Argentina Lithium & Energy Corp. [LIT-TSXV, PNXLF-OTCQB] said Friday March 9 it is expanding it lithium project portfolio in Argentina’s Lithium Triangle to include over 14,000 hectares on the Salar de Antofallo in Salta Province, Argentina.
The new project includes a combination of 100%-owned property applications and properties with the option to earn 100% interest through a combination of cash payments and work commitments.
“I’m very pleased to be able to report to our shareholders that not only are we acquiring a third lithium brine project, but that it is located on one of the most sought-after salars in Argentina,” said Argentina Lithium President and CEO Nikolaos Cacos.
Argentina Lithium is a member of the Vancouver-based Grosso Group of companies.
The Lithium Triangle, including parts of northwestern Argentina, produces about half of the world’s lithium and hosts approximately 70% of the known lithium reserves. Most lithium in this area is in salt lake (salar) brines.
Investor interest in the lithium sector is tied to the fact that lithium batteries have become a front-running rechargeable energy storage medium, particularly for the rapidly growing electric vehicle industry, creating a strong demand forecast for lithium.
The Salar de Antofalla is approximately 150 km long and 5-7 km wide, and is located at 3,900 metres above sea level. The salar is accessed by Provincial highway 43 and unpaved roads, with the small town of Antofalla approximately 50 km south of the city of Salta approximately 500 km away.
The geological environment at the Salar de Antofalla is similar to other Salars in the Puna region where lithium and potash are found.
Several other companies are exploring properties on the salar, including global lithium producer Albermarle Corp. [ALB-NYSE]. Previous operators of the Abermarle property delineated lithium in brines, which Albermarle believes will be certified as the largest lithium resource in Argentina.
Argentina Lithium recently said it has obtained the necessary permits to drill test its 100%-owned Incahuasi Lithium Project in Catamarca Province, Argentina. The company plans to move directly into a first drill program, and is now obtaining the necessary permits in order to do so.
Access to the Salar is through a gravel road from the town of Antofagasta de La Sierra, approximately 34 km to the northeast.
Argentina Lithium has the option to earn a 100% interest in 20,500 hectares in the central area of the Arizaro Salar in Salta Province. The company believes Arizaro is underexplored and in particular supports conditions for quality lithium brines at depth.
The company said it recently expanded the property holdings at the Arizaro project by an additional 7,030 hectares. Geophysical and seismic surveying is the next step prior to a Phase 11 drill program to test for deep brines.
On Friday, Argentina Lithium shares rose 1.47% or $0.005 to 34.5 cents. The 52-week range is 60 cents and $0.075.