Patagonia Lithium Ltd Stock Market Press Releases and Company Profile

With Substantial Upgrade Upside on upcoming Drilling

Significant Maiden JORC Inferred MRE Lithium Resource
Significant Maiden JORC Inferred MRE Lithium Resource

Sydney, Jan 22, 2025 AEST (ABN Newswire) - Patagonia Lithium Ltd (googlechartASX:PL3) is pleased to report a maiden Inferred Mineral Resource Estimate (MRE) statement for its Formentera Lithium Brine Project (the Project) in the Jujuy province of Argentina in the "lithium triangle". The MRE detailed in Table 1 below* includes 173,000 metric tonnes (t) of lithium carbonate equivalent (LCE) with calculated mean sample values of 461.6 mg/L for lithium (Li), and 945.7 mg/L for magnesium (Mg) were applied as the default values for unestimated High Porosity Salar blocks and calculated mean sample values of 186.4 mg/L for Li, and 729.8 mg/L for Mg were applied as the default values for unestimated Salar blocks in the block model. Lithium grades as high as 1,122 parts per million (ppm) were measured in the subsurface and 580 ppm at 360 m depth in drill hole JAM-24-01 (ASX release 18 June 2024 - "Exceptional results achieved from Well Two at Formentera").


- Significant maiden JORC Inferred Mineral Resource Estimate (MRE) of insitu 3,816,000 tonnes of Lithium Carbonate Equivalent (LCE) based on an insitu lithium metal resource of 717,000 tonnes defined at the Formentera Lithium Brine Project (the Project) in Argentina (lithium metal to lithium carbonate factor is x 5.323).

- The 173,000 tonnes of LCE in free flowing and capillary areas (Specific Yield [Sy]) provides a 15 year mine life at 10,000 tonnes a year.

- This maiden MRE confirms the Project as a highly strategic lithium asset being substantial in size with further upside targeting other high porosity areas on the salar.

- This initial 3.8 million tonne LCE MRE is within a 1,952 hectare (ha) area with high porosity zones close to demonstration plant location.

- Further drill holes are targeting upgrades to the MRE in the Cilon concession where sub-surface samples of 1,122 parts per million (ppm) lithium were collected are planned.

- Infill drilling, Differential Global Positioning System (DGPS) survey and light detection and ranging (LiDAR) surveying is also planned to upgrade the Resource from an Inferred Resource category.

- Of the total MRE, 85.82% of the brine volume is above a 100 ppm lithium (Li) cut-off grade (COG), of which the surface siliciclastics domain comprises 0%, the main salar domain comprises 86.07% above COG, and the high porosity salar domain comprises 100% above COG.

- Notably, the average porosity from core samples was higher than the Borehole Magnetic Resonance (BMR) derived values as these were sampled from discrete zones of higher porosity.

- Patagonia Lithium Ltd (Patagonia) can now complete the demonstration plant application, to be followed by further drilling at Cilon, and BMR surveys to further upgrade the initial MRE.

Phillip Thomas, Executive Chairman commented "We are delighted to announce this robust maiden JORC resource estimate of 3.8 million tonnes LCE, with 717,000 tonnes of lithium metal insitu which confirms our Formentera project as one of the best undeveloped projects in Argentina with superior brine volumes, specific yield (Sy), high porosity and lithium grades. The board will now progress its exploration, application for a demonstration plant, a scoping study and then definitive feasibility study with results from further exploration.

This maiden resource exceeds our expectations both in terms of total volume, specific yield (Sy) and also in terms of the high concentration of lithium, leading us to believe Patagonia has a valuable project to be developed. We have the added benefit of proven Ekosolve(TM) DLE (Direct Lithium Extraction) technology that has a short construction time and already proven extraction of more than 92% lithium, minimising pond construction risks with water table damage and K and Mg concentration risks. Considering we have drilled only 4 wells, there is still significant exploration and resource upside potential to expand this resource as we continue to drill out the high porosity zone and the Cilon concession. These results allow Patagonia to proceed to the next stage of our flagship project which is submitting the 1,000 tonne Ekosolve(TM) demonstration plant permit application, drilling exploration well five and planning production wells when the BMR surveys are finished. We are confident we will unlock additional resource and value for our shareholders."

*To view the full announcement, please visit:
https://abnnewswire.net/lnk/RJS8KJ61


About Patagonia Lithium Ltd

Patagonia Lithium LtdPatagonia Lithium Ltd (ASX:PL3) owns 100% legal and/or beneficial interest in the share capital in Patagonia Lithium Argentina S.A. Patagonia Lithium Argentina S.A. is a private company registered in and governed by the laws of Argentina. Patagonia Lithium Argentina S.A. was incorporated on 13 June 2022 for the purpose of being the Company's local vehicle for its business operations in Argentina and holding title to the Projects and/or future acquired tenements located in Argentina.

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Contact

Phillip Thomas
Executive Chairman
Patagonia Lithium Ltd
M: +61 433 747 380
E: phil@patagonialithium.com.au



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