As BMG Resources (ASX: BMG) prepares for its lithium brine joint venture to be formalised, the company has been pushing forward with plans for an initial drilling program on the Salar West lithium brine project in South America.
Last month, BMG reported it had identified a strong conductive unit extends into recently pegged claims that now form part of the larger Salar West project in Salar de Atacama.
After reviewing the stage two geophysical survey over the project, BMG expects the conductive unit is about 2km wide and extends over 6km through the southern properties and covers a 12 square kilometre area.
A drilling program is scheduled to kick-off in May, which will confirm the nature of the conductive unit.
BMG anticipates the drilling program will be completed and the company will have results before the end of June.
“BMG’s development plan remains on track and we are increasingly excited by the potential we are seeing in the geophysics at Salar West,” BMG managing director Bruce McCracken said.
“We are well-funded following our recent capital raising to commence drilling here in the coming weeks.”
“We enter the June quarter ready to execute our plans to realise the potential of our projects in the world’s best lithium district and look forward to delivering a strong period of positive news for investors,” Mr McCracken added.
Lithium brine joint venture
Once the joint venture has been formalised, BMG will begin exploration to earn a 50% in Salar West along with two other claims in Salar de Pajonales and Salar de Tuyajto – Natalie.
Combined, the assets cover 20,000 hectares of land in one of the world’s largest and highest grade lithium brine producing regions.
In order to secure the 50% ownership, BMG will pay US$3.5 million in cash or shares upon reaching various milestones, with the first US$250,000 to be paid upon the joint venture being formalised.
BMG will fund the upcoming drilling program with the A$670,000 it raised via a placement it made in February to new and existing institutional and sophisticated investors.
Shares in BMG were steady at $0.008 in early afternoon trade.