Lithium Energy has heralded lithium brine concentrations of more than 500 milligrams per litre in initial assay results from the fourth and fifth holes sunk at the company’s Solaroz project in Argentina.
Management says the latest results have boosted its optimism of recording a potentially world-class lithium resource for the project.
While ongoing drilling is yet to reach its final brine depth, the company says assays show its current program has intersected a massive 401.5m of conductive brines grading up to 508mg/l lithium in the fourth hole.
The fifth hole has also returned impressive results, with a total of 369.5m of conductive brines intercepted at 479mg/l lithium. The fifth hole is currently at a depth of 545m while the fourth hole is now at 650m.
Lithium Energy says assay results to date have also confirmed that lithium concentrations are generally increasing at depth, indicating a hydraulically-linked system with heavier lithium-rich brines settling lower into the aquifer. The company says conductive brines are still being intercepted in both holes, with a 74m hit from 575m in the fourth hole and a further 26m intersection from 518m in the fifth hole.
With the latest assay results, it says it has hit significant intersections of lithium-rich conductive brines across a 15km zone.
These recent results are tremendously exciting, as they provide further confirmation of a potentially world class resource of lithium at Solaroz. A third drilling rig is preparing to mobilise to site and with three rigs soon to be operating concurrently, we are rapidly advancing towards defining our maiden JORC resource at Solaroz. Lithium Energy executive chairman William Johnson
The company’s current campaign will total 10 holes for 5000m in search of conductive brines to depths of up to 500m below surface. The program is designed to reveal some of the geochemical makeup of the brine and to assist with further targeting by unlocking information on its distribution and the physical parameters of the different hydrogeological units.
Lithium Energy has already outlined a conceptual target at Solaroz following a comprehensive study of historical geophysical and drilling data related to the zone’s brines. The figure ranges between 1.5 million to 8.7 million tonnes of contained lithium carbonate equivalent, with average grades of between 500 and 700mg/l lithium.
The company has now sourced a third drill rig after finding more significant intersections of conductive brines during its current maiden drill campaign.
The additional rig will start drilling this month and is expected to accelerate both the program and the upcoming completion of a maiden JORC mineral resource at the operation.
Lithium Energy says assays are pending on some packer samples and sampling is ongoing as drilling continues within the deep sand unit to basement.
Shares in the company jumped more than 35 per cent following the latest assay results to touch 79 cents during intraday trading after closing at 58c on Friday. While the price settled at 71.5c by the close of trading, the market is obviously keeping a close eye on what Lithium Energy is delivering at Solaroz.
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