Calgary-based Lithium Chile Inc. (TSX-V: LITH) reported favourable results from the latest drill hole at its flagship Arizaro lithium brine project in Argentina on Wednesday.
To date, the company has completed a preliminary economic assessment (PEA), three production holes and seven exploration holes. It says it has a fresh water well with an initial usage permit too.
The new diamond drill hole intercepted substantial brine formations in an area that hadn’t been previously drilled. The company went 606 metres below the surface with it and encountered favourable results at a depth of 200 metres. Substantial quantities of lithium were also found at a depth of 50 metres.
Lithium Chile discovered brine with 180 milligrams of lithium per litre 50 metres down. Two hundred metres below the surface, the junior obtained samples yielding 690 mg/L.
Due to the variability of lithium grades encountered, the individual overseeing the project has recommended that additional testing be completed. The site contains an estimated 1.5 million tonnes of indicated lithium carbonate equivalent.
“The results from this new hole signify an important step in our strategic roadmap, propelling us closer towards maximizing the full potential of our claims,” President and CEO Steve Cochrane said. The company has no debt and a cash balance of C$31 million.
“As we continue to progress towards a revised resource report and feasibility study to support production economics, we remain steadfast in our mission to add value and realize the full potential of the Arizaro project,” José de Castro, President for South America, said. The junior miner currently has 12 Chilean projects, but the Arizaro operation in Argentina’s Salta province is its flagship asset.
Global One Media takes a deep dive into Lithium Chile's new Preliminary Economic Assessment (PEA) from the Salar de Arizaro Lithium Project with CEO and President Steve Cochrane.
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— Lithium Chile Inc. (@ChileLithium) August 29, 2023
Read more: Lithium South near completion of production well and economic assessment at flagship operation
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Salta drilling proves successful for others
The explorer NOA Lithium Brines Inc. (TSX-V: NOAL) (FSE: N7N) has had success with recent drilling in Salta too. NOA intercepted an average of 619 mg/L over 400 metres with its diamond drill hole last month.
Last spring, Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) reported core samples with an average grade of 1,176 milligrams of lithium per litre at its Hombre Muerto North project in the province. Lithium South just partnered with the South Korean major Pohang Iron and Steel Company (POSCO) (KRX: 005490) to accelerate development of that project.
Despite Argentina’s struggling economy, the Salta, Catamarca and Jujuy provinces continue to attract major investments from domestic and international companies.
Although top producers like Albemarle Corporation (NYSE: ALB) have been cutting costs and laying off employees due to the current low price of the metal, the nation’s annual exports are expected to increase immensely in the years to come.
“While the pricing environment has softened for the moment, we should not lose sight of the fact that we continue to see significant long-term growth in demand for limited supply,” Albemarle’s CEO Kent Masters recently said.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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