Lithium Energy definitely isn’t crying for Eva Peron, kicking off its Solaroz brine lithium project in Argentina. Pic via Getty Images.
All going to plan for Lithium Energy as Solaroz brine drilling kicks off smoothly
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Lithium Energy has posted a successful start to its highly anticipated maiden drill program at the Solaroz brine lithium project in Argentina, with its first diamond drill hole progressing to plan.
Located 10km from $10 billion capped Allkem’s (ASX:AKE) Olaroz production field and just 3km from its recently acquired Maria Victoria concession, the diamond drill hole is the first of a high impact 10 hole, 5000m program to test the massive brine exploration target at Solaroz.
Located over 12,000 hectares of salt lakes in the Salar de Olaroz basin, part of South America’s vaunted Lithium Triangle, Lithium Energy (ASX:LEL) has previously posted a conceptual exploration target of 1.5 to 8.7 million tonnes of lithium carbonate equivalent based at between ~500 mg/L Lithium and 700 mg/L Li.
The first drill hole is at 60m depth where the pre-collar is being cemented in place, with a further 300-350m of HQ diamond core drilling to follow into conductive brines identified in previous geophysics.
The pre-collar will isolate any fresh or brackish water (which TEM Geophysics indicating that would likely be found in the first 50-60m) and prevent dilution with the deeper more conductive brines expected below.
In short, LEL is really getting stuck into the good stuff now.
Once that pre-collar has been set with concrete the drill will keep going to its target depth of 350-400m below surface, expected to take around three weeks.
After geophysical logging to determine the width and physical attributes of the aquifers is done the drill hole will be cased with PVC and double as a monitoring bore for flow rate testing.
More drilling will come, with discussions currently being advanced with a number of contractors to secure one or more additional rigs to accelerate the 10 hole, 5000m program.
LEL is well stocked and supported for the program, last week raising $15 million in a ‘heavily oversubscribed’ capital raising at $1 a share, five times its listing price from a little over a year ago.
This article was developed in collaboration with Lithium Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
