Patagonia Reports 717,000 Tonnes Lithium Metal Equivalent in Maiden Resource

Strong Drilling Results Drive Maiden Resource Estimate

Patagonia Lithium Limited (ASX:PL3) has delivered a significant milestone with the release of its maiden mineral resource estimate (MRE) for its Formentera/Cilon lithium brine project in Argentina. The inferred resource totals 717,000 tonnes of lithium metal, translating to approximately 3.8 million tonnes of lithium carbonate equivalent (LCE). This estimate is underpinned by exceptional drilling outcomes, including well four, which demonstrated a 40% higher pump test flow rate than previous wells, and outstanding porosity results from core samples at depths of 151m and 390m.

The company’s exploration efforts in the lithium triangle continue to show promise, with the Cilon concession well located and planned for drilling following the MRE completion. The geological and hydrological data, supported by MT geophysical surveys, suggest robust aquifer characteristics conducive to lithium extraction.

Brazilian Concessions Granted, Reconnaissance Planned

In Brazil, Patagonia has secured all 25 exploration concessions it applied for across Minas Gerais, Goias, and Mato Grosso states. These areas are strategically positioned near known rare earth and lithium anomalies, including proximity to the Araxá apatite-niobium deposit. While no active exploration occurred in Brazil during the quarter, reconnaissance work is slated to commence, prioritizing the Goias concessions.

Funding Challenges and Strategic Negotiations

Despite the technical progress, Patagonia’s cash position is precarious, with only $54,000 in cash at quarter-end. The company is engaged in advanced negotiations to raise additional capital, including a $1.85 million placement commitment from Hiro Corporation and ongoing discussions with other institutional investors. Delays in overseas fund transfers have impacted the timely receipt of committed funds, but the company remains confident in securing the necessary financing to sustain its exploration and development agenda.

Patagonia plans to invest approximately $600,000 in upcoming BMR geophysical surveys and drilling a 600m deep well at Cilon to upgrade the current resource estimate. The company also aims to progress its Ekosolve direct lithium extraction (DLE) demonstration plant project, targeting a 1,000-tonne lithium carbonate capacity with innovative brine reinjection and evaporation techniques.

Outlook and Strategic Positioning

Patagonia Lithium’s dual focus on Argentina’s lithium triangle and emerging Brazilian concessions positions it well within the global lithium supply chain, which remains under pressure from accelerating electric vehicle demand. The maiden resource estimate and promising drilling results provide a solid foundation for further resource definition and potential commercialisation.

However, the company’s near-term trajectory hinges on successful capital raising to fund exploration and feasibility studies. The appointment of Pablo Tarantini to the board and strategic discussions with key shareholders signal a proactive approach to securing financial and operational support.