Pursuit will now focus on its lithium carbonate pilot plant and associated feasibility and scoping studies for a commercial scale operation at Rio Grande Sur. Pic: Getty Images
Mining
Special report: Pursuit Minerals has more than quadrupled its Argentine lithium resource at Rio Grande Sur ahead of the start of a 250tpa pilot operation.
It moves the junior one step closer to becoming a commercial producer in one of the world’s top emerging lithium jurisdictions.
The updated resource incorporates geological and geochemical information obtained from two drill holes totalling 1063.5m within the Maria Magdalena and Sal Rio 02 tenements.
A total of 28 brine assays obtained via packer samples and accompanying drill core data were used as the foundation of the estimate.
The Rio Grande Sur resource now sits at 1.104Mt of contained lithium carbonate equivalent, grading 505.8mg/l Li with 591,800t LCE grading 515.1mg/l Li in the indicated category and 512,500t LCE grading 495.4mg/l Li in the inferred category.
Pursuit Minerals (ASX:PUR) managing director and CEO Aaron Revelle said the result elevates the explorer into a league that commands attention from major mining companies seeking significant lithium investment.
A sea change in Argentina’s political landscape with the election of its now President Javier Milei late last year has led to dramatic reforms to the country’s resources sector.
It has also attracted global majors into its ripe critical minerals scene – both Rio Tinto (ASX:RIO) and BHP (ASX:BHP) have entered the fray, pouring in upwards of $13b to acquire lithium and copper assets this year at a time of weak pricing.
The latest move to shake up the country’s mining scene is Rio’s $10b deal to acquire Arcadium Lithium (ASX:LTM), a counter-cyclical investment that cemented the mining giant’s belief in lithium’s long term prospects, direct lithium extraction processing tech and Argentina’s status as an emerging mining jurisdiction.
Its top brass recently reiterated projections lithium demand would grow fivefold by 2035, with a decision on the up to 60,000tpa LCE Rincon development in Argentina due at the end of 2024.
It is a show of confidence in Argentina’s lithium scene, with Rio Grande Sur among a handful of large, high-grade resources not owned by the majors.
By way of comparison, the more advanced Argosy Minerals’ Rincon brine, where a 12,000tpa LCE project is due for FID in H2 2025, is smaller and runs at a lithium grade of just 329mg/l.
“The scale of this resource opens the door to significant offtake discussions with several already underway,” PUR’s Revelle said.
“It’s clear this is no minor upgrade; it’s a transformational major resource with the potential to make a substantial impact on the supply chain.
“Pursuit continues to make progress at the lithium carbonate plant in Salta and anticipate first production of lithium carbonate in Q1 2025,” Revelle said.
“Further resource expansion opportunities also remain in the unexplored northern area which is yet to be drilled.”
PUR believes the resource upgrade places the Rio Grande Sur project in a globally significant position, with several acquisitions of lower grade resources having taken place in Argentina.
A notable transaction in the public domain is the Tecpetrol acquisition of Alpha Lithium, paying US$230m ($360m) for a project with a published NI43-101 resource of 2.19Mt LCE at 242mg/l Li in the indicated category, less than half the grade found at Rio Grande Sur.
PUR’s 250tpa lithium carbonate pilot plant is on track to begin first production following its recent commissioning with ongoing discussions with potential offtake partners and end users continuing.
The company continues strong dialogue with relevant government authorities for the environmental permitting for evaporation ponds to be constructed on site.
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.
