Cordoba, Argentina
Source: Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Patagonia Lithium (ASX:PL3) has seen its shares spike up more than 42% following its release of a maiden inferred mineral resource estimate (MRE) of 3.8 million tonnes of lithium carbonate equivalent (LCE) for the Formentera lithium brine project in Argentina.

The MRE, which is specifically measured at 3,816,000 tonnes of LCE based on an in-situ lithium metal resource of 717,000 tonnes, puts Formentera in a strong position among other Argentinian lithium plays.

Also revealed in the MRE announcement was the fact the project contains 173,000 tonnes of LCE in free-flowing and capillary areas, enabling Patagonia to plan for a 15-year mine life for the project, producing 10,000 tonnes a year.

Crucially, 85.82% of the MRE’s total brine volume is above a 100-ppm lithium cut-off grade (COG), of which the surface siliciclastics domain comprises 0%, the main salar domain comprises 86.07% above COG, and the high porosity salar domain comprises 100% above COG.

Drilling work is ongoing to enable upgrades, with a focus on the Cilon concession where sub-surface samples of 1,122 parts per million (ppm) lithium have been collected.

Patagonia will be undertaking infill drilling and a range of surveying activities – including a differential global positioning system (DGPS) survey and light detection and ranging (LiDAR) surveying – to upgrade the resource from the inferred category.

Executive chairman Phillip Thomas said the MRE numbers provided Patagonia with optimism and a robust resource to work with.

“We are delighted to announce this robust maiden JORC resource estimate of 3.8 million tonnes LCE,” he said.

“With 717,000 tonnes of lithium metal insitu which confirms our Formentera project as one of the best-undeveloped projects in Argentina with superior brine volumes, specific yield (Sy), high porosity and lithium grades.

“The board will now progress its exploration, application for a demonstration plant, a
scoping study and then definitive feasibility study with results from further exploration.”

Patagonia shares last traded at 12 cents each after rising 42.48%.

Join the discussion: See what HotCopper users are saying about Patagonia Lithium and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

PL3 by the numbers
More From The Market Online
The words "Market Open" appear stacked atop one another next to ASX company iconography.

ASX Market Open: Bourse to land flat but CBA bowling over expectations may change that | Feb 12, 2025

It’s starting to look like a flat Wednesday, with Aussie futures now pointing to a near-unnoticeable 0.
The Market Online Video

ASX Market Close: Bourse trades flat as Trumps flags possible tariff exemptions | February 11, 2025

The ASX200 closed flat at 8,484 points.
The Market Online Video

‘Humming along’: Cloud computing provider ‘primed for a run’ is Hot Stock tip this week

Data #3 Limited (ASX:DTL) is the HotCopper Hot Stock tip picked out by Wealth Within analysts 
The Market Online Video

ASX Market Update: Albanese scores steel, aluminium tariff exemptions | Feb 11, 2025

The ASX200 has been up 0.08% at 8,490 points.