BMG Resources anticipates lithium brine assays from Pajonales next month

BMG Resources ASX anticipates lithium brine assays Pajonales Chile
BMG Resources has encountered brine 0.7m below the salar’s surface at Pajonales during pit sampling.

BMG Resources (ASX: BMG) has struck brine during initial shallow pit sampling at its Pajonales lithium brine project in northern Chile, which is held under joint venture with Lithium Chile SpA.

Pit sampling at Pajonales has confirmed brine is present 0.7m below the salar’s surface, which is 3,540m above sea level.

The samples have been submitted for analysis with results anticipated next month.

Once results are at hand, BMG said it would firm up other targets across Pajonales.

Additionally, BMG is advancing discussions with indigenous communities regarding its proposed exploration at the Natalie project.

The company noted the discussions were progressing in a “co-operative way”.

Lithium brine joint venture

Formalised in May this year, the joint venture with Lithium Chile covers 20,000 hectares and spans three claims in South America’s Lithium Triangle.

The claims are across Salar de Atacama, Salar de Pajonales and Salar de Tuyajto – Natalie.

All up, BMG will pay US$3.5 million to secure a 50% holding in the assets and this will be transferred in stages and via cash and shares.

Salar de Atacama

Since the joint venture was formalised, BMG has focused on the Salar West project within Salar de Atacama.

The company completed its first hole at Salar West in late September after reaching a 176m depth.

A brine zone was intercepted between 152.9m and 154.9m with results from samples currently pending.

Overall at Salar West, BMG plans to drill 400m to test shallow portions of prospective ground across the claim.

Drilling was also targeting the strongly conductive unit identified from recent transient electromagnetic geophysical surveys.

“The unit potentially represents hypersaline lithium-bearing brine extending south from close to surface,” BMG managing director Bruce McCracken said.

During the coming months, BMG plans to establish lithium JORC resources within the claim area with the aim of fast-tracking development of a lithium brine operation.