Patagonia Lithium

Patagonia Lithium announced progress in drilling activities at its Formentera Lithium Project in Salar de Jama, Argentina.

Well three, currently drilled to a depth of 254.5m, has displayed very porous sandstone units within the tested 152m aquifer interval, indicating robust brine flow.

Six packer assay tests have been completed at depths ranging from 86.50m to 254.5m, all showing strong brine flow.

The highest recorded flow rate was 800 litres per hour at a depth of 188.50m, with a cumulative 12,800 litres of brine pumped so far.
The brine exhibits a specific gravity of 1.125 gm/cm3 and conductivity of 200 µS/cm at 254m depth.

Patagonia Lithium has received environmental approval for the drill setup at Formentera and for soil and brine inspections at Cilon from the Mines Department.

The company highlights the encounter of porous sands that are favourable for strong production brine flows.

Phillip Thomas, executive chairman of Patagonia Lithium, expressed enthusiasm about the findings: "The flow rates achieved to date are extremely encouraging as is the porous lithology over more than 150m. The depth of the aquifer tested means strong flow rates when we go to production. Brines will be pumped from below the well depth."

The company continues to explore and develop its lithium brine projects in Argentina.

Patagonia Lithium is an ASX-listed mining exploration company.

The company has two major lithium brine projects: Formentera/Cilon in Salar de Jama, Jujuy province, and Tomas III at Incahuasi Salar in Salta Province of northern Argentina in the declared lithium triangle.

Patagonia Lithium has commenced drilling at its third well at the Formentera Lithium Project.

In this interview, Patagonia Lithium Executive Chairman Phillip Thomas discusses the company’s drilling campaign in Argentina.

The drilling marks a milestone in the exploration of the Formentera/Cilon concessions.

Patagonia Lithium has commenced drilling at well JAM 24-03 within the Formentera Lithium Project.

The well has currently reached a depth of 30m and has been reamed to a diameter of 9 3/4 inches.

A 30m steel pipe has been cemented into position, and preparations are underway for the installation of a 4-inch slotted PVC lining.

The company will complete necessary reporting before beginning drilling at the subsequent well, JAM 24-04.

Meanwhile, the preparation of the pilot plant production permit is in progress, indicating significant forward momentum for the project.

Phillip Thomas, executive chairman of Patagonia Lithium, stated, "The past sampling results, MT geophysics results and JAM-01 and JAM-02 results achieved to date give us a very high prospectivity outlook for the wells."

Additionally, core samples from the previously drilled JAM 24-02 are being analysed for porosity at Core Laboratories in Western Australia.

Significant assays of 1,122ppm and 1,008ppm lithium were recorded from sub-surface sampling at a site 450m west of JAM 24-04.

The drilling marks a milestone in the exploration of the Formentera/Cilon concessions. Pending the mineral resource estimate calculation, follow-up drilling is planned.

Patagonia Lithium has two major lithium brine projects in northern Argentina's lithium triangle: Formentera/Cilon in Salar de Jama, Jujuy Province, and Tomas III at Incahuasi Salar in Salta Province.

The company has applied for 41,746 hectares of concessions to explore ionic REE clays, niobium, gallium, and lithium in pegmatites.

Out of 25 concessions applied for, 19 have been granted, with the first phase of exploration completed in June.

Patagonia Lithium has released its quarterly activities report for the period ended June 30, highlighting significant advancements in its projects in Argentina and Brazil.

In Argentina, the company achieved an outstanding lithium value of 591ppm from Well One (JAM 24-01) with a porosity range of 27-47%, confirming an aquifer zone from 170-370m.

Progress continued with the completion of Well JAM 24-04, drilled to a depth of 347m, showing excellent porosity characteristics.

"These results surpass our initial expectations and firmly establish the potential of the Formentera Project," said Phillip Thomas, Executive Chairman at Patagonia Lithium.

The mining exploration company received approval to drill up to eight wells on the Cilon concession, where significant geophysics indicate the area's high prospectivity.

