Pursuit has clear path to Rio Grande Sur lithium production, PFS nears completion

• Pursuit plans to move directly into a 5,000tpa operation with the 250tpa Pilot Plant remaining in Salta for ongoing batch production
• Pilot Plant output continues to support delivery of 99.5% lithium carbonate samples to prospective offtake partners
• The company is evaluating gold, silver and copper acquisitions in Argentina to complement Rio Grande Sur 

Special Report: Pursuit Minerals’ PFS for a 5,000tpa lithium carbonate operation at Rio Grande Sur in Argentina is on track, with the final pond design for stage 1 complete. 

Several milestones have been passed, including the completion of detailed pond design – a critical foundation for evaporation-based lithium production. 

Current PFS work programs encompass circuit optimisation, process modelling, geological block modelling updates, detailed engineering design, infrastructure planning and the integration of pilot plant data into commercial-scale assumptions.

Regulatory and permitting activities are progressing in parallel, with environmental studies and approvals under review, together with active engagement with provincial authorities, community stakeholders and relevant government agencies in Salta.

The feasibility study remains on schedule for completion by the end of Q3 or start of Q4 2025, ensuring Pursuit Minerals (ASX:PUR) can move towards production. 

Major expansion at Mito 

Pursuit’s development roadmap is structured for a major expansion at the Mito tenement following the initial 5000tpa operation, adding a further 12,500tpa of capacity and lifting total planned production to 17,500tpa. 

This planned output expansion is equivalent to the first stage of production at the Olaroz project originally developed by Orocobre between 2013-2015, later part of the Allkem/Arcadium portfolio acquired Rio Tinto for US$6.7 billion which completed in March this year.

Mito is one of five tenements that comprise the Rio Grande Sur project, covering 8669 hectares in the north-western area of the asset area. 

In response to prevailing market conditions and feasibility study feedback, Pursuit will move directly into a 5,000tpa commercial facility at Rio Grande Sur, rather than incremental relocation of the 250tpa pilot plant. 

The pilot plant will remain in Salta, where it will continue batch production using synthetic brine in the interim and later evaporated brine sourced from test ponds to be constructed at María Magdalena, the planned location of the pumping well field for the 5,000tpa operation.

Positive lithium market backdrop 

PUR managing director Aaron Revelle said the company was encouraged by its strong progress against a backdrop of renewed positive sentiment across the lithium sector. 

Optimism was sparked following news last week that China’s largest lithium battery producer CATL has been forced by Chinese regulators to suspend operations at the Jianxiawo lepidolite mine in Jiangxi province.

Benchmark Mineral Intelligence estimates the mine produces around 3% of the world’s lithium raw material supply, making the suspension a bellwether for sentiment on lithium pricing, which has been crunched by a supply flood following 2022’s price boom.

It’s the second time the mine has been shut in less than a year. This time it will reportedly last for at least three months and is due to non-compliance with permitting requirements.

“Disciplined approach to project development” 

“Pursuit’s decision to target an initial, capital efficient scale reflects a pragmatic and disciplined approach to project development,” Revelle said. 

“While others chase 40,000–150,000tpa operations requiring multi-billion-dollar CAPEX and carrying significant execution risk at a time of subdued prices, our strategy is deliberately set at a level that can attract realistic financing and investor support. 

“This positions Pursuit to deliver achievable production, generate returns, and then scale in step with market demand with lithium prices currently holding firm around USD $11,000 per tonne exposing the weakness of over-stretched projects, but rewarding disciplined developers with bankable plans.”

Multi-metal growth strategy in the works 

With high-purity lithium carbonate samples already in the hands of potential offtake partners, Pursuit is moving to convert customer interest into binding agreements.

In parallel, Pursuit is accelerating its review of strategic acquisitions in gold, silver, and copper to complement Rio Grande Sur.

This disciplined dual-track strategy ensures near-term progress toward cash flow from lithium while creating a multi-commodity growth platform in Argentina, designed to maximise shareholder returns in a tightening global resource market.

This article was developed in collaboration with Pursuit Minerals, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.