The confirmation of lithium mineralisation is considered significant as the Northern concession block has not been drilled to date. Pic via Getty Images.
Mining
Lithium Energy’s seventh drillhole has intersected lithium rich mineralisation in the upper aquifer of the previously undrilled Payo 1 concession at Solaroz, returning assays of 386 mg/l lithium from 209 to 233m.
Lithium Energy’s (ASX:LEL) flagship Solaroz project is located in the heart of Argentina’s ‘lithium triangle’, well-known for its ability to produce lithium brines from evaporation ponds known as ‘salars’.
Building a big-lined pond is not only simpler, but also more cost effective than other methods as it relies on natural evaporation, aided by sunlight and the dry air of the Andean highlands.
Processing the resulting crystallised lithium salts is also easier when compared to the hard rock (spodumene) deposits found in Australia and Canada.
While LEL’s Solaroz project, next door to $8.7bn market cap lithium stock Allkem (ASX:AKE), is early stage, the company is quickly proving its potential with latest drilling results intersecting lithium mineralisation at the Payo 1 Concession.
Assay results confirmed an initial 24m intersection of lithium-rich brines with 386 mg/l lithium in sandstone in the upper aquifer.
From the explorer’s point of view, this confirms lithium mineralisation in the Northern concession block which has not been drilled to date and was not included in the current 3.3Mt LCE JORC Inferred Mineral Resource Estimate (MRE) at Solaroz.
“This highlights the potential for further expansion of lithium mineralisation at the Solaroz– which already holds a significant and strategic lithium resource,” LEL executive chairman William Johnson says.
“The large size of Payo 1 (1,973 hectares) indicates that the potential now exists for a significant amount of new lithium mineralisation to be delineated here.”
Drilling also encountered a halite layer in SOZDD007, which supports LEL’s geological model that the targeted Deep Sand Unit in the Central Block of concessions extends to the Northern Block including Payo 1.
“This massive halite layer is also highly significant,” he continues.
“Encountering this massive halite layer at Payo 1 is a positive indicator for encountering a Deep Sand Unit and further lithium mineralisation at depth in this new very large area.”
Drilling at SOZDD007 is on-going, at a current depth of ~310 metres in halite, with a target depth of ~600 metres below surface based on the interpretation of previously conducted geophysical surveys.
Further brine samples (at 233 to 257 metres and 281 to 305 metres) show increasing densities, with assays for these samples pending.
A drilling rig is now mobilising to commence infill drilling at drill hole 8 (SOZDD008, on the Chico I concession.
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.
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