Ni 43-101 Technical Report South Railroad Valley
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NI 43-101 TECHNICAL REPORT on the SOUTH RAILROAD VALLEY LITHIUM PROPERTY Nye County, Nevada by Edward Lyons, P.Geo. TEKHNE RESEARCH INC. Victoria, BC for BLUE EAGLE LITHIUM INC. Henderson, NV Effective Date 11 October 2018 Issue Date 15 October 2018 CERTIFICATE OF AUTHOR I, Edward Lyons, P.Geo., as an author of the technical report entitled “NI 43-101 Technical Report: South Railroad Valley Lithium Property, Nye County, Nevada” dated 15 October 2018 with the effective date of 11 October 2018 and prepared for Blue Eagle Lithium Inc. (the “Issuer”), do hereby certify that: I am currently employed as a Geological Consultant and Director of Tekhne Research Inc. with offices at 1067 Portage Road, Victoria, BC V8Z 1L1. 1) I graduated with a Bachelor of Science (Honours) degree in Geology from the University of Missouri at Rolla in 1970. 2) I am a Professional Geoscientist enrolled with the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) (Member # 122136), the Ordre des géologues du Quebec (OGQ) (Member # 701), and the Professional Engineers and geoscientist of Newfoundland and Labrador (PEGNL) (Member # 05711). 3) I have worked as a geologist for a total of 46 years since my graduation from university. My experience has included exploration and technical management on base-metal sulphide deposits in Canada for over 30 years and base-metal oxide deposits in Chile and Mexico (four years), precious metal (Au-Ag) in Canada and Mexico (six years), graphite in Canada (14 years, including as Qualified Person for ten NI 43-101 reports), and iron deposits in BC, QC, and NL (seven years, including acting as Qualified Person on five NI 43-101 reports). All works were mainly on site. I have visited several lithium properties in Canada, Chile, and Clayton Valley Nevada and authored an NI 43-101 report in the Railroad Valley Basin for lithium in reservoir brines in 2016. 4) I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that, by reason of my education, affiliation with a professional association as defined in NI 43-101 and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5) I am responsible for entirety of the technical report entitled “NI 43-101 Technical Report: South Railroad Valley Lithium Property, Nye County, Nevada” dated 15 October 2018 . 6) I visited the South Railroad Valley Property for one day on 15 August 2018 and collected independent check samples. 7) As of the effective date of the certificate, to the best of my knowledge, information, and belief, the Technical Report herein contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. 8) I have no personal knowledge, as of the date of this certificate, of any material fact or material change which is not reflected in this Technical Report. 9) I am independent of the Issuer, Blue Eagle Lithium Inc., applying all the tests in section 1.5 of the NI 43-101. 10) I have not had any prior involvement with the Property that is the subject of this Technical Report. 11) I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. Dated on 15 October, 2018 <Signed & sealed in the original> Edward Lyons, P.Geo. NI 43-101 TECHNICAL REPORT – RAILROAD VALLEY LI PROPERTY , NV Page 2 of 67 TABLE OF CONTENTS Title Page Date and Certificate of Author Table of Contents 1 Summary ………………………………………………………………………………………………………………....6 2 Introduction …………………………………………………………………………………………………………..…8 3 Reliance on Other Experts ………………………………………………………………………………….…..10 4 Property Description and Location …………………………………………………………………….…..10 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ……………….14 6 History ………………………………………………………………………………………………………….…….….16 7 Geological Setting and Mineralization ………………………………………………………………...….18 8 Deposit Types ………………………………………………………………………………………………….….….34 9 Exploration ……………………………………………………………………………………………….……….…..40 10 Drilling …………………………………………………………………………………………………………………...45 11 Sample Preparation, Analyses and Security ………………………………………………..…...…….45 12 Data Verification ……………………………………………………………………………………….………..….46 13 Mineral Processing and Metallurgical Testing ……………………………………………………..….47 14 Mineral Resource Estimates …………………………………………………………………………………...47 15 Mineral Reserve Estimates ……………………………………………………………………………………..47 16 Mining Methods …………………………………………………………………………………………………....47 17 Recovery Methods ……………………………………………………………………………………..………....47 18 Project Infrastructure ……………………………………………………………………………………….......47 19 Market Studies and Contracts …………………………………………………………………………..……47 20 Environmental Studies, Permitting and Social or Community Impact ……………….