Lithium Energy (ASX:LEL) announced financial results for the quarter ended 30 September 2022.

$15 million capital raising (before costs) completed in September 2022 via the issue of 15,000,000 shares at an issue price of $1.00 per share.

The first hole (SOZDD001) of the maiden 10 hole, 5,000 metre drilling programme at Solaroz has confirmed a major new lithium discovery, with assay results from packer sampling of conductive brines returning significant lithium concentrations of up to 555 mg/L.

Significant concentrations of Lithium-bearing brines now encountered in both the upper (~55m ? 230m) and lower aquifers (from ~265m to at least 325m) with the lower aquifer yet to be fully tested (as drilling is on-going from current depth of ~335m).

Brines encountered are contained mostly in sandstones, which are considered favourable (due to their porosity and permeability) for potential future brine extraction.

Generally increasing Lithium concentration, conductivity and density at depth indicates a hydraulically linked system with heavier brines (with higher concentrations of lithium) settling to the bottom of aquifer.

Core samples from SOZDD001 to be sent to US laboratory for centrifuge brine extraction, chemical analysis and porosity and specific yield testwork, which are necessary for the delineation of a maiden JORC Mineral Resource.

Second drill rig has been secured for mobilisation in November 2022 to accelerate completion of the drilling programme.

Flagship Solaroz Project (LEL:90%) comprises 12,000 hectares of highly prospective lithium mineral concessions located strategically within the Salar de Olaroz Basin in South America?s ?Lithium Triangle? in north-west Argentina, directly adjacent to or principally surrounded by world class lithium projects in production/development held by Allkem Limited (ASX/TSX:AKE) and Lithium Americas Corporation (TSX/NYSE:LAC).

An extensive drilling programme will commence during the current quarter at the Burke Tenement comprising a combination of RC, diamond core and geotechnical holes (totalling ~2,500m across ~18 holes), with the objective to upgrade part of the JORC Inferred Mineral Resource to a higher standard JORC Indicated Mineral Resource category, to facilitate the completion of studies on establishing a Purified Spherical Graphite (PSG) Anode manufacturing facility.

Drilling is also being planned for the Corella Tenement with the objective to test the extent of graphite mineralisation identified through previously conducted sampling and EM survey - ~2,500 metres of drilling with metallurgical sampling is planned.

The Burke Project (LEL:100%) is located in North Central Queensland and contains one of the highest grade graphite deposits globally (with a JORC Inferred Mineral Resource of 6.3Mt @ 16.0% TGC for 1Mt of contained graphite, which includes higher grade material of 2.3Mt @ 20.6% TGC for 0.464Mt of contained graphite).

Following the announcement the company?s share price rose 1.351%.