FULL DISCLOSURE: This is sponsored content for Lithium Chile.
Just weeks after delivering a positive preliminary economic assessment for its Arizaro Project in Argentina, Lithium Chile (TSXV: LITH) has begun work on a pre feasibility study that it expects to deliver in April 2024.
The study is to be conducted by Ausenco Engineering, who was contracted in early September to begin work on advancing the economics and engineering of the project for the study. Further exploratory work has been conducted at Arizaro in connection with the study as well as the company looks to expand the scope of the project.
Hole ARDDH-02-8 was drilled to a depth of 538 metres on the northern portion of the project, intersecting a sandy formation at a depth of 487 metres. Sampling conducted on site indicated lithium grades of between 297 mg/l and 319 mg/l over a 51 metre span. Lab results so far have indicated a 1.5 metre intersection of 282 mg/l lithium and a 1.5 metre span of 300 mg/l lithium, with further sample results pending.
The hole notably was conducted outside of the current resource model, leading to the potential for expansion of the current mineral resource estimate.
Hole ARDDH-03-7 meanwhile was drilled to a depth of 600 metres, intersecting 120 metres of brine bearing formation sands at a depth of 480 metres which carried on through to the end of the hole. A clay band however swelled, prevent sampling and leading to the need for re-entry. After re-entry is completed, Lithium Chile intends to install casing and collect sampling.
Two more production wells are intended to be conducted at Arizaro, AR-04 and AR-05, which will be used for additional data for the pre-feasibility study as well as for future production. Prior to these two wells however, the drill rig is set to drill two water production wells at the firms Chascha Sur freshwater concession, which will provide the data necessary for further water usage permits and to secure water production for a proposed direct lithium extraction production facility.
WATCH: Lithium Chile: US$1.8 Billion Pre-Tax NPV(8%) At Arizaro – With Michelle DeCecco
“We are very pleased with the speed of the advancement of our Arizaro project to the pre-feasibility stage. The results from the two new diamond drill holes drilled in previously unexplored areas of our Arizaro property point to the potentiality of a significantly larger resource,” commented CEO Steve Cochrane.
Exploratory work is also being conducted at Lithium Chile’s assets in Chile. At Molle Verde, a third hole has been completed, with a fourth to get underway in the near term. The first three wells encountered brine, two of which demonstrated “exceptional porosity.”
While sampling is being conducted on these holes, exploration will be conducted at the Aguilar property, including a sampling grid and TEM geophysics to determine where to conducted three exploratory holes. The drilling of these holes are expected to begin by year end.
Lithium Chile last traded at $0.65 on the TSX Venture.
FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
