Drill Results Show 'Good Lithium Concentrations and Basin Continuity'

A Cantor Fitzgerald note reviewed new findings from this joint venture asset in Argentina.

In a Sept. 18 research report, Cantor Fitzgerald analyst Matthew O'Keefe described Advantage Lithium Corp.'s (AAL:TSX.V; AVLIF:OTCQX) recently announced results from Cauchari as "positive" and "returning good lithium concentrations and basin continuity." The data are from the company's phase 3 infill drilling and resource conversion program at its 75%-owned project in Argentina.

Drilling could add 1.43–3 million tons of lithium carbonate equivalent (LCE) to Cauchari's current resource that, already "large," stands at 3 million tons of LCE, indicated O'Keefe.

Relaying the recent findings, Kaip noted lithium brine was continuous between holes CAU07, CAU16, CAU17 and CAU18, all in the northwest sector. Brine sampling in holes CAU20 and CAU21, in the north aspect of the northwest sector, averaged 629 milligrams per liter (629 mg/l) lithium and 4,537 mg/l potassium from a 113–318 meter depth. It averaged 607 mg/l lithium and 4,691 mg/l potassium from a 125–265 meter depth.

O'Keefe pointed out that "grades and chemistry are also better than the current resource, which bodes well for a resource update," anticipated in Q1/19. A definitive feasibility study,a "key derisking milestone paving the way for project financing," would follow in Q2/19. With the completion of that study, "we expect the stock to rerate higher," he wrote.

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