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Orocobre hikes lithium resource at Argentina project fourfold


By: Esmarie Swanepoel
1st April 2011
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PERTH (miningweekly.com) - Lithium-miner Orocobre has increased its resource more than fourfold to 6,4-million tons of lithium carbonate, following the completion of a resource definition drilling programme at its Salar de Olaroz project, in Argentina.

The ASX- and TSX-listed Orocobre said on Friday that the drilling programme also confirmed an attractive brine chemistry, with an average magnesium to lithium ratio of 2,4 reduced from the 2,8 previously reported.

�We are delighted to have completed this stage of the programme and produced a measured and indicated resource of 6,4-million tons of lithium carbonate, more than a fourfold increase of the previous inferred resource of 1,5-million tons,� said MD Richard Seville.

He noted that the company�s original 2008 drilling programme had highlighted the challenges of assessing the immature, soft sediment salars, which are typical of Argentina.

�We have developed state of the art techniques to collect the quality of data necessary for a resource estimate at these confidence levels,� he added.

�The grade of our resource, even using no cut-off grade, is high and reduces capital costs of ponds, as less evaporation time is required. The large, broad surface area of the Olaroz salar, and consistently high grades at depth, give us confidence that attractive grades will be maintained over time in a potential production scenario,� said Seville.

He noted that these resource attributes, along with the quality of the company�s data, differentiated the Salar de Olaroz projects from other projects.

Meanwhile, Seville noted that Orocobre was currently in the final stages of its definitive feasibility study for the project, and expected results shortly.

Edited by: Mariaan Webb