Work also commenced on the production EIR involving testing of reinjection of waste brines from the proposed Ekosolve Plant and evaporation processes.

In Brazil, 21 of the company's 25 exploration concessions were granted, including highly prospective sites for rare earth elements and niobium. Concession 830164/165 in Goiás state yielded positive REE values from roadside sampling.

After June 30, Patagonia raised $400,000 through a convertible note, with a 9-cent conversion price and 1:2 15-cent one-year attaching listed option. The cash balance at the end of June was $290,000.

Payments to related parties for director salaries, superannuation, and consultancy fees totalled approximately $64,000.

Patagonia Lithium has acquired exploration licences for over three prospective properties to explore lithium in the lithium triangle in Argentina- one in the Salta Province and two in the Jujuy Province.

Patagonia Lithium has received approval from the Jujuy Mining Department for its environmental impact report to drill eight wells at the Cilon concession in Argentina.

Each well will be drilled to a depth of 500m, starting with JAM24-03 on July 22. Subsurface sampling recorded 1,122ppm of lithium only 250m away from boundary of Cilon.

Within the next 90 to 120 days, the company will analyse five surface samples, finalise a comprehensive map, and complete an archaeological report as a reporting requirement.

A weather station is now operational on-site to record evaporative conditions, temperatures and wind speeds.

Phillip Thomas, Patagonia's executive chairman, noted the high prospectivity of the Cilon wells based on past sampling, MT geophysics, and results from wells JAM-01 and JAM-02.

Patagonia Lithium identified a significant rare earth element clay system in the Goiás state of Brazil.

The company concluded its initial ground truth mapping and sampling on its granted concessions in the expansive 3,700km2 field.

The exploration identified 11 targets predisposed to ionic REE concentrations, with high levels of lutetium and yttrium oxides.

Further detailed work will use short wave and infrared analysis followed by rock chip and air-core drilling.

The sampling revealed high concentrations of REEs at depth, indicating alteration of sericite from granites and gneiss.

Patagonia Lithium has revealed an entitlement offer of one new fully paid ordinary share for every three shares held at an issue price of $0.09 per share, together with one attaching option for every two shares issued, with an exercise price of $0.15.

The offer will expire on the 31st of August 2024.

The company's significant shareholder, Southeast Mingqing Supply Chain (Fuyang) has committed to subscribe for its full entitlement under the offer and to subscribe for up to an additional $1.5 million, subject to overseas direct investment approval. 

Patagonia Lithium has lodged a prospectus with the Australian Securities and Investments Commission for a pro-rata, non-renounceable entitlement offer.

Eligible shareholders can buy one new share for every three shares held at 9 cents per share, potentially raising $1.8 million.

The offer includes one attaching option for every two new shares, exercisable at 15 cents before Aug. 31, 2025.

Funds will support the drill program in Argentina and further exploration in Brazil.

Melbourne-based exploration company Patagonia Lithium plans to raise up to $2.15 million through a convertible note issue and a non-renounceable entitlement offer.

Executive Chairman Phil Thomas will contribute $150,000 and take up his full entitlement of $34,000.

Southeast Mingqing Supply Chain (Fuyang), a shareholder of the company, also committed to subscribe for its full entitlement under the entitlement offer, with an additional $1.5 million subject to overseas direct investment approval.

The convertible note issue will see the issuance of up to 4,444,445 shares converting at $0.09.

The funds raised will be directed towards completing the current drill program in Argentina, preparing an updated mineral resource estimate, and advancing the company's Brazilian exploration efforts.

The entitlement offer opens on July 23 and closes on Aug. 9, with new shares expected to be quoted on Aug. 16.

The Company has been able to achieve outstanding results from its Formentera Lithium Brine Project.

Patagonia Lithium has reported “exceptional results from Well Two at its Formentera Project lithium project in Argentina. 

In this interview, Patagonia Lithium Executive Chairman Phillip Thomas discusses the high lithium assay results of 582ppm. 

Patagonia Lithium also revealed porosity tests conducted on Well One also revealed extremely high total porosity ranging from 27% to 47%.