…...47 21 Capital and Operating Costs ……………………………………………………………………….......47 22 Economic Analysis ……………………………………………………………………………………………..…..47 NI 43-101 TECHNICAL REPORT – RAILROAD VALLEY LI PROPERTY , NV Page 3 of 67 23 Adjacent Properties ………………………………………………………………………………………..….…47 24 Other Relevant Data and Information ……………………………………………………….…....……50 25 Interpretation and Conclusions ……………………………………………………………………..........50 26 Recommendations …………………………………………………………………………………………….….51 27 References ………………………………………………………………………………………………………......54 Appendix A –Detailed claims data………………………………………………….………….....….55 - 67 Illustrations Figure 1 Location of Railroad Valley ..................................................................................................... .11 Figure 2a Access from east access road to South Railroad Valley property ............................................ 12 Figure 2b Typical corner-post on property at sample site AS-10-18………………………………………………….….12 Figure 3 Claims map: South Railroad Valley lithium property ................................................................ 13 Figure 4 Regional geology map ............................................................................................................. 21 Figure 5 Legend for geology map . ........................................................................................................ 22 Figure 6 Seismic section W to E across Railroad Valley ......................................................................... 23 Figure 7 Areal distribution of mature Ro oil source rock beneath Railroad Valley ……………………….…….…25 Figure 8 Age vs. burial depth – Spencer-Federal #32-29, Eagle Springs @2 & Bacon Flat #5 wells. ......... 26 Figure 9 Shallow crustal residual (isostatic) gravity beneath Railroad Valley. ......................................... 27 Figure 10 Li in NURESED soil samples in Railroad Valley, Nevada........................................................... 29 Figure 11 South Railroad Valley property showing geomorphological patterns. .................................... 31 Figure 12 Sinuous ridges and younger dunes on southeast edge of property………………………………….……32 Figure 13 Sinuous erosional ridge photo………………………………………………………………………………….…………..32 Figure 14 Sinuous ridges and dunes (detail) .......................................................................................... 33 Figure 15 Rabbit bush overgrowthon north and west edge of property................................................. 33 Figure 16 Total catchment basins draining into Railroad and Clayton Valleys, Nevada. .......................... 39 Figure 17 Location and Li values of BEL reconnaissance & check soil samples 2018………………………..…..41 Figure 18 Adjacent properties……………………………………………………………………………………………………………..49 NI 43-101 TECHNICAL REPORT – RAILROAD VALLEY LI PROPERTY , NV Page 4 of 67 Figure 19 Map of Oil-Gas-Water wells through 2013 in Railroad Valley..……………………………………………...52 Figure 20 Proposed AMT geophysical lines, Phase 1 program…………………………..…………………....…........…53 Tables Table1 Units & Abbreviations ................................................................................................................. 9 Table 2 Plant communities & evapotranspiration in Railroad Valley.. .................................................... 15 Table 3 Basin fill stratigraphy ............................................................................................................... 20 Table 4 Comparison between Clayton Valley and Railroad Valley. ......................................................... 38 Table 5 Analytical results for Li - original and check soil samples……………………………………………………….…40 Table 6 Selected water-leached elements in check samples ………………………………………………………….......42 Table 7 Paste pH in check samples……………………………………………………………………………………………………...43 Table 8 Carbon analyses in check samples………………………………………………………………………………………..…43 Table 6 Comparison of original vs. check samples……………………………………………………….……………………….44 NI 43-101 TECHNICAL REPORT – RAILROAD VALLEY LI PROPERTY , NV Page 5 of 67 1 SUMMARY The South Railroad Valley lithium project is a contiguous 200- claim block in the southern sector of the large extensional Railroad Valley basin which has had no exploration for lithium brines. It is located in the northeastern corner of Nye County, Nevada in east central Nevada which has largest oil field in Nevada. The South Railroad Valley property possesses these significant features related to known lithium brine deposits: Located in the large Railroad Valley, a closed, arid basin, with a highly evapotranspirative hydrologic environment; The main basin infill