BRISBANE, Australia,
Jan. 9, 2019 /CNW/ -- Orocobre
Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the
Company") provides the following update on the completion of
drilling and pumping test activities at the Cauchari JV property
located in Jujuy Province, Argentina.
The exploration program is being managed by JV partner
Advantage Lithium Corp. ("Advantage Lithium") (TSX
Venture: AAL) (OTCQX: AVLIF) who hold 75% of Cauchari.
Orocobre owns 33.5% of Advantage Lithium's issued capital and 25%
directly in the joint venture.
Highlights:
- Phase III infill drilling and resource conversion program was
completed at the end of 2018 with 26 holes drilled in Phase II and
III. An updated resource estimate in Q1 CY19 is expected to bring
current inferred resources into the Measured and Indicated
categories
- Drilling in the deep sand unit at CAU26 and deeper drilling on
the CAU12 and CAU13 platforms confirms a significant expansion in
the unit thickness. CAU12 has intersected more than 249 m of sand dominated material. Drilling has
also expanded the aerial extent of the unit. The deep sand unit
remains open at depth, where holes were terminated in sand and
interbedded sand units
- Brine analysis from CAU19 in the SE Sector averaged 611 mg/l
lithium and 4,483 mg/l potassium in the deep sand beneath the upper
sequence of evaporites and finer grained sediments which averaged
427 mg/l lithium. Brine sample results are pending for CAU26, CAU12
and CAU13
- The CAU11 30 day constant rate pumping test was completed on
November 24 (see ASX announcement
dated 28 November). The test was carried out at an average pumping
rate of 18.4 l/s with the lower part of the well screened in the
deep sand unit. Brine samples collected during the pumping test
indicate that lithium and potassium concentrations remained
constant throughout the test and averaged 512 mg/l lithium and
4,735 mg/l potassium
- The CAU07 30 day constant rate pumping test continues in the NW
Sector at a rate of 22 l/s. Brine sample results from the first
seven days averaged 647 mg/l lithium and 4,980 mg/l potassium with
a Mg/Li ratio of 2.2:1, with final results expected end of
January 2019.
Orocobre Managing Director and CEO Mr Richard Seville commented, "We are very pleased
to have completed the Phase III drilling program at Cauchari and
commenced the engineering for the Feasibility Study. The Phase III
drilling program has successfully extended the footprint of the
resource area to the south and at depth. Updating the resource
estimate is expected to bring resources into Measured and Indicated
categories in Q1 CY19. The thick sand sequence intersected by the
recent drilling is very significant and shows a similar geology to
the deeper holes drilled at Olaroz in recent years."
Drilling Update
The Phase III drilling program has been completed with some of
the deepest holes drilled in the Cauchari-Olaroz basin to date,
reaching a maximum depth of 617 m in
CAU26, with the deep sand unit present at that depth. Drill hole
CAU19 was completed in the southwest of the SE Sector to a depth of
519.5 m. This hole intersected the
deep sand unit from 434 m to
519.5 m (a thickness of
>85 m), with sandy units
continuing at the end of the hole. The extent of the deep sand unit
is further defined by intersections in drill holes CAU11, CAU12,
CAU13 and CAU26. In CAU12 the deep sand unit extends over more than
249 m vertically, beginning at
360 m below the surface and
continuing to the end of the hole at 609
m.
Brine samples from CAU19 in the deep sand unit averaged 611 mg/l
lithium and 4,483 mg/l potassium with a Mg/Li ratio of 2.1:1, while
the lithium concentration in the overlying evaporite and clay
sequence averaged 427 mg/l over a 300
m interval. Confirmation of the deep sand unit's substantial
thickness and the elevated brine concentration found in CAU19 are
excellent results. Brine sample analysis is pending for CAU12,
CAU13 and CAU26. Drilling has confirmed the positive
characteristics of the deep sand unit in terms of both porosity and
permeability for future extraction.
CAU25 was drilled in the north of the SE Sector, north of CAU22.
CAU25 intersected a sequence of clay, halite and interbedded fine
sand units to a depth of 427 m. Brine
sampling returned an average concentration of 497 mg/l lithium and
4,045 mg/l potassium from 169 m to
345 m depth, with a low Mg/Li ratio
of 2.6:1.
CAU26 is located in the southern region of the SE Sector and
successfully intersected the westward extension of the deep sand
unit.
Drill holes CAU12 and CAU13 were deepened to determine the
thickness of the deep sand unit, as previous drilling at these
sites had only intersected the upper part of the unit. This new
drilling has confirmed a thickness >249
m in CAU12, and a thickness >100
m in CAU13 with both holes terminated in the sand. The deep
sand unit appears to have favourable porosity and permeability
characteristics. Core samples are currently being analysed for
drainable porosity and other physical parameters in the GSA
laboratory in the US. The deep sand unit appears to constitute an
important source for future brine production in addition to the
sands and gravels of the NW Sector of the project.
Pumping Tests
The 30 day constant rate pumping test has been completed on test
production well CAU11 in the SE Sector. This test was performed at
a pumping rate of 18.4 l/s with a constant drawdown of 25 m in the pumping well. Water levels were also
measured in a network of surrounding observation wells completed to
different depths relative to the deep sand unit. Brine
concentrations were monitored throughout the test. The brine
concentration averaged 512 mg/l lithium and 4,735 mg/l potassium
throughout the test with a Mg/Li ratio of 2.6:1, confirming the
results of the 48 hour pumping test conducted in February 2018 (see ASX announcement dated 6
March).
The 30 day constant rate pumping test in CAU07 is underway in
the NW Sector and will be completed in mid-January. The pumping
test is carried out at a rate of 22 l/s with a drawdown of
40 m. Assays received for the first
seven days of the test averaged 647 mg/l lithium and 4,980 mg/l
potassium, with a Mg/Li ratio of 2.2:1. The CAU07 pumping rate is
limited by well construction constraints and higher pumping rates
are expected in future production wells based on the observed
aquifer conditions. Brine samples are collected at regular
intervals during the test and complete analyses are expected by the
end of January 2019.
The tests provide additional information on aquifer
characteristics as an input to the three-dimensional groundwater
model that is being developed to estimate lithium reserves and to
develop a production schedule for the project. The pumping tests
also confirm the minimum pumping rate to be expected for production
pumping wells, in line with the company's previous
expectations.
For more information please contact:
Andrew Barber
Investor
Relations
Manager
Orocobre
Limited
T: +61 7 3871
3985
M: +61 418 783
701
E: abarber@orocobre.com
W: www.orocobre.com.au
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Qualified Person's/Competent Person's Statement
The
information in this report that relates to exploration reporting at
the Cauchari JV project has been prepared by Mr Murray Brooker. Mr Brooker is a geologist and
hydrogeologist and is a Member of the Australian Institute of
Geoscientists. Mr Brooker is an employee of Hydrominex Geoscience
Pty Ltd and is independent of Orocobre. Mr Brooker has sufficient
relevant experience to qualify as a competent person as defined in
the 2012 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. He is also
a "Qualified Person" as defined in NI 43-101. Mr Brooker consents
to the inclusion in this announcement of this information in the
form and context in which it appears.
About Orocobre Limited
Orocobre Limited (Orocobre) is
a dynamic global lithium carbonate supplier and an established
producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX:
ORE), (TSE: ORL). Orocobre's operations include its Olaroz Lithium
Facility in Northern Argentina,
Borax Argentina, an established Argentine boron minerals and
refined chemicals producer and a 33.5% interest in Advantage
Lithium. For further information, please visit
www.orocobre.com.
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SOURCE Orocobre Limited
