Orocobre Limited - Cauchari Drilling Update

BRISBANE, Australia, Nov. 27, 2018 /PRNewswire/ -- Orocobre Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the Company") provides the following general update on activities at the Cauchari JV property located in Jujuy Province, Argentina.

The exploration program is being managed by JV partner Advantage Lithium Corp. ("Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF) who hold 75% of Cauchari. Orocobre owns 33.5% of Advantage Lithium's issued capital and 25% directly in the joint venture.

Highlights:

• The Phase III infill drilling and resource conversion program is close to completion in the NW Sector and continues in the deep sand unit in the SE Sector. The program is currently on track to upgrade the current Inferred Resource to Measured and Indicated Resources by early 2019
• Drilling of holes CAU22, CAU25, CAU27 and CAU19 recently completed in the SE Sector
• Drilling of holes CAU28 and CAU29 completed to extend the NW Sector resource area further south, increasing it by ~20%. Drilling identified the presence of an extensive (>300 m thick) sequence of sand and gravel in the southern continuation of the NW Sector
• Constant-rate pumping test completed in CAU11 to simulate long-term production; CAU07 pumping test to begin within 2 weeks.

Managing Director & CEO Richard Seville commented: "I am very pleased that the current Phase III drilling program has expanded the footprint of the resource area, as we rapidly progress towards updating the current resource to Measured and Indicated categories. The current constant rate pumping test that was completed on 25^th November provided important information on the basin hydrology. We are now well advanced with the Environmental Impact Assessment and are in the final stages of selecting engineering consultants to deliver the Definitive Feasibility Study for the project".

NW Sector Drilling Update

Drilling is close to completion in the NW Sector with holes CAU28 and CAU29 completed since the last update on activities when CAU24 was completed. CAU28 and CAU29 extend the June 2018 resource area some 5 km further to the south and increase the area for the update of the NW Sector resource by approximately 20%.

CAU28 and CAU29 are located 2.6 km and 5.1 km, respectively, south of CAU24. It should be noted that brine mineralisation is still open to the south in the JV properties. These drill holes in the NW Sector have intersected an extensive sequence (over 300 m) of sand and gravel, which appears to have high porosity and permeability, making it attractive for future brine extraction. CAU23 is located in the NW Sector between holes CAU15 and CAU24.

SE Sector Drilling Update

CAU25 and CAU27 have been completed along the eastern edge of the SE Sector. These holes were completed at depths of 427 and 473 m respectively and intersected a sequence with some sandy material interbedded with halite and clay units.

CAU19 has been completed in the southwest of the SE Sector to a depth of 519.5 m. This hole intersected the deep sand unit from 434 m to 519.5 m (a thickness of >85 m), with sandy units continuing at the end of the hole. CAU19 is close to the southern boundary of the property and confirms the extension of the deep sand into this area.

Pumping Tests

The constant rate pumping test has been completed on test production well CAU11 in the SE Sector, following completion of a variable rate test to confirm the pumping rate for the constant rate test. Brine concentrations were monitored throughout the test, in addition to water levels in the pumping well and a network of surrounding observation wells. The final preparations are currently underway for the CAU07 pumping test in the NW Sector.

The tests will provide additional information on aquifer characteristics as an input to the three-dimensional groundwater model that is being developed to estimate lithium reserves and to develop a production schedule for the project.

Definitive Feasibility Study Consultant Selection

Proposals were received from four international engineering companies in response to a request for proposal by the company for the Definitive Feasibility Study engineering for all aspects of the company's Cauchari project. The company is in the final stages of selecting one of these companies for the DFS engineering.

Environmental Impact Assessment

The company and consultants continue to advance the Environmental Impact Assessment, with preparation of key chapters for the EIA document underway.

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

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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