Lithium Energy Ltd (ASX:LEL) has returned the highest lithium concentrations to date in assays from its flagship Solaroz Lithium Brine Project in Argentina.
The company is particularly excited about assay results from drill hole SOZDD006, which reveal a lithium concentration of 594mg/l.
Investors have also welcomed the results with shares as much as 4.93% higher to $0.745.
Strategically positioned
The Solaroz Lithium Brine Project is strategically positioned next to Allkem's Lithium Facility in the Salar de Olaroz basin, which is part of South America’s famed 'Lithium Triangle'. The region is renowned for its abundant lithium resources, making it a coveted location for lithium mining and extraction.
SOZDD006, which has been completed to a depth of 623 metres, encountered an extensive 356-metre section of lithium-rich brines across upper and lower aquifers.
The upper aquifer alone yielded a significant 131-metre intersection of lithium-rich brines with concentrations of up to 354mg/l, found in brine-hosting unconsolidated sandstone units and fine gravels.
The transition from the upper to lower aquifers was identified by a 22-metre clay layer encountered at a depth of around 265 metres.
Impressive concentrations
The lower aquifer, known as the Deep Sand Unit, proved to be highly promising, with 225 metres of lithium-rich brines intersected from about 287 metres. The lithium concentrations in this section reached an impressive 594mg/l.
Lithium Energy executive chairman William Johnson said: “We are very pleased with the results recorded from the recently completed sixth drill hole, with the lower aquifer returning the highest lithium concentration grades seen so far at the Solaroz Project.
“These results give us confidence in the potential to upgrade the existing 3.3 million tonnes LCE mineral resource both as to tonnage and resource confidence.
“Drilling is ongoing with Hole 7 underway, with this first step-out drill hole targeting the previously undrilled Northern Block of concessions at Solaroz. We will update shareholders as this drilling progress and gives us a better understanding of this prospective area.”
Potential boost to MRE
The assay data from SOZDD006 was not available at the time of the recently announced maiden inferred mineral resource estimate (MRE).
The full assay and geophysical hole logging results from this groundbreaking hole will now be used to review and potentially upgrade the MRE to the indicated mineral resource category.
Solaroz Lithium Brine Project's initial maiden inferred MRE stands at 3.3 million tonnes of lithium carbonate equivalent (LCE), with a high-grade core of 1.34 million tonnes of LCE boasting an average lithium concentration of 405mg/l at a 350mg/l lithium cut-off grade.
The company is in the midst of progressing with drilling at SOZDD007, which represents a crucial step-out hole aimed at exploring the previously undrilled Northern Block of concessions at Solaroz.
This exploration could lead to further significant discoveries, expanding the project's potential and enhancing its position within the highly competitive lithium market – the company will update the market when it knows more.