Lithium Energy (ASX:LEL) announces “significant” maiden resource of 3.3Mt LCE at Solaroz, Argentina

• Lithium Energy (LEL) announces a maiden inferred MRE of 3.3Mt of LCE at its Solaroz lithium brine project in Argentina
• The MRE encompasses just 4777 hectares of LEL’s 12,000-hectare exploration license and includes the first five holes of its initial 10-hole drilling program
• Three drill rigs remain onsite for additional drilling across all 12,000 hectares and infill drilling is designed to upgrade the MRE to an indicated category
• Test production wells will also be installed in support of ongoing engineering to advance the company’s strategy to construct a 3000-tonne per annum LCE production plant at its Mario Angel concession
• LEL shares are down 1.23 per cent and trading at 80 cents at 10:29 am AEST

Lithium Energy (LEL) has announced a maiden inferred mineral resource estimate (MRE) of 3.3 million tonnes (Mt) of lithium carbonate equivalent (LCE) at its Solaroz lithium brine project in Argentina.

The initial MRE encompasses just 4777 hectares of LEL’s 12,000-hectare exploration project area, which includes the first five holes of its initial 10-hole drilling program.

The company carried out extensive geophysics around its Central Block of concessions, which included its Chico I, V and VI, Payo 2 South and Silvia Irene concessions, as well as its southern Mario Angel deposit.

Within the 3.3Mt LCE resource, LEL reported a high-grade core of 1.34Mt of LCE with an average concentration of 405 milligrams per litre (mg/l) of lithium at a 350 mg/l Lithium cut-off grade.

“This maiden resource estimate of 3.3 million tonnes of LCE confirms the potential for Solaroz to be a world-class lithium project, with reported lithium grades, brine volumes, Mg/Li ratios, and specific yields all being positive indicators for the potential economic future brine extraction at Solaroz,” LEL Executive Chair William Johnson said.

“Allkem has reported production of lithium carbonate from Olaroz since 2015 using traditional brine evaporation, with latest reported cash costs of only US$4,924/tonne LCE and reported Gross cash margin of US$47,814/tonne LCE.”

Located next to Allkem Limited’s (AKE) lithium facility in the Salar de Olaroz basin, the company’s Solaroz project lies in the heart of South America’s world-renowned lithium triangle.

Lithium Energy has three drill rigs in action on site with additional holes planned to target upgrades to the MRE across its full 12,000 hectares of Solaroz land and plans to use infill drilling to upgrade its MRE to an indicated category.

Meanwhile, test production wells will be installed in support of ongoing engineering and other technical and feasibility studies to advance its recently completed agreement to construct a 3000-tonne per annum LCE production plant at its Mario Angel concession.

LEL shares were down 1.23 per cent and trading at 80 cents at 10:29 am AEST.