The Canadian exploration company said that the new rotary hole will be used to perform pump testing.

Located in Salta province, the project is at the northern end of Hombre Muerto Salar, and near FMC’s producing Fenix mine and also Galaxy Resources’ Sal de Vida development stage project.

NRG Metals said that the rotary hole, which is located 15m east of the core hole, has been drilled to a depth of 153m and will be further drilled to a depth of 300-400m. The additional drilling will be based on results shown in the core hole, which is currently in progress.

Further, the Canadian firm said that the rotary hole is drilled at a diameter of 12 inches and after its completion, the hole diameter will be made bigger by widening it to 17 inches of diameter. The company also plans to install a 10-inch perforated casing to facilitate pumping tests.

NRG Metals may use the rotary hole as a production well based on the outcome of results.

The company said that drilling at the core hole has advanced to 222.5m of depth, and continues to encounter clastic sediments made up of conglomerate and poorly consolidated sandstone.

NRG Metals reported that brine was intersected from the top of the hole, and brine samples have been collected every ten meters from the surface to a depth of 100m with the help of a double packer sampling equipment.

The company, in a statement, said: “Once the hole reaches a depth of 300 meters, the interval from 300 meters to 100 meters will be sampled using double packer sampling equipment, and then drilling will resume.

“On site QA/QC for the sampling was directed by Cristian Avila of Montgomery and Associates, under the supervision of Mike Rosco, also of Montgomery and Associates, a Qualified Person under NI 43-101.”

In another development, NRG Metals said that drilling at the Salar Escondido lithium project in the Argentine province of Catamarca has reached a target depth of 400m.

The 8.5inch rotary hole at the site will be reamed to a 12.25inch diameter to enable installation of perforated casing, in preparation for sampling, said the company.