Blue Sky Lithium is a lithium exploration company with the rights to earn 100% interests in projects located in the world class Lithium Triangle region in Argentina.

Projects located in the Hombre Muerto Salt flat, adjacent to Galaxy Resources (mkt cap; A$1.3bn) and FMC Lithium Corp. (mkt cap; ~A$15bn).

The Hombre Muerto Salt Flat (salar) is arguably the most productive lithium brine basin in Argentina. Hombre Muerto brines proven to be low in impurities – FMC preferred salar and only operation (Fenix) has been in production for over 20 years.

Targeting fast tracking to production of Lithium Carbonate similar to Argosy Minerals Ltd (ASX:AGY) model.

Candelas

  • Encompasses the 15km x 3-4km Los Patos delta
  • Extensive exploration potential, adjacent to Galaxy’s Sal de Vida project
  • Very shallow targets below surficial alluvial cover
  • Sufficient area for evaporation ponds, processing infrastructure & great fresh, process water
  • Rio Los Patos accounts for ~79% of incoming waters into the salar which drain likely Li source rocks from the Cerro Galan volcano (associated fumaroles noted in the delta)
  • Rich setting for lithium brine development – ground waters sourcing volcanic rocks, hydrothermal activity, a closed basin, arid climate and a faulted environment
  • Galaxy have stated that the basin could be at least 300m deep in the eastern sub-basin
  • GXY’s closest drilling to Candelas indicates substantial volumes of brine hosted by coarse sands and gravels; perfect permeable hosts
  • The delta sits just 30 to 60m above the salar RL
  • Palaeo salar could exist below this surficial alluvial cover OR brines may have migrated into the coarse sands & gravels at depth

Catalina

  • Covers ~2.4km2 of salar & partly shallowly alluvial covered salar in the western part of the basin
  • Further potential in fault controlled aquifers
  • Good exploration potential – adjacent to FMC resource grades of 680 mg/l Li
  • Deepest part of the basin interpreted to lie along the Western margin, potentially up to 900m deep
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Argentina

  • In 2015 Mauricio Macri was elected President and has championed the opening up of the Argentinian economy to international investment
  • The fixed exchange rate between the US$ and Argentinian Peso has been dropped and capital controls are no longer in place
  • The majority of export duties and trade controls have been removed. Consistent Royalty regime for all minerals across most of the country introduced in 2017
  • FMC, a US based company, has been successfully producing lithium carbonate and lithium hydroxide in Argentina for more than 20 years
  • Results from the recent 2017 regional elections have shown that the electorate continues to support Macri’s party and its progressive government policies

Lithium Market

  • The lithium price has risen significantly in the past two years with unprecedented prices exceeding >US$20,000/t (spot) and >US$13,000/t (contract)
  • Price rise primarily due to the demand for lithium batteries in electric vehicles
  • Lithium demand is expected to further increase which should place further upward pressure on prices
  • Source: Orocobre Ltd
  • Li brine producers are the lowest cost producers & are economic at US$5,000/t
  • The Tesla Semi planned for 2019 requires 16 times the amount of lithium than that for a 50kWh electric car
  • The number of electric buses will triple within seven years, all of them in China (Bloomberg)
  • “Contemporary Amperex Technology Ltd (CATL) is close to choosing one of three sites in the European Union for its first overseas plant” (Bloomberg) – CATL is the largest producer of lithium ion batteries in the Chinese market
  • End users continue to scramble for access to lithium, eg; POSCO’s signing a DSO offtake & funding agreement with Pilbara Minerals