BMG Resources (ASX: BMG) has identified a new drilling target at the Salar West lithium brine project in South America’s Lithium Triangle.
After BMG carried out an initial geophysical survey on the Salar West tenements last year, the company pegged up a further 2,100 hectares in the Atacama Salar, with the new claims abutting the original project’s western boundary.
According to BMG, the stage two electromagnetic geophysical study was recently completed across the new claims and identified the strong conductive unit extends into these tenements.
All seven electromagnetic geophysical survey lines revealed the conductive unit continues below shallow dry gravel cover.
“The success of the stage two geophysics is further indication of the potential the Salar West claims demonstrate,” BMG managing director Bruce McCracken said.
“Results to-date indicate that the conductive unit is approximately 2km wide, extending over approximately 6km through the southern properties, covering an area of approximately 12 square kilometres.”
“This provides BMG with a significant target for our maiden drilling program, which we plan to commence in May and aim to have completed by 30 June,” Mr McCracken added.
Salar West project
Salar West encompasses a series of claims on the Atacama Salar’s south-western margin in Chile.
The project is about 185km south-east of the region’s major port city of Antofagasta.
Nearby lithium brine operators include SQM, Albemarle and Chile Government-owned CORFO.
According to BMG, the area hosts some of the lowest cost, highest-grade lithium brine deposits with grades of around 1,800 milligrams per litre lithium.
Joint venture to be formalised shortly
In August last year, BMG entered a joint venture over three Chile-based projects including Salar West.
Under the joint venture, BMG can earn a 50% stake by paying US$3.5 million.
Final administrative details are under review, with BMG reporting it expects the documentation will be executed shortly resulting in the joint venture being formalised.
As the company awaits formalisation of the joint venture, it is already well-advanced with preparations for the maiden drilling program at Salar West, which it expects to begin next month and complete before the end of June.
Prior to market open, BGM’s share price was $0.009.