Patagonia Lithium (ASX:PL3) has upgraded the inferred and indicated resource estimate for the Formentera Lithium Brine Project in Argentina by 319%.
The resource totals 551,400 tonnes of lithium carbonate equivalent @ 294 milligrams per litre (mg/L) of lithium and 894 mg/L of magnesium for 103,700 tonnes of lithium metal.
Patagonia says the specific yield increased by 248% t0 11.85% from 4.8% which is considered a key factor for lithium brine extraction and is amongst the highest values in the region.
The average lithium concentration has increased from 264 parts per million (ppm) to 294ppm – representing a 13% increase.
The company’s share price was up 5.26% to $0.040 as of 11.25am AEST today (14 July) on the back of the news.
Executive Chairman Phillip Thomas says this resource estimate confirms Formentera as one of the “best undeveloped projects” in Argentina.
“The substantial resource in each major parameter exceeds our expectations both in terms of lithium metal, specific yield and also in terms of the elevated concentration of lithium, leading us to believe Patagonia has a valuable project,” Thomas says.
“Considering we have drilled only four wells, there is still significant exploration and resource upside potential to expand this resource as we continue to drill out the high porosity zone to the south and the Cilon concession at depth to 600m.”
Thomas adds that the company will now progress exploration with well five at Cilon, complete its application for a demonstration plant and input this data into the upcoming Scoping Study.
Patagonia Lithium has two major lithium brine projects, Formentera and Cilon, located in the Salar de Jama, Jujuy province and Tomas III at Inchahuasi Salar in Salta Province of northern Argentina.
Global lithium extraction is forecast to grow by almost 14% annually over the outlook period, to reach over 1.8 million tonnes of lithium carbonate equivalent (LCE) by 2027.
Australia is expected to remain the leading lithium supplier to 2027. Its share of global lithium extraction is forecast to fall from 36% in 2024 to 31% by 2027, despite mine output growing 7% annually. However, some near-term production cuts are expected due to falling global lithium prices.
China and Argentina are also expected to significantly expand lithium extraction capacity over the outlook period.
Argentina’s global market share is expected to double to more than 10% of global lithium extraction by 2027, as a series of large brine operations come online. Low prices in 2024 and 2025 have led to several companies scaling back or suspending new developments.
Write to Aaliyah Rogan at Mining.com.au
Images: Patagonia Lithium
