Argentina Lithium and Energy Corp. (LIT:TSX; PNXLF:OTC; OAY3:FSE) just reported that it has completed the geophysical surveys at its Rincon West lithium project in Argentina's Salta province, located in the "Lithium Triangle" that straddles Argentina, Chile, and Bolivia's borders and produces about half of the world's lithium. The company announced that the studies "expand the potential extent of conductive brine aquifers at the project and will be used to target drilling at the property." The drilling is expected to commence in May.
The Rincon West project encompasses 2,470 hectares of the salar — salt lake — basin and is located just west of the Rincon Project. Rio Tinto recently purchased the Rincon project from a private entity for $825 million.
Some 36.4 line-kilometers of transient electromagnetic (TEM) soundings were conducted at Rincon West. The company noted that "the surveys provide electrical resistivity data capable of detecting and delineating conductive strata potentially associated with concentrated lithium brines. TEM soundings are an advanced reconnaissance technique frequently employed in the exploration of lithium salars."
Miles Rideout, Argentina Lithium's VP of Exploration, noted, "The TEM surveys suggest that interpreted brine aquifers extend substantially further west and south than indicated by earlier electrical surveys, demonstrating greater potential than expected by the previous owners. We plan to begin drilling in May to test these targets.
"These new geophysical data allow us to assess potential aquifer quality and depth prior to drilling, which is extremely advantageous for targeting," he added.
The announcement from Argentina Lithium comes amid sky-high lithium prices. Fortune reported that the lithium prices have "surged a staggering 438% above last year," as supply struggles to keep up with electric vehicle battery demand.
"As a member of the Grosso Group, Argentina Lithium is firmly focused on Argentina for doing business. Joe Grosso and his people have been conducting exploration and development for decades in the LatAm country, and as such know exactly how to successfully navigate the sometimes complex processes in Argentina. After a period of relative inactivity due to lowering lithium sentiment, Argentina Lithium acquired several prospective brine lithium properties in the so-called Lithium Triangle, raised almost C$6 million, and is completing surveys and exploration permitting at the moment, as preparation for drill programs at two of their projects later this year.
"One of these projects is the Rincon West project, and interestingly the next door Rincon project (owned by Rincon Mining, a private company owned by Sentient Equity Partners) was recently acquired by Rio Tinto for $825M. With lithium product prices at all-time highs and over four times the levels needed to render 300-400Mg/L Li grades for brines economic, there seems to be a pretty good chance at exploration success this summer."
On Jan. 14, The Critical Investor reported that Argentina Lithium raised just under CA$6 million in a non-brokered private placement the end of last year and acquired options on additional properties.
"This survey at Argentina Lithium’s Rincon West Project is among our top priorities to scout for and acquire properties which have the potential to host lithium deposits," Rideout stated.
Argentina Lithium holds additional properties in the Lithium Triangle. Antofalla North includes 9,000 hectares of mining claims, with another 5,380 hectares optioned. Albemarle, a major lithium producer, holds land just 500 meters to the south of the Antofalla North project.
The Pocitos project has some 26,000 acres under option and has seen limited exploration. The company plans to conduct TEM surveys on the property this year.
The Incahuasi project, encompassing more than 25,000 hectares, is located 34 km from the town of Antofagasta de la Sierra in Catamarca province. Four drill holes confirmed lithium-bearing brines of an average of 109 mg/L lithium and 6,718 mg/L potassium. TEM surveys are planning for this year.
Argentina Lithium has nearly 74 million shares issued and 97 million shares fully diluted. Its market cap totals approximately CA$32 million.
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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