Mineral Exploration Company, Orocobre Ltd (ASX: ORE) has provided an update on the completion of pumping test activities which were undertaken at the Cauchari JV property located in Argentina.
As per the release, the 30-day constant rate pumping test which was undertaken at the Cauchari JV property was completed in mid-January. This test was conducted on well CAU07 which is in the NW Sector. The pumping test was carried out at a rate of 22 l/s throughout the test and the pumping rate was limited by the construction of the well. As per the announcement, the results of brine analyses over the 30 days averaged 650 mg/l Lithium and 4,970 mg/l K with Mg/Li of 2.2:1 and as per the company’s Managing Director Mr. Martín Pérez de Solay, these results have confirmed the excellent characteristics of the NW Sector for future brine production.
The company had collected Brine samples at regular intervals during the test. Additional samples of brine were also taken at depth specific intervals using a bailer device in the diamond hole drilled on the same platform as CAU07R. As per the results, the samples demonstrated no major variation during the test, and the samples reported concentrations of between 642 and 659 mg/l lithium. The samples taken during the pumping test were taken at the well head throughout the test and are considered to be representative of the brine pumped, which is homogenized as it is pumped from the hole. The brine samples showed consistency and suggested that the well has been adequately developed and that the samples are representative of the brine contained in the host sediments.
To drill the test production hole, Tricone drilling was used. Rotary drilling was also undertaken to install the pre-collars for the hole. During the rotary drilling, samples of the cuttings were collected and described and stored for reference.
Orocobre has informed that it is going to provide an updated resource estimation. The Updated resource estimate will now include all the information which was collected during the Phase II and Phase III exploration programs. The company is also going to provide a Preliminary design of production wellfields. The Preliminary design of production wellfields will be made using the outcome of the CAU11 pumping test and CAU07 pumping test which was recently completed.
As at 31 December 2018, the company had available cash of US$284 Mn which was US$24.7 Mn less than the September quarter. Recently, the company has appointed Mr. Martín Pérez de Solay to the Company’s Board as Managing Director (MD).
Meanwhile, in the past six months, the share price of the company decreased by 27.92% as on 31 January 2019. ORE’s shares traded at $3.205 (-3.754% intraday) with a market capitalization of circa $870.9 Mn as on 1 February 2019 (AEST 2:54 PM). It has 52 weeks high of $7.44 and 52 weeks low of $2.910.
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