Liberty One Lithium (LBY.V) announced on Friday it will start an exploration program on its 4,480 acres North Paradox lithium property in Utah. We haven’t focused on Utah in our previous updates as we always thought the property appeared to be secondary to its exploration efforts in Argentina, where it’s currently drilling a third hole on the Pocitos West deposit, where Liberty One could earn a majority stake from joint venture partner Millennial Lithium (ML.V).
However, the company mentions it hasn’t been able to define a ‘commercial prospect’ yet at the Pocitos West project. The first two holes indicate there are no lithium enriched brines beneath the sedimentation, which obviously is a disappointment. The positive preliminary exploration results appear to be caused by a clay-dominated zone which is also a conductor, but doesn’t host any brines. A third hole is currently being drilled approximately 9 kilometers north of the second hole and reading between the lines, it sounds like Liberty One Lithium will base its plans for Pocitos West on the results of this third hole. Should this hole be successful, it will continue to explore the land package, but it also sounds like if the third hole doesn’t hit, the company might reassess its strategy and try to assemble other Argentinean salar projects whilst it continues to work on its North Paradox property in Utah.
Fortunately the company still has a working capital position of C$10M, so its (financial) future doesn’t include a near-term capital raise anytime soon (perhaps other than the C$5M raise it announced last week).