Patagonia Lithium Ltd's Well 4 Pump Test Yields Promising Results
PL3 (PL3) Share Update November 2024 Sunday 17th
Patagonia Lithium Announces Promising Results from Well 4 Pump Test
Patagonia Lithium Ltd (ASX: PL3) has announced promising results from its recent pump test at Well 4, showcasing a strong flow rate and satisfactory lithium values. This development marks a significant step forward in the company's exploration efforts in Argentina's lithium-rich regions.
Instant Summary:
- Well 4 achieved a flow rate of 3,551 liters per hour.
- Lithium values ranged from 173ppm to 203ppm.
- Borehole magnetic resonance surveys planned for all four wells.
- Cores from wells 3 and 4 sent for further testing.
- Preparation underway for Well 5 at Cilon.
Pump Test Details
The pump test conducted at Well 4 (JAM24-04) demonstrated an impressive flow rate of 3,551 liters per hour through a 50mm pipe. This was achieved using drill airlift from a depth of 80 meters. The lithium assays from the well ranged between 173ppm and 203ppm, which are considered satisfactory for the well's current depth.
These results were obtained from SGS and Alex Stewart laboratories, confirming the well's potential given its strategic location near a watercourse and on the border of the concession. The high flow rate highlights the porosity of the sediments and the hydrological dynamics at play, suggesting a promising aquifer size.
Future Plans and Exploration
Patagonia Lithium is preparing for a borehole magnetic resonance (BMR) survey across all four wells, which will contribute to the mineral resource estimation (MRE) calculations. Additionally, cores from wells JAM24-03 and JAM24-04 have been dispatched to Core Laboratories in Western Australia for further analysis.
The company is also progressing with preparations for the drill pad for Well 5 at the Cilon site. This is part of their broader exploration strategy in the lithium triangle of northern Argentina, which includes the Formentera/Cilon and Tomas III projects.
Strategic Implications
The successful pump test at Well 4 is a crucial milestone for Patagonia Lithium, as it aligns with their goal to establish a 1,000-tonne lithium carbonate demonstration plant. The Ekosolve column design for this plant has been completed, indicating readiness for the next phase of development.
The positive results from Well 4's pump test are likely to boost investor confidence in Patagonia Lithium's exploration capabilities and future production potential. The consistent lithium values and high flow rate suggest that the company's strategic location in the lithium triangle could yield significant resources, which may positively influence their stock price.
Investor Reaction:
Analysts are expected to react favorably to the news, given the promising flow rates and lithium values reported. The planned borehole magnetic resonance survey and the upcoming drilling at Well 5 are seen as positive steps towards resource confirmation and expansion.
Conclusion:
Investors should keep a close watch on Patagonia Lithium's upcoming developments, particularly the results of the borehole surveys and the progress of Well 5. These factors will be critical in determining the company's future resource potential and impact on the lithium market.