Well Six Delivers Exceptional 31% Porosity Results at Formentera

Patagonia Lithium's Well Six Delivers Exceptional 31% Porosity Results at Formentera Project

Patagonia Lithium Ltd (ASX:PL3) has announced outstanding borehole magnetic resonance (BMR) test results from Well Six at its Formentera Lithium Brine Project in Argentina. The Well Six porosity results at Patagonia Lithium reveal exceptional aquifer characteristics that could significantly enhance the project's production potential. The well recorded a maximum specific yield of 31% and demonstrated theoretical pumping capacity of 160,000 litres of brine per hour.

Key BMR Test Results Transform Production Outlook

The BMR gamma survey has revealed remarkable aquifer characteristics across Well Six's 462-metre depth. Furthermore, these comprehensive tests demonstrate industry-leading performance metrics that could substantially impact the project's resource calculations and production capacity.

Porosity Performance:

• Average total porosity: 22% across entire 462m log
• Maximum total porosity: 39%
• Average specific yield (Sy): 8%
• Maximum specific yield: 31% in Zone 7

Brine Zone Characteristics:

• Eight distinct zones identified below 88m depth
• Average resistivity: 1.21 Ohm.m (compatible with lithium brine)
• Previous lithium concentration: 412ppm lithium recorded in Well Six

Executive Chairman Phillip Thomas commented: "These BMR porosity results will have a substantial implication for the Mineral Resource calculation update. These results confirm the outstanding flow rates and lay the foundation for the production well hydrology. The Sy (specific yield) value is the drainable value which in well six was excellent."

Eight-Zone Aquifer System Reveals Strategic Production Targets

The detailed zonation analysis has identified optimal pumping zones and aquifer characteristics that validate the exceptional results. In addition, the comprehensive geological mapping provides a framework for sustainable brine extraction across multiple productive horizons.

Production Strategy:

• Main aquifers: Zones 3, 4, 5, 8 (primary pumping targets)
• Leaky/transition units: Zones 1, 2, 7 (supplementary flow)
• Aquitard/confining: Zone 6 (barrier layer)

The analysis reveals that Zones 3 and 4 represent optimal pumping initiation points. These zones contain sand and gravel formations that facilitate high-volume brine extraction whilst maintaining structural integrity. Moreover, the highly porous volcanic zones contribute significantly to the exceptional flow characteristics observed in testing.

Production Well Simulation Demonstrates Commercial Viability

What is Specific Yield and Why Does it Matter?

Specific yield represents the percentage of water that can be drained from an aquifer by gravity. In lithium brine operations, this measurement determines how much brine can be extracted from underground reservoirs without compromising long-term sustainability.

The specific yield calculation involves measuring the volume of water that drains freely from rock pores compared to the total rock volume. Higher specific yield values indicate more efficient extraction potential, directly affecting production economics and project viability.

For investors, higher specific yield values indicate greater extractable brine volumes, directly impacting production rates and project economics. The Well Six porosity results at Patagonia Lithium show exceptional 31% specific yield, positioning the project amongst Argentina's highest-quality lithium brine assets.

Well Six Production Capacity Analysis

The production modelling using an 8-inch diameter well demonstrates robust extraction potential based on comprehensive aquifer testing. However, the calculations incorporate actual geological conditions and proven reservoir characteristics from the BMR survey data.

Transmissivity Calculations:

• Layer 4 (Sand): 207 m²/day, 69m thickness
• Layer 5 (Gravel): 720 m²/day, 36m thickness
• Layer 8 (Sand/Silt): 72 m²/day, 140m thickness
• Total transmissivity: ~1,000 m²/day

Sustainable Production Rate:

• Target pumping rate: 160,000 L/hour
• Daily capacity: 3,930 m³/24 hours
• Peak potential: >200,000 L/hour with higher drawdown
• Aquifer sustainability: Confirmed for long-term extraction

The calculations utilise the Theim equation for confined aquifer systems, incorporating a 5-metre allowable drawdown and 300-metre radius of influence. These parameters provide conservative estimates that prioritise long-term aquifer health whilst maximising sustainable production rates.

