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San Jorge Lithium Project Faces Uncertainty as Scoping Study Begins

Mining By Maxwell Dee 4 min read

Greenwing Resources has initiated a scoping study at its 100%-owned San Jorge Lithium Brine Project in Argentina, appointing lithium brine specialist Zelandez to lead the work. The study aims to define development pathways and an economic framework for the project, which hosts a maiden Mineral Resource Estimate of 1.07Mt LCE.

  • Scoping study commenced with Zelandez to define development and processing options
  • San Jorge hosts 1.07Mt LCE with lithium brine mineralisation open at depth and laterally
  • Geophysical data indicates extensive brine volumes extending beyond current resource
  • Study includes environmental, hydrogeological, and economic assessments
  • Project advancement aligns with growing lithium sector interest and supply security focus

Scoping Study Initiated at San Jorge Project

Greenwing Resources Ltd (ASX:GW1) has commenced a scoping study and drill planning program for its San Jorge Lithium Brine Project, located in Catamarca Province, Argentina. The company has appointed Zelandez, a specialist lithium brine management firm with a proven track record in the Lithium Triangle, to lead the study and project definition efforts.

The San Jorge Project is notable for its 100%-owned salar positions within the Lithium Triangle, a region recognised globally for lithium brine resources. Greenwing’s Managing Director, Peter Wright, highlighted the strategic significance of San Jorge, noting the project’s potential to become an important lithium supply source amid increasing global demand and government focus on securing reliable lithium supply chains.

Resource and Geophysical Insights

The project hosts a maiden Mineral Resource Estimate of 1.07 million tonnes of Lithium Carbonate Equivalent (LCE), comprising 670,000 tonnes in the Indicated category and 400,000 tonnes Inferred, with an average lithium concentration of 195 mg/L. Initial drilling in 2024 intersected lithium brine to the maximum depth of 402 metres, with lithium concentrations increasing at depth to around 250 mg/L.

Geophysical surveys, including Magnetotelluric (MT) and Transient Electromagnetic (TEM) methods, have identified extensive brine mineralisation extending laterally to the west and north of the salar and vertically to depths of approximately 1,000 metres. These findings suggest significant potential for resource expansion beyond the current estimate, with Zelandez tasked to define drill targets to test these extensions.

Comprehensive Work Program and Development Pathways

The scoping study will encompass site characterisation, environmental and hydrogeological assessments, meteorological monitoring, bulk sampling, process test work, preliminary flowsheet development, and initial economic modelling based on industry cost benchmarks. This work aims to provide a clearer technical and economic understanding of the project, supporting future drilling and advancement decisions.

Greenwing’s approach to San Jorge follows its broader strategy of advancing critical minerals projects, as seen in its recent activities at the Que River Project in Tasmania, where it is progressing a Pre-Feasibility Study and exploring innovative data infrastructure opportunities. This broader context underscores Greenwing’s commitment to developing assets that contribute to cleaner energy markets and electrification supply chains.

Mr Wright emphasised that the scoping study marks a recommencement of meaningful progress at San Jorge, building on the company’s maiden resource estimate and initial processing work. The study is intended to deliver a development roadmap and help unlock the project’s potential as a stand-alone lithium source.

Strategic Positioning in the Lithium Sector

San Jorge’s consolidated landholding of approximately 38,000 hectares includes the San Francisco Salar and surrounding areas with high potential for lithium brine mineralisation as well as water supply prospects critical for project development. The project’s location within the Lithium Triangle positions it strategically amid rising global lithium demand driven by electrification and battery markets.

Greenwing’s engagement of Zelandez, with its lithium brine expertise, reflects a targeted effort to advance San Jorge through detailed technical evaluation and economic assessment. The company’s ongoing work aims to move the project from an initial discovery phase toward a defined development opportunity with a clear program and timeline for advancement.

Bottom Line?

The scoping study at San Jorge represents an early but important step in defining the project’s development potential, with further drilling and technical work needed to clarify resource growth and economic viability.

Questions in the middle?

  • How will the scoping study outcomes influence Greenwing’s project timeline and capital allocation?
  • What are the key risks associated with the untested extensions of the lithium brine system at San Jorge?
  • How might evolving lithium market dynamics impact the economic framework being developed in the study?