Atacama Resources International Inc (ACRL)

[mick]

#3---excerpt;Atacama Resources International Mining Claims-01-01-2019
Graphite, Cobalt and Diamonds
Technical Memorandum
January 1, 2019
https://static1.squarespace.com/static/58b5961486e6c0717e9be46f/t/5c33eae788251ba3e308abc6/1546906359160/FinalACRLStrategicMaterialTechMemo122818.pdf



Opening Discussion
Graphite
? Atacama owns the mining claims for the Mystery Graphite Property totaling 1265
acres with 44 claim units in Kemp and Kelvin Townships, Larder Lake Mining
Division and recorded with the Ontario Ministry of Northern Development and
Mines as 100% held by Atacama Resources International Inc.
? Twelve holes were drilled in the Mystery Graphite property and Atacama has
several thousand feet of core samples in their possession. Graphite gneiss was
intersected in several drill holes, yielding up to 5% graphite with flake graphite up
to ¼ inch observed in some drill holes. The core samples have been safely
stored to maintain 43-101 status but have not been assayed. However, with a
comprehensive assay program covering thousands of feet of core samples,
expected results will form the foundation for actual production within the next few
years.
? An existing graphite processing plant near the Mystery Graphite property has the
necessary equipment, has the required permits and just needs to be updated to
handle any graphite mined at the Atacama location.
? The price of graphite is about the same as a year ago because of current global
trade uncertainties, but the long-term forecast for graphite price increases is very
strong. China currently mines about 75% of the world’s graphite and is
stockpiling for its own use rather than selling in the global market.
? There are no producing graphite mines in the United States and only one
graphite mine in Canada. That mine is quickly exhausting its supply. With the
exploding demand for graphite worldwide, it is clear that a successful Atacama
graphite mine would increase the market value of Atacama significantly be a
game changer for the graphite industry on a global basis.
Cobalt
? Atacama owns the mining claims for the Cabo Property totaling 317 acres with xx
mining claim units in Lorain Township nine miles southeast of Cobalt, Ontario in
the Larder Lake Mining Division and recorded with the Ontario Ministry of
Northern Development and Mines as 100% held by Atacama Resources
International

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The property has had at least fifteen holes diamond drilled for a total of 3000
feet. During that time stripping and trenching, geological mapping, till sampling
and UTM, magnetometer and VLF surveys were conducted. Because the
objective of the previous drilling was to locate concentrations of gold and silver,
no significant cobalt data is available.
? However, extensive core samples taken from the drills are in the company’s
possession and will be assayed for cobalt in 2019.
? Grab samples were conducted in 2017. With an assay of 1.22% cobalt from the
Giroux Shaft area, further backhoe stripping around the shafts to uncover the
original bedrock surface around the shaft collars is recommended. It will be
included in 2019 Cabo property development
? The Atacama Cabo claims are in the middle of the ‘Cobalt Camp,’ which is
clearly the cobalt hot spot in North America. In addition to the results of the
Giroux Shaft grab, numerous additional grab samples taken in 2017 indicate
viable cobalt concentrations.
Diamonds
? Atacama owns the mining claims for A1 Kimberlite Diamond Property totaling
393 acres with xx claim units located nine miles northeast of Kirkland Lake,
Ontario in the Larder Lake Mining Division and recorded with the Ontario Ministry
of Northern Development and Mines as 100% held by Atacama Resources
International.
? Atacama’s Cabo property, in addition to high concentrations of cobalt, has
yielded both micro and macro diamonds and the search for diamonds will be
included in 2019 Cabo property development.
? In 2005, at the A1 Kimberlite property, a 9.3 kg sample was taken from diamond
drill cc-14, processed by caustic fusion and contained a total of 95 diamonds.
This included 4 macrodiamonds (greater than 0.5 mm in two dimensions.) The
largest diamond recovered was a 2.54 mg white, polytetrahedroid measuring
1.36 mm x 1.20 mm x 1.12 mm. The diamond-bearing sample was taken from a
4.15m interval (between 32.45m and 36.60m) within a 61.m intersection of a
lamprophyre and mafic, heteroloithic breccia zone.
? Both the A1 Kimberlite and Cabo properties are easily accessible by road and
near mining communities. In contrast, the four existing diamond mines in Canada
are in Canada’s far north and the extremely remote locations of all these mines
make development cost extraordinarily high.
MINERALS & LOCATIONS
Success in this business depends on market demand, location, cost minimization,
experienced operators and dependable funding. The good news is demand for all the
minerals and precious metals on our exploration sites is expected to rise. We have
multiple claims on 1975 acres, excluding the company’s gold holdings, in the Kirkland

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Lake and other areas of mineral-rich northern Ontario. These sites are easily accessible
to existing roads and rail, close to mining communities, and near mining exploration,
development and refining operations. In short we are well-positioned in a proven mining
area with anticipated cost-efficient operations.
A team of mining and business experts has been assembled to manage and operate
the projects on our claims. We have engaged the services of Canadian Exploration
Services (CXS), a highly respected provider of exploration services, as a key member of
our team. The company has recently added two respected geologists to its staff and the
company is well positioned to manage it further mining development.


