Lithium Energy shares rise 9% after advancing drilling program at Solaroz Lithium Brine Project
Proactive Investors
Published Mar 21, 2023 13:56
Lithium Energy shares rise 9% after advancing drilling program at Solaroz Lithium Brine Project
Lithium Energy Ltd (ASX:LEL) shares have surged 9% intra-day to 61 cents per share after mobilising drilling rigs to the fourth and fifth diamond drill holes of its initial 10-hole, 5,000-metre drilling program at the Solaroz Lithium Brine Project in Argentina.
Solaroz is in the heart of South America’s world-renowned Lithium Triangle and is adjacent to or principally surrounded by lithium majors Allkem Ltd (ASX:AKE, OTC:OROCF, TSX:AKE) and Lithium Americas Corp (TSX:LAC, NYSE:LAC).
Solaroz drill hole locations in Olaroz Salar (adjacent to Allkem and LAC concessions).
The drilling of the fourth and fifth holes follows the significant lithium discoveries recently made by Lithium Energy at the first (on Mario Angel concession) and third (on Chico I concession) diamond drill holes at Solaroz.
Notably, the company encountered cumulative lithium brine intersections of up to 235 metres and lithium concentrations of up to 555 mg/ lithium with low Mg/Li ratios from the first and third holes.
Assays are still pending for the second hole (at Chico V concession).
The drilling results, when taken together with the interpretation of previously conducted geophysics, support the potential for the widespread occurrence of lithium brines across significant portions of the 12,000-hectare Solaroz concessions owned by Lithium Energy.
The positive total porosity and specific yield measurements together with low Mg/Li ratio are considered highly favourable for potential economic future brine extraction.
Diamond drill rig at Chico VI Concession.
The objective of the initial 10-hole, 5,000-metre drilling program is to define a significant maiden JORC resource of lithium at Solaroz.
Lithium Energy recently appointed consulting group Hatch to undertake a scoping study for the production of battery-grade lithium carbonate from the lithium-rich brines at Solaroz, with the results of the scoping study scheduled to coincide with the definition of the company’s maiden resource at Solaroz.
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