C29 Metals (ASX:C29) reports it is preparing to start a maiden drilling program at the Pocitos 7 Lithium Project located within Argentina’s Salta Province.
The company says it has secured a drilling contractor and has received all regulatory notices to complete the maiden reconnaissance exploration wells over the Salar, and it has permitted up to 5 holes with an initial 3 to 4 diamond holes anticipated to be drilled during this initial program.
It further states these holes have been designed to test the hydrogeological conditions of the ‘significant’ low-resistivity zone at depth which were identified using transient electromagnetic vertical electrical surround (TEM-VES) profiles, and C29 interprets these areas as being a ‘large’ aquifer hosting the targeted lithium-charged brines.
C29 Metals Executive Director Mark Major said the company is very fortunate to have secured a drilling contractor with extensive experience in the salars for its maiden drilling program.
“This intense program will allow us to validate the lithium brine potential for 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 2 to 3 years. We are looking forward to commencing drilling as soon as possible and will keep the market updated with the progress.”
C29 reports geochemical samples of the brines will be taken from all aquifers to confirm the lithium prospectivity and provide adequate sample for processing via the Ekosolve DLE technology process, and it also envisages these holes will help establish a JORC compliant mineral resource estimate (MRE) by mid-2023.
The company secured an option to acquire 2 prospective lithium bearing projects within the Pocitos Salar in October this year, and C29 states it is advancing its due diligence processes and has secured regulatory permitting with all the appropriate groups to commence drilling, and it has also secured a diamond drill rig to commence drilling next month.
C29 also notes 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.
It considers Ekosolve to be superior to older solar evaporation methods as it eliminates the need for solar evaporation ponds resulting in a smaller operational footprint, as well as positive water balance returning waters to the salar and the potential for a reduced capex requirement.
C29 Metals is an emerging copper-gold and lithium explorer focused on its portfolio of projects across Australia and Argentina.
Its assets include the Sampsons Tank and the Reedy Creek Project in New South Wales, the Torrens IOCG Project in South Australia, the Stadlers Project in Western Australia, the Mayfield Mt Isa Copper-Gold Project in Queensland, and the Salar de Pocitos Project in Argentina.
Images: C29 Metals Ltd
