Patagonia reports up to 1122ppm lithium from sampling at Formentera and Cilon projects

Newly-listed explorer Patagonia Lithium (ASX: PL3) has reported a “very high content of lithium” from its salars following a sampling program at the Formentera and Cilon projects in Argentina’s famed lithium triangle.

The company used a motorised auger to collect a range of samples which were then sent under security to SGS Argentina for assaying.

A total of 28 bottles were delivered and detailed classification of the soils was completed at 50 centimetre intervals.

Patagonia confirmed two of the samples hit 1008 parts per million and 1122ppm lithium.

Assays were received from 19 samples taken from a depth of less than 2 metres and one surface stream sample.

The samples produced “extreme high levels” of lithium in the brines and demonstrated that high concentrations of lithium exist across a wide area near the surface on the concessions.

Ten of the samples had lithium content exceeding 75ppm, including 238ppm and 467ppm.

The highest-grade samples also had elevated values of boron and low ratios of magnesium to lithium.

Only one hole did not intercept brine at a depth of three metres, while five were muddy.

Solvent extraction

A 20 litre sample from one of the holes will be sent for analysis to the Ekosolve™ solvent extraction facility within the University of Melbourne to determine the recovery and grade of lithium chloride.

An 18 kilometre MT (magnetotellurics) geophysics study is now underway to determine the resistivity, depth and location of aquifers on both concessions.

Encouraged by results

Executive director Phil Thomas said the company was encouraged by the results.

“The significance of the sampling gives us a surface expression of where lithium is concentrating and where it is not,” he said.

“Once the MT data is collated and interpreted, we will have a high confidence of where the drilling targets will intercept aquifers with conductive fluids which may contain lithium.”

Mr Thomas said the geophysics would outline the extent and depth of low resistivity lithologies (possibly aquifers) which appear to be concentrated in areas close to the surface.

Surface brines

Sampling of surface brines is used to determine the presence of positively-charged ions (or cations) and negatively-charged ones (anions) and measure the impact of fresh water recharge on the surface if any.

Cilon was previously a boron mine and the element has a known correlation with lithium.

Research has shown that lithium can be extracted from boron waste.

Flagship project

Formentera is Patagonia’s flagship project and is considered to be prospective for lithium and borates.

It is located in the Jujuy province, within one of the largest depressions of the Puna, which forms one of the largest salar basins in north-western Argentina covering more than 500 square kilometres.

Exploration permit

The Cilon project is also in Jujuy province and currently has an exploration permit in force for borates.

The concession area is located on the southern boundary of Formentera in one of the wide depressions of the Puna.

It is approximately 15.25 square kilometres in an area dominated by clastic and saline sedimentation.

The geology of Cilon is considered to be the same as that of Formentera. Patagonia is waiting for the issue of its drilling permit. It presented its application to the government in December 2022 and feels its granting is imminent.

Recent ASX listing

Patagonia listed on the Australian Stock Exchange in March after raising $8.6 million through the issue of 58.5 million shares.

The company gained two cornerstone investors in China-based Fuyang Mingjin New Energy Development Co and Southeast Mingqing Supply Chain (Fuyang) Co, which each subscribed for $2.75 million of the total funds raised.

As part of the listing process, almost $3.8 million was paid to the vendors of the Formentera, Cilon and Tomas III (in the Salta province) projects.

Patagonia now owns 100% of the projects.