvious visible surface expression to a mostly-buried, sediment-rich aquifer similar to those found in the Clayton Valley, Thacker Pass and elsewhere.
Origen has since expanded its land holdings with a total of 344 km2 acquired over several prospective basins in northern San Juan Province.
Origen is fully focused on its 100% interest in the Los Sapitos Lithium project in Argentina and its 100% interest in the 33,000 ha Newfoundland Lithium projects, and also a 100% interest in the 26,771 ha LGM and the 3,971 ha Wishbone projects in the mineral rich Golden Triangle of British Columbia, along with a property portfolio of four 100% owned precious and base metal projects in southern British Columbia.
John Harrop, P.Geo., a Qualified Person as that term is defined in NI 43-101 has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release.
On behalf of Origen,
For further information, please contact Gary Schellenberg, Chief Executive Officer, at 604-681-0221.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Certain of the statements made and information contained herein may constitute “forward-looking information.” In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.