Economic concentrations of lithium in brine occur in circumstances where ground waters percolate through neighbouring lithium bearing rocks into a closed, continental basin that has not been subject to marine flooding throughout its geological history.
An arc of lakes, including Lake Blanche, to the north of South Australia’s Flinders Ranges has been independently defined as prospective by Geoscience Australia in a 2013 report titled ‘A Review of Australian Salt Lakes and Assessment of their Potential for Strategic Resources’. Argonaut, having assessed the potential of each lake on merit, determined that Lake Blanche has the best potential for economic lithium grades.
In the event economic concentrations of lithium are contained in Lake Blanche’s brines, the lake has the potential to be an internationally significant source.
No previous lithium brine exploration has been recorded in the Lake Blanche area although historic brine exploration has been undertaken at Lake Frome, to the southeast.