Rejoice: Lithium Energy hits rich brine in very first drill hole at hot Solaroz project

Lithium Energy is onto a winner after confirming a major new lithium discovery at its Solaroz brine in Argentina’s lithium triangle in its very first exploration drill hole.

Located next to $10 billion capped Allkem’s (ASX:AKE) Olaroz project and processing plant, initial assay samples from the first hole in a 10 hole maiden program returned lithium concentrations from conductive brines in the upper aquifer above 400mg/L.

The brine concentration is hosted in porous sandstone between 55-228m deep, with significant lithium grades coming prior to Lithium Energy (ASX:LEL) hitting its primary target zone in the Deep Sandstone lower aquifer.

Also encouraging is not just the grade of the lithium hit, but also the low magnesium to lithium ratio, both positive in relation to future processing.

Drilling is now advancing within the first hole to test the primary target beneath a thick mudstone unit located from 230m deep, a seal which isolates the upper from the interpreted lower aquifer.

LEL Chairman speaks

“To confirm the discovery of high concentrations of lithium in the brines in the upper aquifer of our first drill hole at Solaroz is a watershed moment for Lithium Energy,” LEL executive chairman William Johnson said.

“It further confirms the potential for the Solaroz Project to host a significant resource of lithium brines in what is probably the best location globally to have a lithium discovery.

“With assay results showing that lithium concentrations in this first hole increase at depth, the Company is now looking forward to assay results from sampling the target lower aquifer, as drilling continues to its target depth of 400 metres.”

Plan and execution 

The initial assay results from SOZDD001 are such a big win because they support the conceptual geological model LEL has formulated at Solaroz, based primarily on the neighbouring Allkem concessions.

It posits that the geological structures which host the lithium rich brines which are currently being mined by Allkem at the Olaroz Salar, extend under the Solaroz concession area.

The hole, within the Mario Angel concession at Solaroz, has reached a depth of ~250m and will be pushed beyond its initial ~300m target to ~400m at the basement of the lower aquifer based on a review of geophysical data.

Initial assays from 65-170m deep confirmed the brines in the upper aquifer with lithium concentrations of up to 416mg/L.

They are contained mostly in porous sandstones and fine gravels, with porosity and permeability levels favourable for brine extraction.

Importantly, the lithium concentration, conductivity and density increases at depth.

This is encouraging, the company said, because it indicates a hydraulically linked system where heavier brines which could host higher concentrations of lithium sink to the bottom of the aquifer.

It is a strong start to the maiden 10 hole program, designed to approach an exploration target of 1.5-8.7Mt of contained lithium carbonate equivalent at concentrations of 500-700mg/L lithium.

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.

The post Rejoice: Lithium Energy hits rich brine in very first drill hole at hot Solaroz project appeared first on Stockhead.

asx
lithium