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Liberty One Lithium to accelerate activities at its North Paradox property in Utah

Last updated: 15:02 15 Dec 2017 EST, First published: 10:02 15 Dec 2017 EST

Tesla factory
"We're in a great location featuring excellent access and infrastructure within proximity to the Tesla Gigafactory"

Liberty One Lithium Corp (CVE:LBY) is to accelerate activities at its flagship North Paradox property in Grand County, Utah.

The property adds a second string to Liberty One's bow, augmenting its joint venture with Millennial Lithium on the Pocitos project in Argentina.

"This is a business of timing and opportunity, and insofar as we have advanced all payments to finance our efforts in Argentina, we are in the enviable cash position of having approximately $10 million in working capital in hand,” explained Liberty One's chief executive officer, Brad Nichol.

“Because of its significant upside potential, our US-based project was determined to require a different strategy from our joint venture approach in Argentina and is a fitting opportunity to begin our long-awaited exploration of this promising potential lithium prospect. We're in a great location featuring excellent access and infrastructure within proximity to the Tesla Gigafactory, which could offer distinct economic advantages relative to similar operations in Nevada," he added.

Meanwhile, in Argentina, early reports from the company's operating partners have yet to define a commercial prospect.

As previously reported, the company commenced drilling in late October 2017. To-date, drill results from the first two holes show lithium-enriched brines are not present beneath the sedimentation of the parts of the southern basin where drilling is currently taking place. The third hole is currently being drilled 9km north of the second hole. Results are not yet available at this time.

The Pocitos West property has proximity to,  and is on trend with, other known deposits and reports of surface lithium anomalies, but there has been no actual historic drilling beyond near-surface sampling.

The initial geophysics undertaken at Pocitos West identified a thick, contiguous low-resistivity horizon throughout the property. As shown by drilling for the southern two-thirds of the property it appears that this conductive material was not brine-enriched sediments, but instead a clay-dominated sequence, which offers less resistance to electrical current than sand or hard rock basement materials, and has little-to-no-potential to host brine.

"The Pocitos West property is extremely large, and the third hole still holds possibilities," Nichol believes.

"In any case, an evaluation of the final results will take only days to complete, and we will be making some practical decisions for our next steps at Pocitos shortly. It's been a very positive learning experience so far, and we have every intention of taking what we have learned here and applying it in Utah and elsewhere.

“We have the desire, intent and financial ability to look at options across Argentina and Chile if we assess the Pocitos project as non-viable. The lithium story is as compelling now as when we started, its outlook remains healthy with lots of growth projected and we now have a much more experienced team with access to a number of potential projects within the celebrated Lithium Triangle and beyond. These are all highly positive elements that will allow the company to ultimately deliver shareholder value and make 2018 a year to look forward to," Nichol said.

Shares in Liberty One closed 5.8% higher at C$1.27 on Friday.

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