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Sunday, May 19, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Lithium

Lithium South expands well installation program at Hombre Muerto North

The company’s technical team is incorporating the expansion into an environmental impact report it is preparing

Lithium South expands well installation program at Hombre Muerto North
Hombre Muerto North. Photo: Lithium South

In response to favourable progress at its flagship Argentina brine project, Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) will be significantly expanding its well installation program.

Lithium South just announced that it would be installing an additional 400-metre-deep well at the Hombre Muerto North operation’s largest claim block: Alba Sabrina.

The company will put three more in the adjacent Viamonte and Norma Edith blocks as well. Brine produced from those claim blocks is being split 50/50 with South Korea’s major operator Posco Holdings Inc (KRX: 005490).

The expansion was inspired by recent success with the first pumping well at Alba Sabrina installed last month. Lithium South says it cleared the well of sediment, which led to the flow of clear brine with desirable artesian characteristics.

This achievement suggests potential for enhanced brine extraction rates, the company says.

“These developments on the Alba Sabrina claim block could potentially enhance our operational capacity,” President Adrian Hobkirk said.

Read more: Lithium South explores alternative production methods at Hombre Muerto North

Read more: Lithium South completes pumping test in Alba Sabrina Tenement

Lithium South prepares Environmental Impact Report

The company’s technical team is currently writing up a biannual environmental report on Hombre Muerto North. It will be submitted by month end. That report will factor in Lithium South’s expanded drilling plans.

Because of the recent success at the project, the company has agreed to install an 80-kilowatt pump rather than the 50-kilowatt pump originally planned. It will be capable of extracting brine at a volume of 40 to 50 litres per second.

The lithium producer is in the midst of a long-term pumping test at the site.

“The completion of this pumping test, anticipated by the end of May, will provide critical technical insight into the capacity potential of this area of the salar,” Hobkirk said.

Lithium South recently started pioneering alternative lithium extraction methods at Hombre Muerto North. The company began producing a highly-concentrated lithium chloride brine solution and a bulk lithium carbonate product in early April.

“Exploring these innovative production methods allows us to future-proof our project and potentially tap into more lucrative markets,” Hobkirk stated.

A recent preliminary economic assessment indicated that the company’s operation is valued at C$1.25 billion. It is expected to have a 31.6 per cent internal rate of return.

Hombre Muerto North is situated next to POSCO’s US$4 billion project and Arcadium Lithium plc’s (NYSE: ALTM) Sal de Vida operation.

Lithium South’s transition from exploration and resource development to commercial production continues to go smoothly.

 

Lithium South Development Corporation is a sponsor of Mugglehead news coverage 

 

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