Patagonia Lithium Gains After Intersecting ‘Exceptionally’ High-Grade Lithium

Patagonia Lithium Ltd (ASX:PL3) shares surged 21% higher intra-day after intersecting ‘exceptionally’ high grades of lithium at the Formentera Lithium Project in Argentina.

The assays are from the 200-litre packer tests conducted on the second well JAM24- 02.

Notably, porosity levels of 47% were achieved at a depth of 280 metres along with lithium values of 572ppm.

Assay results.

Potential for a “very large” aquifer

Patagonia Executive Chairman Phillip Thomas said: “These results are exceptionally encouraging – high porosity, with lithium values concentrating at depth.

“I have never seen core porosity at such high levels of 47% at 280m depth and lithium values at that porosity of 572ppm.”

Thomas noted that pumping from well 2 during the 48 hours didn’t reduce the brine level in well 1, 300m away, which points to a very large aquifer open at depth.

“I was present for the 15th 200L extraction (a total of 3,000L) at packer test 9 from well two and inspected the core which continues to be outstanding from a porosity point of view with porous sands being encountered,” added Thomas.

Next steps

Patagonia has lined both wells with PVC tubing for porosity and permeability logging which will be undertaken when all four wells are completed.

The company has two major lithium brine projects – Formentera/Cilon in Jujuy province and Tomas III in Salta Province.

It has also applied for 41,746 hectares of concessions exploring ionic REE clays, niobium, and lithium in pegmatites.

Patagonia had a cash balance of A$2.13 million on 31 March 2024.

 

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