LEL extends Solaroz lithium brines as Alkem-Livent merger builds awareness
The US$10.6bn merger of Alkem and Livent has drawn attention to the Olaroz Salar where Lithium Energy’s drilling at the Solaroz project continues to extend massive intersections of lithium brines.
The merger validates the company’s strategy to accelerate development of its project in the world class Salar de Olaroz lithium brine basin (Olaroz Salar).
It comes as drilling extends the intersections of conductive brines at Holes 4 and 5 up to 473.5mm with lithium concentrations in excess of 480mg/L as drilling enters into the lower aquifer (Deep Sand Unit).
Holes 4 and 5 are currently at depths of 787.5m and 640m respectively in the Deep Sand Unit with potential for the brine intersections to extend even further with sampling and assays pending for a further 140m in Hole 4 and 73.5m in Hole 5.
The intersection of such massive (and growing) intersections bodes very well for Lithium Energy’s (ASX:LEL) upcoming maiden resource estimate for Solaroz.
And if this prospectivity wasn’t clear enough, the company is also mobilising a third rig to drill Hole 6, which is located along a 15km zone between Holes 1 and 3 in the northwest region of the Olaroz Salar.
“The $10.6 billion merger of Allkem and Livent highlights the world class location of the Olaroz Salar in Argentina, where Allkem shares the lithium rights with Lithium Energy (Solaroz) and Lithium Americas Corporation,” executive chairman William Johnson said.
“Drilling continues to extend outstanding intersections of lithium rich brines at Solaroz, with 473.5m of brines now encountered in SOZDD004 so far and 417.5m in SOZDD005.
“Further assay results to current drill hole depth (almost 800m at SOZDD004) are yet to be received, with potential for the intersections to therefore increase even further in each hole.
“As previously reported, the significance of these intersections at SOZDD004 and SOZDD005 cannot be overstated as they highlight the continuity of massive zones of lithium rich brines along a ~15km zone between previously drilled Solaroz drillholes SOZDD001 and SOZDD003.”
Assay results received to date have indicated that lithium concentrations are generally increasing at depth, indicating a hydraulically linked system with heavier lithium rich brines settling lower into the aquifer on the Olaroz Salar.
The results also support the company’s geological model of extensive sandstone aquifers hosting lithium-rich conductive brines being present in the northern central section of the Olaroz Salar below substantial portions of its 12,000ha concession.
Drillhole 4 (SOZDD004) has intersected a total of 473.5m of conductive brines with assays returning up to 508mg/l lithium to date while hole 5 (SOZDD005) has intersected a current total of 417.5m of conductive brines.
Geophysical hole logging will be undertaken out at both holes to provide measurements including porosity, specific yield, conductivity and spectral gamma.
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.