Patagonia Lithium Drills Final Well Before Resource Upgrade at Salar de Jama
Key Takeaways
- Patagonia Lithium has commenced drilling JAM 26-09, the ninth and final well required before the company issues a comprehensive updated Mineral Resource Estimate for its Formentera lithium brine project.
- The existing MRE stands at 551,400t LCE @ 294mg/L — a figure that already represented a 319% increase from the prior estimate when released on 14 July 2025.
- Executive Chairman Phil Thomas has flagged that Well 9 is specifically prospective to upgrade resource category, not just volume, given the horizontal orientation of sand and clay units that may support domain continuity over shorter distances.
- Well 8 is advancing in parallel, with a BMR Gamma porosity survey imminent and a 72-hour pump test to follow — meaning the MRE trigger point is being approached on two fronts simultaneously.
- The company also holds 41,746ha of exploration concessions in Brazil across ionic REE clays, Niobium, Antimony and Lithium in pegmatites, providing supplementary project optionality beyond the near-term MRE catalyst.
Well 9 drilling underway — MRE update in sight
Patagonia Lithium Ltd (ASX: PL3) has commenced drilling well JAM 26-09, the ninth borehole in its Formentera lithium brine project at Salar de Jama, Jujuy province, Argentina. The well is positioned between wells 6 and 7, and carries a specific strategic significance: it is the last well required before the company issues a comprehensive updated Mineral Resource Estimate (MRE).
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What’s happening on site right now
Two wells are being advanced simultaneously, signalling an active and well-managed program.
Well 9 — JAM 26-09:
- Drilling commenced
- 30m of 12.5cm diameter steel casing being prepared for insertion and concreting into the top of the well
Well 8 — parallel activity:
- PVC slotted liner, gravel insertion and cleaning: complete
- BMR Gamma porosity survey: commencing (Zelandez arriving on site)
- 72-hour pump test: to follow the survey, to assess aquifer performance
The concurrent progress across both wells means the program is tracking toward its MRE trigger point on multiple fronts at once.
Understanding the MRE — why this final well matters
A Mineral Resource Estimate, or MRE, is a formal, independently verified calculation of how much mineralised material exists within a defined area and at what grade. For investors, the MRE is one of the most important benchmarks in a project’s development: it converts geological drilling data into a quantified, comparable resource figure that underpins project valuation and de-risking narratives.
Resources are classified by confidence level. Inferred resources are the least certain, based on limited data with wide-spaced drilling. Indicated resources carry significantly higher confidence, requiring closer-spaced data that demonstrates geological continuity. The practical consequence: a higher proportion of Indicated resources strengthens a project’s economics narrative and moves it closer to the threshold required for formal development studies.
The Well 7 brine results from earlier in the 2026 program already signalled potential MRE expansion, with lithium concentrations and aquifer continuity data contributing to the resource confidence picture that Well 9 is now positioned to advance.
Patagonia Lithium’s existing MRE, released on 14 July 2025, represented a 319% increase from the prior estimate. The current resource stands at 551,400t LCE @ 294mg/L, comprising:
- Indicated: 14,800t LCE @ 393mg/L
- Inferred: 536,600t LCE @ 292mg/L
The vast majority of the resource sits in the lower-confidence Inferred category. Executive Chairman Phil Thomas has indicated that JAM 26-09 is specifically prospective to address this, noting the horizontal orientation of sand and clay units may support an upgrade in resource category, not merely an increase in volume.
Phil Thomas, Executive Chairman
“Our exploration continues at a rapid pace with the commencement of drilling Well 9. This is an important well and I am expecting it to make a significant contribution to our MRE. Given the horizontal orientation of the various sand and clay units, this well is prospective to improve our mineral resource estimate category as the domains have continuity over shorter distances.”
The drilling program in context
In July 2023, a 10-well drilling program was approved for Formentera and a three-well program for Cilon. JAM 26-09 is the ninth borehole completed or underway in the Formentera sequence, following drill holes JAM-24-01 through JAM 26-08.
The full drilling history is summarised below.
| Well ID | Year | Status | Notes |
|---|---|---|---|
| JAM-24-01 | 2024 | Complete | 591 ppm Li recorded |
| JAM-24-02 | 2024 | Complete | — |
| JAM-24-03 | 2024 | Complete | — |
| JAM-24-04 | 2024 | Complete | — |
| JAM 25-05 | 2025 | Complete | — |
| JAM 26-06 | 2026 | Complete | — |
| JAM 26-07 | 2026 | Complete | — |
| JAM 26-08 | 2026 | Complete | — |
| JAM 26-09 | 2026 | In progress | Final well before updated MRE |
The technical specifications for JAM 26-09 are as follows:
- Location: UTM Zone 19S, East 706561.186, North 7411635.759
- Dip: -90 degrees (vertical)
- Target depth: 600m
- Collar height: 4,109.10m ABSL
The Formentera/Cilon project covers 19,500ha in Salar de Jama. Prior surface assays at Formentera returned results as high as 1,122 ppm Li, with 591 ppm Li recorded in drill hole JAM-24-01.
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What comes next
The near-term catalyst sequence is well defined. The BMR Gamma porosity survey at Well 8 is imminent, with the Zelandez team arriving on site. The 72-hour pump test to assess aquifer performance follows the survey. Well 9 is the final well required before the company issues its comprehensive updated MRE.
The company also holds 41,746ha of exploration concessions in Brazil, providing supplementary project optionality across ionic REE clays, Niobium, Antimony and Lithium in pegmatites. For investors watching the near term, though, the updated MRE remains the headline catalyst.
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