Cauchari is a joint venture between Orocobre and Advantage Lithium, which is managing the exploration program.
Lithium producer Orocobre (ASX:ORE,TSX:ORL) has published an updated lithium resource estimate for its Cauchari joint venture project in Argentina.
The report shows lithium carbonate equivalent (LCE) JORC resources have more than doubled, with 4.8 million tonnes (Mt) of measured and indicated and 1.5 million tonnes inferred. The new resource is based on the results of the phase II and phase III drilling programs.
Cauchari is a joint venture between Orocobre and Advantage Lithium (TSXV:ADV,OTCMKTS:AVLIF), which is managing the exploration program and holds 75 percent of Cauchari. Orocobre owns 33.5 percent of Advantage Lithium’s issued capital and 25 percent directly in the joint venture.
“Our joint venture partners, Advantage Lithium have delivered a well designed and executed resource definition program that has more than doubled the total Cauchari resource. This result provides an opportunity to reassess future development options to maximise value for shareholders,” Orocobre Managing Director and CEO Martín Pérez de Solay said.
The update, prepared by FloSolutions SpA, has increased the resource to a volume of approximately 1,800 million cubic metres of brine at an average concentration of 476 mg/l lithium, for 4.8 Mt of LCE in the measured and indicated categories and approximately 600 million cubic metres of brine at an average grade of 473 mg/l lithium for 1.5 Mt of LCE in the inferred category.
The results of the estimate position the Cauchari JV as “the second largest undeveloped lithium project in Argentina,” said David Sidoo, founder and CEO of Advantage Lithium.
According to the report, results of the brine chemistry analysis carried out confirm the Cauchari brine is similar in composition to the brine in the adjacent Olaroz Salar from which Orocobre is successfully producing lithium carbonate using conventional lithium processing technology.
“The resource expansion is an outstanding result for the company, providing the opportunity to assess the possibility of expanding the future production rate for the project to 25 ktpa. The resource remains open at depth with extensive Deep Sand encountered in phase III drilling,” Andy Robb, VP project development, said.
Shares of Orocobre remained flat on Thursday (March 7), closing at AU$3.62 in Sydney. Meanwhile, shares of Advantage Lithium jumped 12.73 percent in Toronto, closing at C$0.62.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.