Patagonia Lithium prepares to drill a key lithium well in Argentina while advancing rare earth exploration in Brazil, backed by recent funding and promising early results.
- 600m lithium drilling planned at Cilon concession starting 27 October 2025
- Permit secured to drill near salt lake edge with contamination safeguards
- 11 rare earth element targets identified in Goiás state, Brazil
- Recent $2.68 million entitlement offer completed to fund exploration
- Previous drilling and geophysics indicate strong lithium brine potential
Lithium Drilling Advances in Argentina
Patagonia Lithium Ltd (ASX, PL3) is gearing up to commence drilling a new 600-metre well at its Cilon concession in the Salar de Jama region of Jujuy province, Argentina. Scheduled to start on 27 October 2025, this well, designated JAM 25-5, will be drilled approximately 320 metres from the salt lake edge, adhering to strict environmental regulations designed to prevent contamination of surface and near-surface brines. The company has worked closely with the Jujuy Department of Mining to secure the necessary permits, including the use of 100-metre steel casing to control any potential contamination risks.
Executive Chairman Phillip Thomas expressed optimism about the upcoming drilling, highlighting geophysical data that indicates a low resistivity zone extending to depths of 1,000 metres. This suggests a promising lithium brine target with high porosity, which could significantly increase the company’s resource base. The new well’s proximity to existing wells in the southern concession area will also help improve the confidence level of Patagonia’s lithium resource estimates.
Exploration Momentum in Rare Earth Elements
Meanwhile, Patagonia Lithium is advancing its rare earth element (REE) exploration program in Brazil’s Goiás state. Eleven targets have been identified adjacent to the CMOC Niobium mine, a significant regional landmark. Initial surface sampling and satellite spectral analysis have revealed promising concentrations of key rare earths such as Holmium, Lutetium, and Yttrium oxides, elements critical for high-tech applications including magnets, lasers, and medical ceramics.
The company plans to follow up with auger and air-core drilling to better define these targets. The Goiás concessions cover a geologically complex area with carbonatite and fenitisation zones known to host REE mineralisation. Patagonia’s approach combines traditional sampling with advanced geophysical techniques like VNIR and SWIR to refine exploration targeting.
Funding and Market Context
Patagonia Lithium recently completed a fully underwritten entitlement offer raising $2.68 million. These funds will support the current drilling campaign in Argentina, preparation of an updated Mineral Resource Estimate (MRE), and general working capital. The updated MRE, released in July 2025, showed a 319% increase in lithium carbonate equivalent resources, now estimated at over 551,000 tonnes LCE, with a significant portion in the Indicated category.
However, the lithium market remains challenging. Lithium carbonate prices in North America averaged around USD 9,357 per metric tonne in Q2 2025, continuing a downward trend amid softer demand from battery producers and slower electric vehicle rollouts. Patagonia’s drilling results and resource upgrades will be critical to maintaining investor confidence in this environment.
Looking Ahead
Patagonia Lithium’s dual focus on lithium brines in Argentina and rare earth elements in Brazil positions it well within two strategically important mineral sectors. The upcoming drilling and sampling programs will be closely watched for their potential to add value and advance the company’s projects toward development. With robust permitting in place and fresh capital secured, the next few months will be pivotal for Patagonia’s exploration narrative.
Bottom Line?
As Patagonia Lithium embarks on new drilling and rare earth exploration, market dynamics and assay results will shape its next growth phase.
Questions in the middle?
- Will the upcoming lithium well confirm high-grade brine mineralisation to boost resource confidence?
- How will Patagonia’s rare earth drilling targets translate into economic deposits amid early-stage exploration?
- Can the company navigate current lithium price pressures while advancing its resource development?