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A "Gold Rush" claim-staking frenzy is happening in what is known as The Cobalt Camp
in the area surrounding the community of Cobalt, Ontario. Atacama Resources
International has obtained mineral rights on 317 acres right in the middle of the area just
SW of Cobalt. The Cobalt Camp is the largest single location of cobalt in the world. Why
the sudden interest in cobalt? Cobalt is one of the few metals used for super alloys
needed in nuclear reactors, jet and rocket engines, turbines, power plants, and in
various military and space technologies.
These applications will likely see significant growth in the near future. And – expect to
see extraordinary growth in another sector – Batteries and Energy Storage. The "Green
Movement" happening throughout the world has accelerated cobalt's rise to
prominence. Cobalt is used in the manufacturing of lithium-ion batteries used in electric
vehicles. Tesla's battery manufacturing mega-factory in Nevada has a mandate to
source all its needed cobalt from North American suppliers. The Tesla plant is not the
only new facility. China is currently building four, Germany two, Japan two and South
Korea one. Global demand for cobalt is about to skyrocket.
The world’s supply of cobalt is not adequate to meet the forecasted demand. Currently
63% of the world's cobalt is mined in the Democratic Republic of the Congo (DRC).
DRC is known for its political instability, corruption, human rights abuses and violence.
These unfortunate conditions make the DRC an unreliable source for such a strategic
and critical product. Atacama’s cobalt mining rights in Ontario, Canada position the
company to be an important source of North American cobalt.

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GRAPHITE
New uses for this mineral are creating high market demands worldwide. Graphite has
recently been categorized as a crucial strategic mineral by several governments
including the United States and the European Union because it is used in energy
related applications such as electric vehicles, nuclear reactors, fuel cells, solar panels
energy storage, photovoltaics and many electronics including smartphones and
laptops. China is thought to produce 70% of the present global supply. They are now
retaining 80% for their own use.
It is not clearly understood by all industry sectors yet but graphite is now an essential
material in regards to contributing to our future economy and way of life. For instance, it
is the source of graphene which the Huffington Post has noted will "change the world"
as the "new plastic". Graphite is essential to the North American economy, defense,
technological innovation, for manufacturing and for food supply chains.
The graphite supply raises concerns and contributes to the “strategic” label placed on
this sought -after mineral. The Western world is nearly totally dependent on foreign
sources of graphite and is extremely vulnerable to supply disruptions. At least 70% of
global supply presently comes from China. As noted above, China is now stockpiling
80% of its production. There is only one producing graphite mine in all North America
with supplies soon to run out.. With world-wide demand for graphite growing it is
projected that 25 new graphite mines will be needed by 2020. The Tesla "mega factory”
in Nevada alone will require four to six new graphite mines. Tesla wants this battery
factory to get its graphite from North American suppliers. The US military has stated that
it wishes to be totally off the electrical grid and be self-sufficient as soon as possible.
This alone will significantly enlarge the demand for energy storage, transport batteries
as well as batteries to drive all the electronics currently found on every combat soldier.
Atacama’s Mystery Graphite property is located in the Kemp & Kelvin Townships,
Larder Lake Mining Division in Ontario, Canada. Mystery Graphite shows good promise
for producing mines. Another company is building a graphite processing plant close to
Atacama’s properties. This bodes well for future cost and time savings.

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DIAMONDS
Canada has four diamond mines and is the third largest supplier of gem quality
diamonds in the world. The USA has no diamond mines. Early exploration work on our
diamond properties has turned up macro and micro diamonds – from samples close to
the surface. The market demand for diamonds from North American sources is
expected to grow – especially from the USA (the world’s largest market for diamonds).
Atacama has acquired mineral rights for two diamond properties. The 317 acre Cabo
property, also rich in cobalt, has shown positive results for diamonds as well. Accessible
by road, the property comprises two diamond showings and an exploration shaft.
Exploration in the early 2000s included diamond drilling, trenching and geophysics.
Initial sampling recovered 96 diamonds including a few macro diamonds. Based on
these findings, Atacama is planning extensive and intensive exploration for both cobalt
and diamonds for this site.
The A1 Kimberlite Diamond Project of 393 acres is located nine miles NE of the historic
mining community of Kirkland Lake, Ontario at the junction of highways 672 and 66.
Significant work has been performed on the one kimberlite pipe on the property and
recent till samples revealed a high level of chromium garnet which is an indicator of a
diamond bearing kimberlite. Another pipe saw a recovery of seven diamonds, two of
which were macro diamonds. Further work on the property is planned for 2019.
The supply of diamonds is not keeping up with the demand. This is becoming a serious
problem. A primary source of the world’s diamond supply is from areas whose
diamonds have become known as "Blood Diamonds" or "Conflict Diamonds". These

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Atacama has to start by reviewing and assaying its extensive inventory of core samples,
surface grabs and tailings. This is the least expensive way to determine concentrations
of graphite and cobalt and the number and size of diamonds in Atacama claims.
Geophysical and aerial review of the properties are the next order of business with a
focus on the existing drill holes and surface scrapings.
Next, a thorough geologist review of all the properties is necessary to determine
appropriate future development activities. The success of the company’s funding will
determine the schedule for confirming the reserves for the Atacama position covering
graphite, cobalt and diamonds.
The investment required to confirm the proven reserves will be dependent on the extent
of diamond drilling and shallow excavation required to provide rock solid assays that
indicate proven concentrations of graphite, cobalt and diamonds. The budget will total
approximately US $2,000,000.
A capital raise of US $2,000,000 is required, with an immediate cash infusion of US
$500,000.
The associated capital raise of US $3,000,000 for confirming the proven reserves
for the Atacama gold position, with an immediate requirement for US $1,000,000
indicates a total capital raise of US $5,000,000 with US 1.500,000 required
immediately.
The upside for the market value increase of the company assuming the expected
confirmation of gold ‘proven reserves’ for the Atacama 1, 2 and 3 holdings as well
as the Atacama reserves for graphite, cobalt and diamonds is significant. The
expected increase in the price of the ACRL common shares make this investment
opportunity worth a serious review by any qualified investor interested in having an
equity position in a significant mining opportunity.
Contact: Glenn Grant, President and CEO, Atacama Resources International, Inc.
[e-mail] and 1-780-512-3805