C29 Metals Ltd (ASX:C29) is progressing the Pocitos salar drilling program at the Pocitos 7 Project in Argentina’s Salta Province, part of the world-renowned South American Lithium Triangle.
Regulatory approvals are in and the company has secured a drilling contractor to complete the maiden reconnaissance exploration wells at the salar.
December diamond drilling
Drllling of the up-to-five-hole program is on track to kick off in December when the company will start with three or four diamond drill holes to test the hydrogeological conditions of a significant low-resistivity zone at depth.
The zone was identified using TEM-VES (transient electromagnetic vertical electrical sounding) profiles.
These areas are interpreted as being a large aquifer hosting the target lithium-charged brines.
The company says these holes will help establish a JORC-compliant mineral resource estimate by the middle of 2023.
C29 will take geochemical samples of the brines from all aquifers to confirm lithium prospectivity, which will be processed using Ekosolve™ DLE technology.
Drilling to start on prospective Pocitos 7
“We are very fortunate to have secured a drilling contractor with extensive experience in the salars for our maiden drilling program,” said executive director Mark Major.
“This intense program will allow us to validate the lithium brine potential of the Pocitos 7 project. It will also allow us to rapidly advance the project towards economic studies once we can confirm the viability of the DLE process, all major milestones for the company as we progress this opportunity.
“Our aim is to consider as much of the technical work during the option period which will help support the robust business case already predicted.
“It’s a very exciting time for the C29 Metals shareholders as the company is still very undervalued given the project’s value proposition, lithium demand and the potential to fast track the development using a viable DLE process.
“This should allow the company to potentially enter the supply market within two to three years. We are looking forward to commencing drilling as soon as possible and will keep the market updated with the progress.”
Long-term lithium demand fundamentals
C29 believes the Pocitos projects have the potential to become a long-life, low-cost producer of battery-grade lithium carbonate using an emerging direct extraction technology such as Ekosolve™.
These direct extraction methods are considered superior to older solar evaporation methods as they eliminate the need for solar evaporation ponds, resulting in a much smaller operational footprint, positive water balance that returns waters to the salar and a considerably reduced capital input.
About Pocitos 7
In October 2022 the company secured an option to acquire two highly prospective lithium-bearing projects within the Pocitos salar in the mining-friendly Salta Province, Argentina.
The project is close to established infrastructure, including national road, power and rail with direct link to a major port facility.
The company is advancing its due diligence processes and has secured regulatory permitting with all the appropriate groups to commence drilling.
It has also secured a suitable diamond drill rig and associated equipment to begin drilling in December.