Lithium Energy is off the starting blocks and looking to fast-track development of its Solaroz lithium brine project. Pic via Getty Images.
Lithium Energy’s monster 3.3Mt LCE maiden resource at Solaroz is just the beginning
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A much anticipated maiden resource at Lithium Energy’s Solaroz brine project weighs in at a significant 3.3Mt – and that’s just from the first five drill holes.
Solaroz, located next door to Allkem’s (ASX:AKE) lithium facility in the Salar de Olaroz Basin, Argentina, is in the heart of South America’s ‘lithium triangle’.
This initial resource encompasses an area covered by the first five holes of an initial 10-hole drilling program, together with extensive geophysics, and encompasses portions of the ‘Central Block’ of concessions (Chico I, V and VI, Payo 2 South and Silvia Irene) and the southern Mario Angel concession totalling 4,777ha – less than half the total ~12,000ha project area of Solaroz.
Within that 3.3Mt lithium carbonate equivalent (LCE) resource is a high-grade core of 1.34Mt of LCE with an average concentration of 405mg/l lithium (at a 350mg/l lithium cut-off grade).
Lithium Energy (ASX:LEL) is targeting a 20,000-40,000tpa LCE plant at Solaroz and is currently evaluating development options using conventional evaporation ponds and/or Direct Lithium Extraction (DLE). To test the suitability of DLE for Solaroz, the Company is currently advancing plans for the construction of an 3,000tpa LCE production plant using DLE technology from with Xi’an Lanshen New Material Technology (Lanshen), to be located at the Mario Angel concession within the project area. Lanshen’s DLE technology is one of the few DLE technologies that has been proven to be effective for extracting lithium from brines on industrial and commercial scale.
3.3 million tonnes of LCE
“This maiden resource estimate of 3.3Mt of LCE confirms the potential for Solaroz to be a world-class lithium project, with reported lithium grades, brine volumes, Mg/Li ratios, and specific yields all being positive indicators for the potential economic future brine extraction at Solaroz,” LEL chair William Johnson said.
“Solaroz is located on the Olaroz Salar in northwest Argentina, one of the best locations in South America’s ‘lithium triangle’ for developing large-scale lithium brine operations, as evidenced by our Olaroz neighbours Allkem and Lithium Americas.
“Allkem has reported production of lithium carbonate from Olaroz since 2015 using traditional brine evaporation, with latest reported cash costs of only US$4,924/tonne LCE and reported Gross cash margin of US$47,814/tonne LCE.
“With the establishment of this significant maiden resource, the company will now focus on fast-tracking the development of Solaroz.”
Next steps
LEL says that in the absence of drilling data to the north and the west of the holes, further drilling will be conducted to potentially upgrade the resource size and grade of the MRE.
“The ‘Northern Block’ of concessions (Payo 1 and Payo 2 North) totalling ~2,731 hectares and the western areas of the Central Block have yet to be drilled,” the company said.
LEL says it’s continuing to advance its drilling programme to target these substantial areas, where there is potential for further brines as identified by previously conducted geophysics.
In addition, the company is planning further infill drilling to upgrade the inferred resource category and test production wells to support the ongoing engineering and development studies.
“In March 2023 the Company engaged engineering consultancy Hatch to commence initial engineering and scoping studies for the production of battery grade lithium carbonate from the lithium-rich brines of Solaroz,” Johnson said.
“Whilst these studies are focussed on the same pond evaporation methodology for lithium concentration currently used by Solaroz neighbours Allkem and Lithium Americas, they also include the evaluation of various Direct Lithium Extraction (DLE) technologies as alternatives to, or in combination with, pond evaporation.
“In this regard, the agreement recently executed between the company and Lanshen provides a significant advantage for us to examine in parallel the applicability of Direct Lithium Extraction (DLE) technology to traditional pond evaporation processes which have been proven by both Allkem and Lithium Americas in their operations in the Olaroz salar.
“Drilling will continue to advance at Solaroz, targeting additional areas where the potential for further lithium mineralisation has already been identified by geophysics, together with further infill drilling to upgrade the maiden inferred resource and test production wells planned in support of the engineering and development studies for 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.
