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Patagonia Lithium Ltd (ASX:PL3) has revealed encouraging outcomes from its ongoing drilling at Well 8 JAM 26-08 within the Cilon project, situated in Argentina's Salar de Jama. The ninth packer test achieved a flow rate of 526 litres per hour at a depth of 257 metres, with specific gravity rising to 1.074 gm/cm³, signaling elevated total dissolved solids concentrations. These exploration efforts continue to highlight robust aquifer properties that Patagonia Lithium believes will underpin its lithium brine development ambitions in one of South America's premier lithium regions.
Key Points
- Patagonia Lithium Ltd (ASX:PL3) manages two significant lithium brine projects in Argentina's Salar de Jama and Incahuasi areas, along with five exploration concessions in Brazil covering over 52,000 hectares
- Drilling at Well 8 JAM 26-08 reached 257 metres depth, with the ninth packer test yielding a flow rate of 526L/Hr, marking the latest successful test interval
- Out of nine packer assay tests, seven were successful; the highest flow rate recorded was 705L/Hr between 126–137 metres
- Specific gravity increased to 1.074 gm/cm³ during the ninth test, electrical conductivity hit 130.1 microsiemens/cm, and total dissolved solids reached 65.1 parts per thousand
- Next operational target is drilling to 280 metres for the subsequent packer test, with a final depth goal of 600 metres
- An investor briefing is planned for 19 August 2026 via Zoom, where Executive Chairman Phillip Thomas will update on exploration progress
Well 8 JAM 26-08 Packer Test Confirms Strong Aquifer Flow Properties
Patagonia Lithium’s recent update confirms drilling at Well 8 JAM 26-08 has advanced to 257 metres, with the ninth packer test delivering a flow rate of 526 litres per hour from the 243–257 metre interval. Conducted from 6:00 pm to 9:30 pm, the test produced five 200-litre containers filled in approximately 22.8 minutes each on average. This significant result underscores the company’s assessment of lithium brine aquifer potential, as elevated flow rates indicate substantial porosity and transmissivity within the tested geological section.
The drilling program has yielded nine packer test results across various depths, with seven returning positive outcomes. Flow rates ranged from 285.7 to 705.9 litres per hour, the highest recorded at the 126–137 metre interval during the third test. Although the seventh and eighth tests were negative, Executive Chairman Phillip Thomas described these as beneficial, providing a natural cap to the aquifer. The ninth packer test results are deemed extremely positive, with drilling continuing toward the next test at 280 metres.
Increasing Specific Gravity and Dissolved Solids with Depth at Cilon
The ninth packer test revealed in-situ parameters indicating higher brine concentrations at deeper aquifer levels. Specific gravity reached 1.074 gm/cm³, up from 1.040–1.060 gm/cm³ in shallower intervals. Total dissolved solids measured 65.1 parts per thousand—the highest across all tests—while electrical conductivity rose to 130.1 microsiemens/cm, consistent with a trend of increasing brine concentration attributed to longer residence times and mineral dissolution at depth.
pH remained alkaline at 11.6 during the ninth test, with no evidence of freshwater intrusion, supporting the interpretation that volcanic leaching of feldspars and sericite influences brine chemistry. Temperature measured 12°C, typical for aquifer conditions at this depth. The aquifer cap above 226 metres, where tests seven and eight failed, acts as an insulating layer preventing dilution by freshwater. These findings reinforce the company’s focus on the 250 to 400+ metre zone as the primary target for lithium and dissolved mineral concentration.
Geological Analysis of Well-Sorted Sands and Mineralogy
Core samples from 236–257 metres show well-sorted, unconsolidated fine to medium brown sands with high visual porosity. Mineralogy is dominated by subrounded quartz (78–82%), with subrounded lithic fragments (13–17%) and opaque minerals such as magnetite and ilmenite (2–3%). This distal alluvial fan sand body lacks carbonate cementation, a factor positively influencing the high flow rates observed in the ninth packer test. No reaction to hydrochloric acid was detected, confirming absence of carbonate minerals at this depth.
The high porosity and transmissivity of these sands likely contributed to the strong flow rates. Core samples are undergoing laboratory porosity testing to complement Borehole Magnetic Resonance and Gamma measurements taken during drilling. The company cautions that visual mineral estimates are not substitutes for lab analyses regarding economic concentrations or impurities. Brine samples from the ninth test have been submitted for lithium assay, with results expected within three to four weeks.
Patagonia Lithium’s Capital Structure and Board Composition
Patagonia Lithium Ltd has 241.1 million shares issued, alongside 29.4 million unquoted options and 25.0 million unquoted performance rights. The board includes Executive Chairman Phil Thomas, Non-Executive Directors Rick Anthon and Pablo Tarantini, and Co-Secretary Jarek Kopias. Incorporated in Australia, the company’s registered office is in Moorabbin, Victoria. Listed on the ASX since 31 March 2023, Patagonia Lithium conducted surface sampling and magnetotelluric geophysics before initiating drilling.
