Millennial Lithium Corp. (ML:TSX.V; MLNLF:OTCQB) reported that two holes drilled vertically to 355 meters and 400 meters at the Pastos Grandes project in Argentina in the Lithium Triangle have returned high lithium grades to depth. The Lithium Triangle is the area where Argentina, Bolivia and Chile meet and is home to over half of the world's identified supply of lithium. The two holes Millennial Lithium drilled in the northern part of the salar, according to the company, "ended in brine bearing formations and confirm that the salar's brine carrying capacity extends to much greater depths than encountered in previous exploration."
The company noted that its drilling has been confined to the northern part of the salar and it is in negotiations to expand the southern land package. "Future drilling will include the Southern end of the salar where lithium values are expected to be higher. Two historical holes drilled by Eramine SA in 2011, in the southern portion of Pastos Grandes returned average lithium grades of 558 mg/L and 566 mg/L, significantly higher than Eramine drill holes in the Northern portion."
Iain Scarr, AIPG CPG., VP Development and Exploration, commented, "We are very pleased that our work has improved on historical results and has significantly increased the potential we see at Pastos Grandes. . .we look forward to advancing this project in 2017."
Analyst Paul Renken of VSA Capital, in a Jan. 26 report initiating coverage on Millennial Lithium, noted that the company holds "prime acreage in lithium hot spot" with "tenements in three project basins in the highly prospective Salta and Jujuy Provinces, NW Argentina, within the area known as the Lithium Triangle. . .ML has the option to purchase 100% of the Pastos Grandes project, the more advanced of the three land holdings." Historic work at Pastos Grandes "identified salar brines with Li contents of 400mg/l to 600mg/l from surface with assays as high as 3,000mg/l."
Renken stated, "We expect the company to declare a maiden resource during H1 2017 for which it is fully funded with a PEA to follow soon after. The land position which ML holds is highly prospective with known lithium bearing salars that could rapidly be brought into production, making the shares a compelling early-stage opportunity. "
"ML represents a compelling entry into the prime lithium producing region of the world the Lithium Triangle. They have acquired strategically placed land packages upon or adjacent to known lithium brine bearing salars that are in various stages of current exploration and development. ML has raised sufficient capital in early funding to bring its primary project, Pastos Grandes, to NI43-101 compliant resource over the course of 2017," said Renken.
Renken concluded that "these attributes give ML the early developer advantage over many of its peers in the Triangle which will need longer property assessment periods. We also foresee a development capex cost advantage for ML at Pastos Grandes versus other salar developers in Argentina and elsewhere in the Lithium Triangle given its more compact basin and property position more in keeping with the appetite to fund by investors at this time than larger, riskier situations."
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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