Demonstration Plant Production Framework

The modelling indicates that four production wells spaced 300 metres apart could supply the planned demonstration plant's nameplate production. Based on the current Mineral Resource Estimate average of 296ppm lithium, this configuration would support 1,000 tonnes lithium carbonate annually.

Production Well Economics:

• Required flow rate: >27,000 L/hour per well minimum
• Well Six capacity: 160,000 L/hour (6x minimum requirement)
• Well spacing: 300m optimal distance
• Aquifer depth: 400m productive zone

This configuration provides substantial production headroom and operational flexibility for the demonstration plant phase. For instance, the exceptional performance metrics from Well Six suggest that fewer wells may be required than initially anticipated. This could potentially reduce capital expenditure and improve project economics significantly.

The well spacing calculations account for aquifer interference effects and sustainable yield maintenance. The 300-metre separation ensures minimal hydraulic interference whilst maximising reservoir contact and production efficiency.

Investment Thesis: Exceptional Aquifer Quality Drives Project Value

Resource Quality Indicators

The Well Six porosity results at Patagonia Lithium validate several key investment metrics that distinguish the Formentera project within Argentina's competitive lithium sector. Furthermore, the combination of high porosity, exceptional specific yield, and robust transmissivity creates optimal conditions for commercial brine production.

1. High-grade aquifer characteristics with 39% maximum porosity
2. Exceptional specific yield reaching 31% in optimal zones
3. Robust transmissivity supporting sustained high-volume extraction
4. Optimal well economics with single wells exceeding demonstration plant requirements

Production Scalability

With Well Six alone capable of producing 160,000 L/hour sustainably, the project demonstrates clear scalability potential beyond the initial demonstration plant. The aquifer characteristics support expanded production capacity without requiring proportional increases in well infrastructure.

Current Resource Position:

• Total Resource: 551,400 tonnes LCE @ 294mg/L
• Indicated Resource: 14,800 tonnes LCE @ 393mg/L
• Inferred Resource: 536,600 tonnes LCE @ 292mg/L

The resource base provides substantial inventory for expanded production scenarios. This is particularly significant given the exceptional aquifer performance demonstrated through the BMR testing programme. Consequently, the combination of resource volume and extraction efficiency positions Formentera for potential large-scale development.

Why Investors Should Track Patagonia Lithium

Exceptional Project Fundamentals

The BMR results position Patagonia Lithium's Formentera project amongst Argentina's highest-quality lithium brine assets. Additionally, the technical advantages demonstrated through comprehensive aquifer testing provide a foundation for sustainable commercial production and potential project expansion.

Technical Advantages:

• Superior aquifer characteristics with industry-leading porosity and specific yield
• Proven high-flow production potential exceeding demonstration plant requirements
• Strategic location in Argentina's established Lithium Triangle
• Comprehensive resource base of 551,400 tonnes LCE

Near-term Catalysts:

• Mineral Resource Estimate update incorporating new BMR data
• Seismic survey and additional well testing (Well Seven results pending)
• Demonstration plant development with confirmed production capacity
• Production well optimisation based on eight-zone aquifer model

Operational Excellence

The systematic approach to resource definition demonstrates management's commitment to technical excellence and de-risked development. Moreover, the detailed geological understanding reduces exploration risk and provides a robust foundation for production planning.

The BMR testing represents industry best practice for lithium brine evaluation, providing precise measurements of aquifer characteristics. These measurements directly impact production economics and distinguish Patagonia Lithium from exploration companies relying on less comprehensive assessment methods.

Capital Structure:

• Shares on issue: 207.1 million
• Unquoted options: 20.0 million
• Performance rights: 25.0 million

Key Takeaway: Patagonia Lithium has demonstrated exceptional aquifer quality at Formentera, with Well Six's 31% specific yield and 160,000 L/hour production capacity providing a strong foundation for commercial lithium brine production. The upcoming Mineral Resource Estimate update incorporating this BMR data could significantly enhance the project's value proposition in Argentina's competitive lithium sector.

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