The board oversees exploration across Argentina and Brazil. Executive Chairman Phillip Thomas leads strategic and operational management, with non-executive directors providing independent oversight aligned with exploration and development goals.
Diversified Lithium Projects in Argentina and Brazil
Patagonia Lithium’s portfolio includes two major lithium brine projects in Argentina’s lithium triangle: the Formentera/Cilon project in Salar de Jama (19,500 hectares) currently hosting the Well 8 JAM 26-08 drilling, and the Tomas III project at Incahuasi Salar (580 hectares). These projects position the company within a globally significant lithium production region alongside established producers.
In Brazil, Patagonia Lithium holds five exploration concessions totaling 41,746 hectares targeting ionic rare earth element clays, niobium, antimony, and lithium in pegmatites. The company’s concessions border Brazil’s largest niobium producer in Goiás state, which produces 10,024 tonnes annually. This geographic diversification across two key South American mineral provinces supports multiple lithium and critical mineral development opportunities, with a strategic focus on lithium brine in Argentina and ionic REE clays and pegmatite-hosted lithium in Brazil.
Drilling Depth Targets and Geophysical Site Selection
Well 8 JAM 26-08 is currently drilled to 257 metres, aiming for a final depth of 600 metres. The site was selected using magnetotelluric (MT) geophysics, with MT survey data guiding the well placement. The well collar is located at 4093.7 metres elevation (POSGAR 94 coordinate system, strip 3, zone 19S, East UTM 707530.68, North 7410278.49) and drilled vertically (dip -90°, azimuth 0°).
The company identifies the 250 to 400+ metre interval as the main aquifer zone for lithium and dissolved solids concentration. The next packer test is planned at 280 metres as drilling advances toward 600 metres. This phased testing approach enables characterization of aquifer properties at successive depths, optimizing identification of lithium-rich zones. MT geophysics is a standard exploration tool aiding efficient targeting of high-potential brine intervals.
Upcoming Investor Briefing and Ongoing Updates
Patagonia Lithium will hold an investor briefing on Wednesday, 19 August 2026, at 12:30 pm AEST via Zoom. Executive Chairman Phillip Thomas will provide updates on exploration progress, drilling results, and geological interpretations from the Well 8 JAM 26-08 program. Interested shareholders and investors can register via the company’s website. This briefing follows completion of the ninth packer test, facilitating timely communication of operational milestones.
Additional updates are available on patagonialithium.com.au, including the Executive Chairman’s blog, news releases, and videos. The company maintains active social media channels on X (formerly Twitter), Instagram, Facebook, LinkedIn, and YouTube, regularly sharing drilling progress and corporate developments. A YouTube link offers further lithium exploration video content, providing multiple platforms for stakeholders to stay informed between formal announcements.
Focused Lithium Brine Exploration in South America’s Lithium Triangle
Patagonia Lithium’s exploration centers on lithium brine deposits within Argentina’s Salar de Jama salt flat, part of the South American lithium triangle encompassing Argentina, Bolivia, and Chile. This region has attracted significant global lithium exploration due to rising demand for battery electric vehicles and energy storage. The company’s emphasis on brine-hosted lithium aligns with the economic advantages of extracting lithium from naturally concentrated brines versus hard-rock sources.
The Well 8 JAM 26-08 drilling phase aims to characterize aquifer physical, chemical, and flow properties. Successful packer tests and strong flow rates confirm identification of aquifer intervals with sufficient porosity and transmissivity to support potential lithium extraction. Increasing dissolved solids concentrations and stable alkaline pH with depth corroborate the geological model for lithium enrichment, laying groundwork for further exploration and economic evaluation of the Cilon project.
Specific Gravity Trends Highlight Increasing Brine Concentration
The ninth packer test recorded the highest specific gravity to date at 1.074 gm/cm³, up from 1.040 gm/cm³ at the shallowest interval (66–74 metres). Specific gravity rises with dissolved salt concentration, with pure water at 1.000 gm/cm³. Total dissolved solids peaked at 65.1 parts per thousand during this test, the highest across all nine intervals.
Patagonia Lithium interprets this upward trend as reflecting longer brine residence times and progressive evaporitic mineral dissolution with depth. This supports the thesis that the key lithium concentration zone lies between 250 and 400+ metres. The positive correlation among depth, specific gravity, and dissolved solids indicates the drilling program is entering higher mineral concentration zones, justifying continuation toward the 600-metre target to fully characterize aquifer properties and identify peak lithium zones.
