Battery minerals developer Lithium Energy (ASX:LEL) is looking to usher in a Scoping Study for its flagship Solaroz Lithium Brine Project in Argentina as ‘major’ electric vehicle (EV) third parties line up.
Lithium Energy reports study work completed to date has been undertaken by professional services firm Hatch, and confirms the suitability of conventional solar pond evaporation as a development pathway for the project.
Studies also indicate the project is also suitable for direct lithium extraction (DLE), therefore putting Lithium Energy in an ‘excellent’ position of having ‘significant’ optionality with regard to the choice of development alternative for the project.
It is believed this will provide the ‘significant’ benefit of having multiple potential development pathways, says the $56.78 million market capitalisation company.
As a result, the company notes multiple third parties active in the electric vehicle (EV) battery sector have approached Lithium Energy seeking strategic partnership or investment opportunities.
The company also notes this study is being undertaken in parallel to the resource definition drilling and evaluations, which in June this year delivered an initial maiden JORC inferred Mineral Resource Estimate (MRE) of 3.3 million tonnes (Mt) of lithium carbonate equivalent (LCE) at Solaroz.
It is Lithium Energy’s current goal to update a portion of the MRE to a JORC indicated level and allow the release of ‘robust’ study details, including proposed production details and associated financial information, for Q4 this year.
A program of further testwork and detailed studies to finalise evaluation of the relative merits of each technology, prior to finalising the preferred development pathway for Solaroz.
Lithium Energy is an ASX-listed company focused on developing its flagship Solaroz project in Argentina, as well as its Burke and Corella Graphite projects in Queensland, Australia.
Solaroz is strategically located within the Salar de Olaroz Basin in South America’s “Lithium Triangle” in northwest Argentina, and comprises 12,000 hectares of ‘highly prospective’ lithium mineral concessions.
The company had $8.976 million cash and cash equivalents at hand as of 30 June 2023, following the completion of a $6.4 million share placement in June this year, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Lithium Energy
