Patagonia Lithium Ltd has announced a maiden JORC Inferred Mineral Resource Estimate of 3.8 million tonnes of Lithium Carbonate Equivalent at its Formentera Lithium Brine Project in Argentina, highlighting significant potential for resource upgrades through ongoing drilling and advanced extraction technology.
- Maiden JORC Inferred Mineral Resource Estimate of 3.8 million tonnes LCE
- High porosity zones with 173,000 tonnes LCE supporting a 15-year mine life at 10,000 tpa
- Upcoming drilling and geophysical surveys targeting resource upgrades
- Use of Ekosolve™ Direct Lithium Extraction technology with over 92% lithium recovery
- Project located in Argentina’s lithium triangle with strategic access to infrastructure
A Significant Maiden Resource
Patagonia Lithium Ltd (ASX: PL3) has delivered a landmark milestone with the announcement of a maiden JORC Inferred Mineral Resource Estimate (MRE) of 3.8 million tonnes of Lithium Carbonate Equivalent (LCE) at its Formentera Lithium Brine Project in Argentina’s prolific lithium triangle. This initial resource is based on an insitu lithium metal resource of 717,000 tonnes, underscoring the project's substantial scale and strategic importance in the global lithium supply chain.
The resource estimate covers a 1,952-hectare area characterized by high porosity aquifers, with 173,000 tonnes of LCE identified in free-flowing and capillary zones. This specific yield supports a projected 15-year mine life at a production rate of 10,000 tonnes per annum, positioning Formentera as a potentially long-life lithium brine operation.
Geological and Technical Foundations
The Formentera project benefits from a robust geological model integrating diamond drilling, borehole magnetic resonance (BMR) surveys, and magnetotelluric (MT) geophysics. Four diamond drill holes totaling nearly 1,500 meters have delineated thick sequences of lithium-bearing brines within porous sands and gravels. Notably, lithium concentrations reached as high as 1,122 ppm in subsurface samples, with consistent grades supporting the resource estimate.
Porosity analyses reveal exceptional aquifer characteristics, with specific yield values averaging 13% in the high porosity zones, validated by continuous BMR logging. Pumping tests demonstrated strong brine flow rates, confirming the aquifer’s capacity to sustain commercial extraction. These technical insights provide confidence in the resource’s extractability and underpin the economic potential of the project.
Innovative Extraction Technology
Patagonia Lithium is leveraging the Ekosolve™ Direct Lithium Extraction (DLE) technology, which has demonstrated lithium recovery rates exceeding 92% in pilot testing. This environmentally friendly process minimizes the need for large evaporation ponds, reducing water table impacts and mitigating risks associated with potassium and magnesium concentrations.
The company is advancing an application for a 1,000 tonnes per annum demonstration plant, with plans to scale up to 10,000 tonnes per annum pending regulatory approvals. The projected capital expenditure for the demonstration plant is estimated at US$8-9 million, with the larger commercial plant expected to cost between US$70-90 million. Operating costs are forecasted at approximately US$3,700 per tonne of lithium carbonate equivalent, inclusive of royalties and licensing fees.
Strategic Location and Infrastructure
Located in the Jujuy Province near the Chilean border, the Formentera project enjoys proximity to key infrastructure, including the paved National Route 52 highway, facilitating efficient transport to export ports. The project’s high altitude salar basin is geologically favorable, with lithium-enriched brines sourced from volcanic and sedimentary formations within a closed basin system conducive to lithium concentration.
Patagonia Lithium’s ownership of the Formentera and adjacent Cilon concessions, covering nearly 20 square kilometers, provides ample scope for resource expansion. Upcoming drilling campaigns and geophysical surveys aim to upgrade the resource classification from Inferred to Indicated, enhancing confidence and project valuation.
Outlook and Next Steps
Executive Chairman Phillip Thomas expressed optimism about the project’s potential, highlighting the robust maiden resource and the promising results from limited drilling to date. The company plans to continue exploration with additional drilling, BMR surveys, and hydrological modeling to refine the resource and support feasibility studies.
With lithium demand surging globally, particularly for battery applications in electric vehicles and energy storage, Patagonia Lithium’s Formentera project stands out as a compelling development opportunity. The integration of advanced extraction technology and a substantial resource base positions the company well to capitalize on the evolving lithium market dynamics.
Bottom Line?
Patagonia Lithium’s maiden resource at Formentera marks a strong start, but the journey to commercial production hinges on successful resource upgrades and demonstration plant approvals.
Questions in the middle?
- How will upcoming drilling at the Cilon concession impact the resource classification and size?
- What are the timelines and regulatory hurdles for the Ekosolve™ demonstration plant construction and expansion?
- How will lithium market price volatility affect the project's economic feasibility and financing?