ION Energy Ltd. told investors it has restarted water well drilling at the Urgakh Naran lithium project, in Mongolia.

The company, which aims to specialise in lithium brine exploration and development, in a statement said that three water wells have so far been drilled at the project, for a total of 682 metres of drilling, to return lithium values.

Drill holes UNWH-01 and UNWH-02 were each drilled to a depth of 300 metres, whilst UNWH-03 currently at 82 metres and is continuing.

“Having previously reported strong results from the lithological holes, the company is now pleased to share that we are completing our third water well at the highly encouraging Urgakh Naran project,” said chief executive Ali Haji.

“Until recently, ION’s team had anticipated not being able to return to the site and resume this phase of our drilling program until much warmer weather, later in March.”

“We’re excited to already be in possession of the equipment necessary for bailer sampling, pump testing and hydrogeological testing, to advance the inferred resource calculations at Urgakh Naran.”

Sampling work is expected to start in the field in the coming weeks, the company added.

Additionally, ION noted that it had raised an additional C$40,000 of capital, through the placing of 100,000 new shares priced at 40 cents each. Meanwhile, certain consultants and insiders of the company were granted an aggregate of 2.07 million incentive stock options, vesting at 30 cents each for up to two years.