One World Lithium Inc (CSE:OWLI) may resume the next phase of its drilling program on the Salar del Diablo property in the State of Baja California, Mexico as early as June, it told shareholders on Wednesday.
The news comes as the Mexican federal government announced mineral exploration has been approved on June 1 in certain states of the country, including the State of Baja California where OWL’s Salar del Diablo project is located.
"We are impressed with the Mexican federal government’s successful balance to protect people from the COVID-19 virus and the current plans to potentially resume mineral exploration in parts of Mexico as early as June 2020,” OWL CEO Doug Fulcher said in a statement.
“We are excited about this next phase of drilling; drill hole DDH-3 is targeted in an area of a hydrothermal system as well as favorable geology and anomalous surface lithium geochemical results."
The area planned for the next phase of drilling is at the southern end of the Salar del Diablo lithium brine project, a “key location,” OWL said in a release. Both diamond drill hole DDH -3 and potentially DDH-4 is located 50 kilometers south of the drill hole DDH-2 in the north portion of the claim block.
Mike Rosko of Montgomery & Associates, the operator of the current drill program, said in a release that there is evidence of historic and currently active hydrothermal activity in the south near the proposed DDH-3 location.
“Hydrothermal activity can be a source of lithium, such as in the Lithium Triangle in Chile and Argentina,” Rosko told investors. “Depending on the results from DDH-3, the fourth hole is planned to be drilled in the same area."
OWL said it plans to retain Layne Drilling out of Hermosillo, Mexico to carry out the remainder of the drill campaign. The drilling firm did “an excellent job” on the last two phases of drilling, OWL said in a release.
Vancouver-based OWL also said that Dr Rajender Gupta from the University of Alberta will direct a proof of concept at the university’s laboratory on a separation technology that may eliminate the use of evaporation ponds. Critical fluid technology could be a low-cost method of separating lithium and other related minerals from a brine, and the separation plant would be placed at a producing brine well. OWL said that testing costs may be covered by a government grant and a formal agreement will not be completed until results are successful.
OWL recently announced a C$1 million non-brokered private placement of 20 million units priced at C$0.05 per unit, with each unit containing a full warrant exercisable at C$0.10 for a three-year term.
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