Greenwing Resources Expands Lithium Brine Potential at San Jorge Project

San Jorge Lithium Project: Expanding the Lithium Triangle Footprint

Greenwing Resources Ltd (ASX:GW1) has delivered a robust quarterly update for the period ending 31 December 2024, highlighting material advancements at its flagship San Jorge Lithium Project in Argentina. The project, which encompasses a substantial 38,600-hectare tenement package including the entire 2,600-hectare San Francisco Salar, remains one of the few lithium brine projects in the Lithium Triangle with 100% ownership of both salar and surrounding ground.

Following the maiden Mineral Resource Estimate (MRE) announced in May 2024, which quantified 1.07 million tonnes of lithium carbonate equivalent (LCE) comprising 0.67 Mt indicated and 0.4 Mt inferred resources at an initial grade of 195 mg/L lithium, Greenwing has extended the known brine mineralisation significantly. Recent geophysical surveys using Magnetotelluric (MT) and Transient Electromagnetic (TEM) methods confirmed the lithium-bearing brine extends at least 4 kilometres west and 5 kilometres north beyond previous boundaries, with mineralisation remaining open at depth beyond 400 metres.

Processing Breakthroughs Bolster Project Viability

Complementing the resource expansion, Greenwing completed initial brine processing test work with industry leaders IBC Advanced Technologies and Xstralit DLE Lithium. The proprietary Molecular Recognition Technology (MRT) employed by IBC demonstrated lithium recovery rates exceeding 99%, producing a highly concentrated lithium solution (7,200 mg/L) suitable for direct conversion into battery-grade lithium hydroxide monohydrate without intermediate steps. These results reinforce the amenability of San Jorge’s brine to direct lithium extraction (DLE) technologies, a critical factor in reducing processing costs and environmental footprint.

Madagascar Portfolio: Navigating Regulatory Changes and Exploration Progress

Beyond Argentina, Greenwing continues to advance its portfolio in Madagascar, which includes the Graphmada Graphite Mining Complex, the Andapa Graphite Project, and the Millie's Reward Hard Rock Lithium Project. The company is actively engaging with evolving mining legislation aimed at fostering investment and streamlining permit processes. At Millie's Reward, Greenwing is finalising permit transfers to resume exploration, targeting lithium-bearing pegmatites with promising historic surface assays up to 7.08% lithium oxide.

Meanwhile, the Andapa project’s recent auger drilling program comprising 388 holes over 3,262 metres has concluded, with assay results under independent review and expected to be released in the March 2025 quarter. The Graphmada complex remains on care and maintenance, with Greenwing seeking strategic investment to unlock value from its substantial graphite resource of 61.9 million tonnes at 4.5% fixed carbon.

Financial Position and Outlook

Greenwing reported net cash outflows of $201,000 for exploration and evaluation activities during the quarter, with total cash and available financing facilities amounting to approximately $1.1 million. This funding position supports an estimated two quarters of operational expenditure outside the San Jorge project. The company also benefits from an $8 million at-the-market equity facility, providing a runway for future development and exploration initiatives.

Despite current lithium market volatility, Greenwing remains confident in the long-term fundamentals driven by supply-demand imbalances and strategic interest in lithium assets, as evidenced by recent market transactions involving major players like Rio Tinto and Lithium Chile. The company’s integrated approach across lithium and graphite, combined with promising technical results and strategic tenement holdings, positions it well to capitalise on the growing electrification and battery materials markets.