Lithium Chile (LITH.V) has released the assay results from the very first hole drilled at the Ollague lithium project in Chile, and the results are extremely promising. The lithium brine started at a depth of approximately 110 meters and the deeper the hole, the higher the lithium grade (which is normal as lithium zones ‘sink’ due to the different densities). From 180meters to 290 meters, Lithium Chile encountered 110 meters of economic grade lithium with values between 370 mg/l and 480 mg/l. The average grade of the lowest 60 meters was 470 mg/l, which is definitely viable (considering Millennial Lithium (ML.V) reported excellent economics using an average grade of 432 mg/l).
This is a great start of the drill program, and it confirms the Ollague project is very promising. That being said, we will need to keep a close eye on the Magnesium:Lithium ratio as the existing ratios are around 8-9, which is quite high and will have to be dealt with. The Mg:Li ratio at Millennial’s Pastos Grandes’ project is around 6-7 and ML could make it work, so Lithium Chile should be fine.
As this was just the first hole of a 4-hole drill program, we are looking forward to the assay results of the next three holes. Hole 2 was also drilled in the same relatively shallow structure on the southwestern edge of the salar whilst holes 3 and 4 will test the deeper zones. Holes 2 and 3 have already been completed as well, so we hope to see the assay results in September.