Lithium Energy Ltd (ASX:LEL) has intersected lithium-rich mineralisation in the upper aquifer of the newly drilled Payo 1 concession at Solaroz, grading up to 386 mg/L lithium from 209 to 233 metres depth in a highly encouraging initial assay from the project at the heart of South America's renowned Lithium Triangle.
The company is still drilling for further brine samples at depths of 233 to 257 metres and 281 to 305 metres, where brines are reportedly showing increasing densities, which indicate potential for higher lithium grades. Assays are pending for these samples.
Lithium Energy considers this a significant milestone, confirming the presence of lithium mineralisation in the 1,973-hectare Payo 1 concession, part of the Northern concession block which has not yet been drilled and was not included in the 3.3 million tonnes lithium carbonate equivalent mineral resource estimate.
Potential for “significant” new lithium target
“We are extremely pleased to have encountered lithium mineralisation at drill hole 7 In the Payo 1 concession at Solaroz, as this highlights the potential for further expansion of lithium mineralisation at the Solaroz Lithium Project – which already holds a significant and strategic lithium resource,” Lithium Energy executive chair William Johnson said.
“The Payo 1 concession is located north of the main Solaroz concession area and has previously not been drilled. Payo 1 was therefore not included in our maiden mineral resource estimate.
“The large size of Payo 1 (1,973 hectares) indicates that the potential now exists for a significant amount of new lithium mineralisation to be delineated here.
“Furthermore, drilling at Payo 1 has now encountered a massive halite layer, which is highly significant. Previous drilling by the company at Solaroz indicates that the halite layer typically acts as a ‘cap’ above the company’s primary target Deep Sand Unit, where the highest grades and volumes of lithium are found.
“Encountering this massive halite layer at Payo 1 is a positive indicator for encountering a Deep Sand Unit and further lithium mineralisation at depth in this new very large area.”
Geophysical logs
The company has also completed geophysical logging of drill holes 4 and 6.
Drill hole 4 assays confirmed a total 473.5-metre intersection of lithium-rich brines (across the upper and lower aquifers) with concentrations of up to 508 mg/l lithium.
Drill hole 6 assays registered a 356-metre intersection of lithium-rich brines (across the upper and lower aquifers) with concentrations of up to 594 mg/l Lithium.
The drill rig is now mobilising to drill hole 8 with a target depth of 550 metres.