Cadence Minerals PLC (LON:KDNC) (OTC:KDNCY) has said a series of intensive desktop studies have now been completed for the lithium assets in San Luis Province, Argentina and the results look to be encouraging.
The NEX market-listed firm said there are “multiple indicators that confirm the presence of spodumene bearing pegmatite bodies, including geological structural features, aero-magnetic radiometric data analysis, satellite imagery and differentiation in granitic bodies.”
READ: Cadence Minerals begins exploration of Argentinian lithium assets
The group added that the net result is that out of the 55,773 hectares, comprising the six assets' total area, the geology team have identified 10,049 hectares as high-priority areas for the next phase of the exploration programme.
Cadence noted that finalised Environmental Impact Assessments have been submitted to the mining regulator for these high priority areas, with applications for drilling permits to follow.
The company said the project team are now in discussions with third party suppliers, including drilling contractors, and intend to fast-track the next phase of exploration as soon as regulatory approval is secured.
Kiran Morzaria, Cadence’s chief executive officer, commented: "The Board is delighted with the excellent progress the project's geology team have made in identifying high priority targets for lithium mineralisation across 18% of our tenure in Argentina.
“Pleasingly, they are now ahead of internal timelines and in a solid position to fast-track the inaugural drilling programme, once regulatory approvals are secured."
He added: "Whilst there is considerable work to complete, the Board remains focused on its long-term objective to prove up a viable hard rock lithium resource to meet the ever-growing demands of the global lithium-ion battery sector. The Board will keep shareholders apprised of fresh developments as they materialise."
Cadence currently owns 4% of the San Kuis Province assets via an earn-in arrangement.