Millennial Lithium Corp (CVE:ML) (OTCQB:MLNLF) has unveiled a new resource estimate for its Pastos Grandes brine project in Salta province of Argentina, which showed around a doubling of tonnage in the measured and indicated (M&I) category, sending shares up.
The report showed 4.12 million tonnes of lithium carbonate equivalent (LCE) and 15.342 million tonnes of potash (KCl) equivalent in the measured and indicated categories.
READ: Millennial Lithium shares up as it posts positive lithium brine pump test results from Pastos Grandes
In the lower inferred category, there was a further 798,000 tonnes of LCE and 2.973 million tonnes KCl.
Compared to a 2017 estimate for the site, that represents an almost 100% increase in the measured and indicated LCE (lithium carbonate equivalent) tonnage (which was 2.131 million tonnes previously).
"This sizable increase in our resource positions Millennial as one of the most prospective lithium brine projects in the world with the potential for a significant lithium operation," said Farhad Abasov, President and CEO of Millennial Lithium.
"The company now has significant measured and indicated lithium resources which, on the completion of ongoing studies, have the potential to be converted to probable and possible reserves in support of our feasibility study on the company's planned lithium carbonate processing operation."
Abasov added that development work was continuing with the feasibility study and the construction of the pilot processing plant, both slated for completion in the second quarter of this year.
The new 43-101 standard measured, indicated, and inferred resource was derived from geological and grade/width block models derived from 15,135 metres of drilling defined over a 45-square kilometer footprint, the firm said.
Meanwhile, the chemistry of the Pastos Grandes brine is judged to be very favourable for processing.
The firm said that brine density and the ratios of magnesium and sulfate to lithium were as follows:
- Density of the brine ranges between 1.20 and 1.22 g/cm3
- Average Magnesium/Lithium ratio: 6.2
- Average Sulphate/Lithium ratio: 19.3
Last month, shares in the rescource group were boosted as it posted positive pump test results from the project.
The third test well was installed as a future production well, and until then, the firm had undertaken pumping of lithium brine to determine the parameters of the aquifer and chemical variation during 72 hours from March 5 to 7.
At a pumping rate of 19.4 litres per second (L/s), the drawdown was around 30 metres (m), with rapid water level recovery.
Shares surged over 12% in Toronto to $1.81 each.
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