One World Lithium Inc (CSE:OWLI) (OTCMKTS:OWRDF) is seeing encouraging preliminary results from the first three holes of its spring drill program at the Salar del Diablo lithium brine project.
Vancouver-based OWL is in the midst of a 12 -hole, 4,250-metre drill program at Salar del Diablo, a 75,000-hectare property in Baja California, Mexico that covers an expansive salt flat. Drilling is designed to test three geophysical zones, a geochemical lithium anomaly, and certain geologic structures that may trap and concentrate brines.
Shares of OWL added 6.5% in morning trading Wednesday in Canada at C$0.25 and rose 5.8% on the OTC Markets to hit US$0.19.
Initial results from the first three holes drilled on the property are promising for the presence of brine. All three holes intersected aquifers with water samples having a pH balance of around 8.6, which indicate brines.
Additionally, the holes were drilled through a mudstone layer near the surface of the Salar that may have trapped water-filled aquifers further below the layer. OWL said that there is “substantial” water in coarse sands below the mudstone layer that contain high flow rate aquifers.
“Drilling to date demonstrates that there are multiple aquifers in the northern part of the Salar which indicates that the entire Salar could be very prospective,” the company said in a release, highlighting the distance between drill hole 2019-9 in the north and 2019-11 to the south is 14 kilometers.
The company has added an extra drill crew to keep the drills turning 24 hours a day, it said in a release.
According to OWL, local ranchers have reported that several wells in the area contain brine, which the company hopes to follow up with further testing during the latter portion of the drill program.
OWL also announced that it had closed the final tranche of its private placement, raising a total of C$2.1 million. The proceeds will be used primarily to advance Salar del Diablo.
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