MGX Minerals Inc. (CSE:XMG) (OTCMKTS: MGXMF) revealed drilling had started at its Francisco basin lithium project in Chile.
The work is being carried out by joint venture partner Chilean Lithium Salars (CLS) and will consist of a five-hole program aimed at targeting the brine aquifer that extends from the Northern Lagoon.
Samples here in May averaged 694mg/L lithium (milligrams per liter).
READ THE BIG PICTURE: MGX Minerals, the diversified mining, water and energy storage group, advancing on a number of fronts
In October this year, MGX said it had finalised the deal to acquire 50% of CLS, which holds three prospective lithium exploration projects in Chile.
These include the Francisco basin, Laguna Brava and Laguna Escondida lithium projects.
The drill program is testing for lithium to a depth of up to 300 meters as well as the lateral extent of the mineralization.
The 1st hole lies in the center of where the salt lagoon anomaly encountered very high pressure of fresh water and was shut down at 20 meters.
The lease area for Francisco basin comprises 12,900 hectares and an electromagnetic (EM) geophysical survey was completed in April this year.
The results indicated strong potential for two highly conductive brines zones where significant thickness and horizontal coverage may exist.
The project is part of MGX's lithium extraction activities.
With partner Purlucid it has developed a rapid technology, which eliminates or greatly reduces the physical footprint and investment in large, multi-phase, lake-sized, lined evaporation ponds.
It also can enhance the quality of extraction and recovery compared to traditional solar evaporation.
MGX is prepared to mobilize a rapid lithium extraction system to the Francisco Basin.
Shares in the company eased 2.15% to $0.45 in Toronto.
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