Patagonia Lithium (ASX:PL3) is rolling out an ambitious growth strategy, with Executive Chairman Phil Thomas confirming a sequence of drilling, seismic, engineering, and permitting milestones that will fast-track the company towards a 2026 development decision.
The company is developing its Formentera Lithium Brine Project in the Jujuy province of Argentina in the ‘lithium triangle’. The project covers 19,540 hectares (19.54km2) with two mining leases owned by Patagonia’s Argentine subsidiary Patagonia Lithium Argentina.
Speaking to Mining.com.au, Thomas says an opportunity to secure a deep-capacity drill rig is kicking off the next growth phase.
Patagonia Lithium is drilling Well 5 as a rig recently became available that can drill to 600m depth at PQ diameter.
Well 5 is just the beginning, as Thomas tells this news service Patagonia will then move immediately into drilling an additional well to convert its resource to measured and indicated status – a key de-risking milestone that will underpin a Scoping Study.
The company will also conduct a seismic survey to determine the depth of the salar basement, with the geophysical data being incorporated into both the mineral resource estimate (MRE) and scoping-level design.
“This data will be included in the Scoping Study,” Thomas confirms, adding that in 2026 Patagonia will seek approval to build a pilot plant.
“We will complete an updated mineral resource estimate to measured and indicated status, complete the Scoping Study, finalise the drilling program with possibly two more wells which will be production wells, and arrange finance or subscriptions for the development of the demonstration plant,” says Thomas.
This staged development approach allows the company to de-risk the resource, prove the extraction technology at pilot scale, and secure funding for commercial rollout.
As such, Patagonia is already thinking like a developer. Engineering drawings at Class C level are underway for an Ekosolve direct lithium extraction (DLE) plant capable of producing roughly 1,000 tonnes per year.
The mass balance and flow sheet for the demonstration plant has been completed and only requires final design and costing. This design will first feed into the Scoping Study, and later advance into a Definitive Feasibility Study (DFS) in 2026.
By year-end, Patagonia Lithium aims to deliver a range of milestones including drilling and pumping tests of Cilon 5 and Formentera 6, completing seismic and BMR well surveys, lodging an application for a 2 megalitre/day demonstration plant pumping from four wells, and publishing the Ekosolve pilot plant design.
With lithium sentiment expected to strengthen as EV penetration increases and DLE technologies improve recovery and economics, Patagonia Lithium is positioning itself to capture the rebound.
Thomas says a deeper drilling program, geophysics, engineered plant design, and regulatory progress provide a clear pathway from salar to production.
The Formentera Project is the company’s flagship project and is prospective for lithium and borates. It is located in the municipality of Coranzuli in the Jujuy province. An application with an environmental base line study has been lodged for an exploration licence and drill program in the Susques department, Jujuy Province, northwest of Argentina.
It is located in one of the largest depressions of the Puna, which forms one of the largest salar basins covering more than 500km2 in north-western Argentina.
Write to Adam Orlando at Mining.com.au
Images: Patagonia
