Deep drilling at the Cocina tenement confirmed high-grade lithium brine over a 336m interval to 354m depth, returning a 975mg/l lithium and 7273mg/l potassium, including a peak assay of 1614mg/l lithium and 10,610mg/l potassium.

LPI CEO Martin Holland told investors today that the hole was significant, as it demonstrated that porous sediments exist below the 200m depth of the resource drilling.

“It confirms the potential for a major resource extension,” he said today.

The deposit remains open at depth.

“It now changes the scale of this project exponentially,” Holland said, adding that the deep hole suggested the brine body was extensive.

“We can now say we’re sitting on a massive deep pond of lithium.

“We believe this could potentially put LPI on the map as the 50% owner of one of the best undeveloped lithium brine projects in the home of lithium.”

A maiden JORC resource estimate will be calculated by April, with the project already hosting a NI 43-101 estimate of 574,000 tonnes of lithium carbonate equivalent grading 1250mg/l lithium and 8970mg/l potassium.

Holland said the existing resource was already close to twice the grade of average brine projects – and likely to improve.

Maricunga is already the highest grade pre-production project in Chile, and Holland said the resource update could make it second in the world in grade to Atacama in Argentina.

Around $US40 million has already been spent on the project to date.

LPI owns 50% of Maricunga in joint venture with Minera Salar Blanco and Minera Li.

The Sydney-based company will embark on a roadshow in the first half of March in North America and Chile.

LPI had $A7.1 million cash at the end of December.

The company listed on the ASX in June last year, raising $8 million in an initial public offering at 20c per share.

Shares reached as high as 50.5c in July last year, and rose by more than 5% today to 40c.