Patagonia Lithium Ltd has received approval from the Department of Mining Jujuy to drill well JAM26-09 at the Formentera lithium brine project in Argentina, clearing the way for tighter well spacing ahead of a resource update.

The approval allows drilling to proceed at a designated location between a local lagoon and depression. Operations are subject to a regulatory requirement to remain at least 500 metres away from permanent water bodies, prompting the selection of a site near recent rainfall depressions that aligns with previous magnetotelluric survey lines.

The new well is designed to reduce the distance between existing wells by up to 1.5 kilometres. Executive Chairman Phillip Thomas noted that the positioning should enhance geological continuity across shorter distances within the project's sand and clay units.

“Well 9 reduces the distance between wells 1,7 and 8 which, given the horizontal orientation of the various sand and clay units, should improve our mineral resource estimate category as the domains have continuity over shorter distances.”

— Phillip Thomas, Executive Chairman

Prior to starting drilling, Patagonia is finalising PVC gravel insertion and preparing the well for a Borehole Magnetic Resonance Gamma survey to evaluate porosity. The team will also conduct a 72-hour pump test to assess aquifer performance.

“Drilling should start after the BMR Gamma and pump tests are completed that take approximately six days to complete.”

— Phillip Thomas, Executive Chairman

Well JAM26-09 represents the final well required before the company issues a comprehensive updated Mineral Resource Estimate for the project.

Patagonia holds the Formentera and Cilon lithium brine projects across 19,500 hectares in the Salar de Jama within Jujuy province, alongside the Tomas III project at Incahuasi Salar in Salta Province. Meanwhile, drilling activity continues elsewhere in the wider portfolio, with the company recently having reported that Well 8 at its Cilon lithium project reached total depth.

Read the full announcement: Formentera Lithium Well 9 Approved