Advantage Lithium Corp. (TSXV: AAL) says it expects the second set of samples from this hole will be reported later this month
SmallCapPower | September 20, 2017: Advantage Lithium Corp. (TSXV: AAL) Tuesday announced initial test results from one of the three completed holes at its flagship Cauchari JV Project in Argentina. Preliminary pumping test consisting of 17 brine samples from Hole CAU10 in the SE sector returned an average lithium grade of 678 milligrams per liter (mg/l) with sample results ranging from 585 to 724 mg/l lithium2 and Mg/Li ratios averaging 2.1/1. The second set of samples from this hole will be reported later this month.
Shares of Advantage Lithium climbed 12% to $0.58 on Wednesday.
Preliminary pumping test and sampling for the other two completed holes (CAU09 – ~2.5 km from CAU10 and located in SE sector, and CAU07 in NW sector) are scheduled over the coming weeks.
Completion of the initial three holes is part of the larger two-phase drilling program, which involves five deep rotary drill holes in the initial phase supported by a follow-up phase of 12 diamond drill holes. The initial phase is expected to be completed and sampled before 2017 end along with ~5 of the up to 12 diamond drill holes designed as monitoring and/or exploration holes. The second phase will be undertaken in 2018. The primary purpose of the drilling program is to significantly expand the project’s current resource base, which currently stands at 230 million cubic metres Inferred resource and in situ 470,000 tonnes of lithium carbonate equivalent (LCE) and 1.62 million tonnes of potash (KCL). The updated resource estimate as well as the follow up scoping, PFS and FS will be undertaken in Q1 2018, with potential for advancing the property through exploration towards development and production by 2018/2019.
David Sidoo, President & CEO said, “We are pleased to have completed the first holes of the program, working on site during the difficult winter period. The initial assay results from CAU10 are most encouraging and we look forward over the next few weeks to more results from the systematic sampling of CAU10 and the other holes in the program.”
Cauchari is a joint venture flagship asset with Orocobre Limited (TSX: ORL) located in the highly-prospective ‘lithium triangle’ that overlays Argentina, Bolivia and Chile and in close proximity (~20 kilometres) to Orocobre’s producing Olaroz Lithium facility. According to The Economist, the lithium triangle is thought to contain 54% of the world’s lithium resources. Advantage Lithium has the necessary capital ($18 million as of April 2017) and seasoned management team that would help in successfully completing the drilling program and advancing the project to production.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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