C29 Metals Ltd (ASX:C29) is trading higher after tasting success with its maiden drill hole at Pocitos 7 within the Pocitos salar in the lithium-rich province of Salta, Argentina, intercepting a brine aquifer zone of at least 30 metres.
The hole, DDH1, was completed at 420 metres with a packer test intercepting a deep aquifer from around 370 to 400 metres.
Shares higher
A flow test was conducted through a 49mm pipe with a submersible pump and this achieved a pumping rate in excess of 2,000 litres an hour.
Investors have responded positively to the drilling success with C29 shares as much as 42.11% higher in early ASX trade to $0.27.
“Healthy pump rate”
Director Jeremy King said: “We are extremely pleased to intercept brines and have hit a 30-metre plus aquifer zone at Pocitos 7 and have such a healthy pump rate particularly given the size of the pipe and pump utilised.”
Brine samples were obtained over a three-hour pumping period with separate sample lots sent to SGS and Alex Stewart laboratories in Salta for assay with blanks and standards.
A sample was also sent to the University of Melbourne for testing using the Ekosolve™ direct lithium extraction process that the company has licensed.
Laboratory assay results are expected in 7 to 14 days.
Toward resource estimate
"The team is currently conducting SG measurements on the brine and we await the laboratory analysis to determine lithium content,” King said.
"Subject to those results, we intend to continue our exploration program with a view to rapidly establishing a mineral resource estimate at Pocitos 7.”
Core tray showing transition from clays to grey porous sand units.
Transition at depth
Technical consultant to the company for Pocitos 7, Phillip Thomas, said that the core transitioned from fine clays to a combination of halite and sands at the 350-metre mark and became coarser and more porous as the hole approached 400 metres with interbedding evident.
A second hole, DDH2, is being planned and may be supplemented with an audio telluric (CSAMT) geophysics survey that will penetrate down to 500 metres to ensure that this hole is optimally located.