Ann: Drilling Update, page-164

I'm not discounting Southern Candelas just yet Billy.

Again from Munk.

Six Characteristics Common to Continental Lithium Brines

" The third characteristic is evidence of hydrothermal activity. THIS LIKELY PLAYS A SIGNIFICANT ROLL IN THE FORMATION OF LITHIUM RICH BRINES for several reasons:

(1) it provides a hot water source for enhanced leaching of Li from source rocks;

(2) it is also likely a direct source of Li from shallow magmatic brines and/agmatic activity;

(3) it may play a role in the con- centration of Li through distillation or “steaming” of thermal waters in the shallow subsurface;

(4) thermally driven circulation may be an effective means for advecting Li from source areas to regions of brine accumulation; and

(5) it can result in the formation of the Li‐rich clay mineral hectorite, which can in turn be a potential source of Li to brines if leaching and transport occur from the clay source."


Just how this fits our Candelas basin is the question.

If they were in proximity to a hydrothermal with hole 2 then what does this mean for the larger deep basin structure further south of hole 2.

Ultimately Candelas doesn't need to have continuous high grade brines, but if it has several high grade brine sources ?

We r dealing with an immature system (geologically) so it follows that there probably won't be continuous high grades thru Candelas. But if there is a slow up dip basement structure to the south of Candelas then as long as there is minimal hydrothermal intervention then we may see decent grades to the south as well.

Gr.