Lithium Energy closes in on Solaroz resource with more brine intersections

Lithium Energy’s dream of building a significant maiden resource at its Solaroz brine project in Argentina has taken another step forward with drilling returning significant intersections of conductive brines.

The fourth and fifth holes of its maiden 10-hole program have intersected conductive brines in the upper aquifer and the targeted “Deep Sand Unit” (in the lower aquifer) within the northern central section of the Salar de Olaroz basin.

Lithium Energy (ASX:LEL) noted that the ongoing SOZDD004 drillhole has intersected 210m of conductive brines to date with 158m encountered in the upper aquifer from a depth of 120m while another 52m has been intersected to date in the Deep Sand Unit from 332m.

Likewise, SOZDD005 has intersected 163m of conductive brines in the upper aquifer from 110m and 38.5m of brines in the Deep Sand Unit from 312m.

Drilling at both holes is continuing deeper into the Deep Sand Unit, with SOZDD004 targeting hole depth to basement of approximately 503 to 580 metres and SOZDD005 targeting hole depth to basement of approximately 480 to 530 metres.

Conductive brines in both holes are generally increasing in conductivity and density at depth, as drilling progresses into the Deep Sand Unit.

Notably, the similarity to the first and third holes in the program supports the potential for the widespread occurrence of lithium brines across significant portions of the 12,000ha concessions held by the company at Solaroz.

Executive chairman William Johnson said the results from the two holes is “very encouraging” and that drilling is continuing “with the aim to drill to basement and to determine the thickness of the Deep Sand Unit in the lower aquifer”.

“As we approach the halfway point in the initial 10-hole drilling programme and given the highly favourable results from drilling to date, we have sourced and engaged a third drill rig, which will commence drilling in May 2023,” he added.

“Having three drill rigs operating concurrently will significantly accelerate the completion of the remaining drillholes in the programme and the definition of the company’s maiden JORC lithium mineral resource at Solaroz.”

Scoping Study

Lithium Energy recently appointed consultants Hatch to undertake a Scoping Study into the production of battery grade lithium carbonate from the rich brines at Solaroz.

The results of this study are expected to coincide with the definition of the first resource.

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.