Lithium Energy completes slam dunk first hole at Solaroz, with more to come

Lithium Energy is set up well for a major drill drive at its Solaroz brine project in Argentina, where the first drill hole has delivered “very positive indicators for the delineation of a potentially significant Maiden JORC Resource”.

Lithium Energy (ASX:LEL) is exploring for what it has posited could be an extension of the lithium rich brines that sustain Allkem’s (ASX:AKE) nearby Olaroz project, one of the western world’s biggest lithium carbonate suppliers.

The first drill hole has now been completed, delivering significant cumulative intersections of up to 235m of lithium brine mineralization across its upper and lower aquifers.

Completed within the Mario Angel concession at Solaroz to a depth of 337.5m, the hole encountered lithium grades increasing at depth.

Preliminary results from assays of packer sampling of conductive brines have returned lithium concentrations of up to 555mg per litre (from 229m in the sandstone units and fine gravels in the upper aquifer).

Assays picked up 517mg/L in the lower aquifer, a 60m thick mostly uniform lithium brine hosting sandstone units and fine gravels from 265-325m deep, with the best assay at 274m.

They also bear positive flow rates and a low magnesium to lithium ratio.

Full hole assays are pending with core samples sent to a US lab for centrifuge brine extraction, chemical analysis and porosity as well as specific yield testwork. All are needed to define a maiden JORC resource.

More to be found

Drilling could yet have gone deeper, with attempts to extend drilling in the lower aquifer into basement rock halted because challenging conditions risked damage to the hole.

That would have made geophysical hole logging, a key element of the exploration program, a tricky task.

While these drilling conditions prevented LEL from collecting packer samples from 293m to the bottom of the hole, the brines are contained mostly in sandstone, considered favourable due to their porosity and permeability for future brine extraction.

Core samples have been taken at regular intervals over the hole length, meaning it will be able to identify lithium distributions and characteristics over the full depth.

The rig at SOZDD001 will move on to the next hole of the 10 hole, 5000m, drilling programme one geophysical logging is complete, and LEL is currently mobilising a second rig to site to pick up the pace of drilling.

Executive chairman William Johnson said 235m of cumulative mineralisation at LEL’s maiden drillhole was a significant lithium discovery.

“Lithium grades of up to 555Mg/L from packer sampling taken during drilling, together with positive measured flow rates and relatively low Mg/L ratio are also very positive indicators for the delineation a potentially significant Maiden JORC Resource at Solaroz,” he said.

“Lithium Energy is looking forward to now progressing with geophysical logging of the hole which, together with the analysis of core samples to be undertaken by a laboratory in the United States, will enable the Company to determine a more comprehensive distribution of the lithium concentrations throughout the hole together with specific yield and porosity data that are important in understanding the potential for extracting lithium brine from the two aquifers encountered.

“Lithium Energy is now advancing with the next diamond drill holes in its programme.

“In this regard a second rig is currently mobilising to site and with two rigs operating, the Company is accelerating the planned 10 hole, 5,000 metre drilling programme with the aim of expediting the establishment of a significant Maiden JORC Resource of Lithium at Solaroz.”

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.