Lithium Chile (LITH.V) has now started its previously announced four hole drill program at the Ollague lithium project in Chile, where it will follow up on a Transient Electromagnetic Survey which covered 25 square kilometers of the project. This TEM survey indicated the existence of several continuous conductive units over the property, with an average thickness of 20-200 meters and within the first 120 meters from surface.
Lithium Chile has taken samples from some shallow water wells to get a preliminary idea of what it’s chasing, and one well returned a sample which contained 1220 mg/l lithium (which is higher than the 1140 mg/l quoted in Lithium Chile’s corporate presentation) at a depth of 110 meters. According to the initial interpretation, this water well seems to have penetrated the top of one of the conductive horizons which were discovered during the VTEM survey, and this specific zone will be the target of the current drill program.
The initial drill program will consist of 4 holes reaching a depth of 250 meters each, and we hope to see the assay results sooner rather than later. As a brief reminder, Millennial Lithium (ML.V) was able to release a very robust PEA based on the average grade of less than 400 mg/l at its Pastos Grandes lithium project in Argentina. So whilst we don’t expect to see 1220 mg/l throughout all assays, we would hope for a grade of 400-600 mg/l. Anything higher than that should be seen as a huge success.
Once this initial 4 hole program will be completed, Lithium Chile is planning to use the same approach on its 4 other advanced stage exploration projects. Drill 4 holes, and see what comes out of the ground.
The share price has recently come under pressure as the C$1 placement which was completed in March has now become tradeable, and the inevitable warrant-clippers are, well, clipping their warrants and selling the stock.