Orocobre Limited - Cauchari Definitive Feasibility Study Commences

BRISBANE, Australia, Dec. 13, 2018 /PRNewswire/ -- Orocobre Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the Company") is pleased to announce that Advantage Lithium Corp. ("Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF) has engaged engineering consultants GHD, Chile S.A. to commence early engineering geared towards the completion of a Definitive Feasibility Study (DFS) on its flagship Cauchari Project in Jujuy, Argentina. The DFS is expected to be completed by 1H CY19.

Advantage Lithium hold 75% of the Cauchari JV. Orocobre owns 33.5% of Advantage Lithium's issued capital and 25% directly in the joint venture.

The appointment of GHD follows encouraging Preliminary Economic Assessment (PEA) outcomes and continued positive results from the Phase III resource conversion program. The DFS will provide an appropriate engineering design to produce a Class 3 cost estimate consistent with American Association of Cost Engineers (AACE) principles to build a standalone lithium plant producing 20 thousand tonnes per annum (Ktpa) of Lithium Carbonate Equivalent. A report on this work will be prepared in accordance with NI43-101 standards of disclosure and is scheduled for completion in Q4 FY19.

Orocobre Managing Director & CEO Richard Seville commented: "I am very pleased that the Advantage team are commencing the Cauchari Definitive Feasibility Study having achieved excellent results from recent work. The Cauchari Project is quickly becoming one of the most advanced lithium brine development projects in South America, with similar chemistry to our nearby Olaroz Lithium Facility."

The commencement of early engineering marks another key milestone for the Cauchari Project's development following positive PEA results. The Phase III drilling program is nearing completion, culminating in 30-day pumping tests on main production targets in the NW Sector and the SE Sector deep sand units. These results will feed into an updated resource estimate which is targeted in Q3 FY19 and expected to bring Cauchari's resources into the Measured and Indicated categories.

Advantage Lithium have applied a rigorous process to identify and select suitable partners to assist in the development of its Cauchari project. In that process, GHD were selected from other pre-qualified global engineering firms as the best fit for Cauchari development plans, to complete the early engineering and establish a project execution plan to achieve first production in Q3 CY21 and full post ramp-up production in 2023.

Key Advantage Lithium Project Team Additions:

With the Cauchari Project advancing to the DFS and project execution, Advantage Lithium has engaged the following key people to the project core management team in Argentina:

• Carolina Carmona has joined the project team as Environmental Services Manager to manage the project permitting processes and provide oversight to the project Environmental Impact Assessment (EIA) and other submissions, which are well advanced. She will also supervise onsite environmental management activities.
  
  Carolina has extensive experience in the north of Argentina as a consultant, as well as working for various mining companies and government agencies.
  
  
• Alex Caqueo has joined the project team as Senior Project Scheduler to coordinate all aspects of the project development plan and execution schedule. Alex has an engineering background and extensive experience in project management working for Enthalpy, Chile on various projects including for Codelco, the major Chilean copper company.
  
  
• Dave Cross has joined as CFO replacing Lindsay Murray. Dave is a CPA, CGA and has over 21 years of accounting experience. In the past Dave, has worked on and has extensive knowledge of complex accounting and reporting formats in both the oil and gas and specialty minerals sectors.
  
  
• Carlos Perez joins the Company as site manager to oversee site and camp activities as the project moves towards production. Carlos has extensive experience managing mining project activities in the north of Argentina.

About GHD

GHD is one of the world's leading professional services companies operating in the global markets of energy and resources, water, environment, property and buildings, and transportation.

Established over ninety years ago and privately owned by its employees, GHD delivers engineering, architecture, environmental and construction services to public and private sector clients across five continents and the Pacific region. Committed to creating lasting community benefit, GHD connects the knowledge, skill and experience of nearly 10,000 diverse people with innovative practices, technical capabilities and robust systems.

For more information please contact:

Andrew Barber
Investor Relations Manager  
Orocobre Limited 
T: +61 7 3871 3985 
M:+61 418 783 701 
E: [email protected]
W: www.orocobre.com.au

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Qualified Person's/Competent Person's Statement

The information in this report that relates to exploration reporting at the Cauchari JV project has been prepared by Mr. Murray Brooker. Murray Brooker is a geologist and hydrogeologist and is a Member of the Australian Institute of Geoscientists. Mr. Brooker is an employee of Hydrominex Geoscience Pty Ltd and is independent of Orocobre. Murray has sufficient relevant experience to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. He is also a "Qualified Person" as defined in NI 43-101. Murray Brooker consents to the inclusion in this announcement of this information in the form and context in which it appears.

About Orocobre Limited
Orocobre Limited (Orocobre) is a dynamic global lithium carbonate supplier and an established producer of boron.

Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSE: ORL). Orocobre's operations include its Olaroz Lithium Facility in Northern Argentina, Borax Argentina, an established Argentine boron minerals and refined chemicals producer and a 33.5% interest in Advantage Lithium. For further information, please visit www.orocobre.com

SOURCE Orocobre Limited

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