Patagonia Lithium Ltd (ASX: PL3) has seen its shares rise more than 20 percent on news of lithium grading nearly 600 parts per million (ppm) identified from 200 litre packer tests done at the first drill well of its Argentinian Formentera Lithium Project in Argentina.
Assays from the maiden well JAM24-01 showed 591ppm lithium in an aquifer zone stretching 21 metres, and between the depths of 170 and 370 metres, grades were also high, at 235ppm: with this 200 metre interval also representing an important find for the company.
At the same time, the results showed low levels deleterious ions, with magnesium-lithium (Mg:Li) 1.49 at 591ppm, boron at 522ppm and calcium at 358ppm.
Patagonia executive chairman Phillip Thomas said he was ‘overwhelmed’ by the results.
“An interval of 200 metres with lithium values over 235ppm is truly an indication of a world class project,” he said.
“Additionally, we have the great brine flow results previously announced: brine flow is as important as lithium assay values and we have achieved evidence of both parts of the equation for a prospective successful project.
“The MT geophysics didn’t mislead us and we have a strong correlation of 0.3 ohm.m
with 300-500ppm lithium. I am looking forward to similar results from drill hole JAM 24-02.”
Patagonia was trading at 14.5c – a rise of 20.833 percent since the market opened – at 12:41 AEST.