A landmark review of past exploration results from properties abutting its Solaroz project in Argentina has strengthened South America lithium play Lithium Energy’s view that the lithium-rich brine extracted at Orocobre’s major operation next door is present at its ground.
Newly ASX-listed Lithium Energy’s flagship Solaroz lithium brine project is located within the Salar de Olaroz Basin in South America’s prolific “lithium triangle” in north-west Argentina.
Solaroz neighbours the Olaroz lithium brine operation of ASX and Toronto Stock Exchange-listed Orocobre Ltd and joint venture partner, Tokyo Stock Exchange-listed Toyota Tsusho Corporation.
Olaroz produces lithium carbonate from lithium-rich brine drawn from bore fields drilled on the “salar” or salt lake.
Solaroz also lies not far from the advanced Cauchari-Olaroz lithium brine project called, which is currently under development and jointly owned by TSX and New York Stock Exchange-listed Lithium Americas Corporation and Chinese giant, Ganfeng Lithium.
Lithium Energy has pored over the extensive exploration data generated by A$2.15 billion market-capped Orocobre and Lithium Americas’ previous drilling and geophysical surveys conducted both adjacent to and on Lithium Energy’s tenements.
The company says the review supports its belief that the Solaroz tenements overlie the same lithium-rich aquifer within the Olaroz Salar from which Orocobre has been extracting and processing lithium-rich brine for sale as lithium carbonate since 2015.
Lithium Americas, which has a market cap of about C$1.9 billion, and Ganfeng plan to tap the Olaroz Salar and Salar de Cauchari for their project.
Lithium Energy’s detailed review and analysis have led to a more detailed conceptual geological model being developed for Solaroz and it hopes to identify initial exploration targets shortly.
The company enjoyed a stunning ASX debut last week and its share price has been bubbling away at more than double the listing price of 20¢.
It raised $9 million in the recent IPO and has allocated exploration expenditure in relation to Solaroz of $2.5 million in year one post-IPO and $2.06 million in year two.
Lithium Energy was spun out of iron ore junior, Strike Resources which emerged from the process with a 43 per cent shareholding in the lithium explorer.
The “highly strategic and prospective” Solaroz lithium brine project area covers about 120 square kilometres across eight lithium mineral tenements.
Argentina hosts the largest lithium resources as brine deposits in the world and is currently the third largest producer of lithium across the globe, behind only Australia and Chile.
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