Patagonia Lithium (ASX:PL3) has released a maiden JORC inferred mineral resource estimate of 3.8 million tonnes of LCE based on an in-situ lithium resource of 717,000 tonnes for its Formentera Lithium Brine Project in Argentina.
The MRE includes 173,000 tonnes of lithium carbonate equivalent with calculated mean sample values of 461.6 mg/L for lithium, and 945.7 mg/L for magnesium were applied as the default values for unestimated ‘high porosity salar’ blocks. Calculated mean sample values of 186.4 mg/L for lithium, and 729.8 mg/L for magnesium were applied as the default values for unestimated salar blocks in the block model.
Patagonia says lithium grades as high as 1,122 parts per million (ppm) were measured in the subsurface and 580ppm at 360m depth in drillhole JAM-24-01.
Out of the total MRE, 85.82% of the brine volume is above a 100ppm lithium cut-off grade, of which the main salar domain comprises 86.07% above the cut-off grade, and the high porosity salar domain comprises 100% above.
An Ekosolve 1,000tpa Li2CO3 demonstration plant will be constructed during 2025, with waste brine being deposited into the lagoon at the western end of the project. This demonstration plant will later be expanded to 10,000tpa once Jujuy Mines Department approval is received.
Patagonia Lithium notes the resource is within a 1,952 hectare area with high porosity zones close to the demonstration plant location.
Executive Chairman Phillip Thomas says the robust maiden resource confirms the Formentera Project as one of the “best undeveloped projects in Argentina”.
“This maiden resource exceeds our expectations both in terms of total volume, specific yield, and also in terms of the high concentration of lithium, leading us to believe Patagonia has a valuable project to be developed,” Thomas says.
The company will now progress its exploration, application for a demonstration plant, a Scoping Study, and then Definitive Feasibility Study (DFS) with results from further exploration.
Thomas notes that the company has the added benefit of proven Ekosolve direct lithium extraction technology that has a short construction time and a proven extraction of more than 92% lithium.
“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 highly porosity zone and the Cilon concession,” he says.
“These results will allow Patagonia to proceed to the next stage of our flagship project which is submitting the 1,000 tonne Ekosolve demonstration plant permit application, drilling exploration well five and planning production wells when the BMR surveys are finished.”
To date, the company has completed four drillholes in the Formentera concession, as part of the initial 10-hole drilling program. The program is designed to target areas identified as having thick sequences of brine in porous aquifers, based on the developing geological model and geophysical surveys.
Patagonia Lithium says drilling has encountered major sand and gravel sequences, partially related to the current alluvial landform.
The Formentera Project, covering 19.54km2, is located in the Jujuy Province of Argentina. The paved international highway (National Route 52 – RN52), linking San Salvador de Jujuy to ports in the Antofagasta region of Chile, passes 1km west of the project and continues to the town of Jama 10km away.
Write to Aaliyah Rogan at Mining.com.au
Images: Patagonia Lithium
