Patagonia Lithium (ASX:PL3) Executive Chairman Phillip Thomas says the company is making progress on day six of drilling at the Formentera Lithium Project in Argentina, with the first packer assay test taken last week.
Three bottles of brine were collected to go to two different laboratories and one for retention by the company.
Thomas says the preparation that has been put into the campaign in October has “paid off” and it is operating according to budget and timetable.
“The core samples are predominantly clast-supported medium brown sands with subrounded quartz and sandstone clasts which are usually very porous. As we drill deeper, we expect the brines to concentrate in lithium with an increase in specific gravity,” he adds.
“In other wells such as JAM 24-03 it was around 200m. The porosity of the core has been outstanding to date.”
This news comes after Patagonia Lithium upgraded the inferred and indicated resource estimate for the Formentera Lithium Brine Project in Argentina by 319%, as previously reported.
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 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
