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Highlights
- Significant Resource Estimate: Maiden Inferred Mineral Resource Estimate (MRE) of 3.8 million tonnes of Lithium Carbonate Equivalent (LCE), including 173,000 tonnes in free-flowing and capillary areas.
- Strategic Lithium Asset: The Formentera Project, located in Argentina's lithium triangle, demonstrates high-grade lithium concentrations with grades up to 1,122 ppm.
- Market Impact: Patagonia Lithium’s share price surged 31% to 11 cents following the announcement on January 22, 2025.
Patagonia Lithium Ltd (ASX:PL3) has released a maiden Inferred Mineral Resource Estimate (MRE) for its Formentera Lithium Brine Project in the Jujuy province of Argentina, one of the world’s most prolific lithium-producing regions, commonly referred to as the “lithium triangle.”
The MRE, conducted in compliance with JORC standards, outlines 3.8 million tonnes of Lithium Carbonate Equivalent (LCE), with an in-situ lithium metal resource of 717,000 tonnes. This is based on a lithium metal-to-lithium carbonate conversion factor of 5.323.
Resource Highlights
- The estimate includes 173,000 tonnes of LCE in free-flowing and capillary areas, providing an initial 15-year mine life at a production rate of 10,000 tonnes per year.
- Lithium concentrations in the project area are notably high, with grades reaching up to 1,122 ppm lithium in subsurface samples and 580 ppm lithium at 360 meters depth, as observed in drill hole JAM-24-01.
- The MRE covers a 1,952-hectare area with high-porosity zones near the proposed demonstration plant site.
The initial MRE shows that 85.82% of the brine volume is above the 100 ppm lithium cut-off grade (COG). This includes 100% of the high-porosity salar domain, making it a highly strategic asset with substantial economic potential.
Exploration and Development Plans
Patagonia has outlined an ambitious plan to further enhance the resource and transition towards production:
- Infill Drilling and Surveys: Planned drilling at the Cilon concession, where sub-surface samples of 1,122 ppm lithium were recorded, aims to upgrade the resource estimate. Additional surveying using Differential Global Positioning System (DGPS) and LiDAR technologies is also planned.
- Demonstration Plant Application: With the maiden MRE completed, the company is preparing the application for a demonstration plant, a critical step towards commercialization.
- BMR Surveys: Borehole Magnetic Resonance (BMR) surveys will be conducted to refine the understanding of porosity and further upgrade the resource classification.
Strategic Importance of Formentera Project
The Formentera Lithium Brine Project is strategically located within Argentina’s lithium triangle, a region renowned for hosting some of the world’s most significant lithium resources. The project stands out for its high porosity zones, which enhance lithium recovery potential.
Patagonia noted that the project’s exceptional lithium grades, coupled with favorable geology, make it a highly competitive asset. The ability to achieve “Ore to Lithium Carbonate” efficiencies from high-grade brine further solidifies its economic and operational viability.
Market Reaction
The announcement of the maiden resource estimate triggered a surge in investor confidence. As of January 22, 2025, Patagonia Lithium’s share price had jumped 31% to 11 cents, reflecting strong market optimism about the project’s potential.
