Millennial Lithium (ML.V) is rapidly gaining even more confidence in the merits of the Pastos Grandes lithium project as two new exploration holes have also intersected a lithium-bearing brine zone. Hole 16 intersected two lithium zones with 68 meters of 499 mg/l and 17 meters of 495 mg/l before the hole was terminated at a depth of 641 meters. Considering Millennial Lithium was still drilling in the lithium-rich zones, it’s very likely the zone remains open at depth.
Hole 16 was drilled approximately 2 kilometers southeast of well 12, but the company also reported on a hole drilled another hole (17) approximately 1.5 kilometers southwest of well 12, and encountered a very thick interval of 545 meters containing 444 mg/l Lithium. The grade is in line with the resource estimate and the preliminary production plan, but a thickness of 545 meters starting at a depth of just 60 meters is extraordinary. The hole was terminated at 605 meters due to the limitations of the drill rig, but just like hole 16, the mineralization very likely continues at depth.
You notice hole 17 also contains a lower Magnesium:Lithium ratio (6 compared to 6.5-7.1 in hole 16), and that could confirm Millennial’s thesis hole 16 may be the depocenter of the basin. Millennial is still drilling at Pastos Grandes and one hole is being drilled 2 kilometers south of hole 15 (in the corner of the REMSA license, as part of its earn-in expenditures) while another drill rig will start drilling another hole about 1 kilometer northeast of hole 12. The huge distances between these holes confirm we may be in for a very nice resource update later on, and Millennial Lithium appears to have a good shot at increasing the current 3 million tonne LCE resource to around 5 million tonnes at approximately the same grade, which would further validate its development plans.
Another box was checked when ML also announced it has engaged Crédit Suisse as it slead financial advisor to help out on the construction financing package. Because once the final feasibility study will be published, Millennial very likely wants to move ahead to the permitting and construction phase as soon and as fast as practically possible, so having a very respectable lead financial advisor lined up is a very positive achievement.