Argentina Lithium progressing in the Lithium Triangle
Governments from France to China are pushing for cars with combustion engines to be replaced by electric vehicles. These vehicles currently must be powered by lithium ion batteries, and global car manufacturers are vying to secure supplies of lithium. Since output has so far failed to keep up with increasing demand, the price continues to climb.
During March 2018, Argentina Lithium and Energy Corp. (TSXV: LIT | OTCQB: PNXLF) (“Argentina Lithium”) announced the expansion of its lithium portfolio in Argentina’s prolific “Lithium Triangle”. The Salar de Antofalla is the latest addition to the company’s list of projects, spanning more than 14,000 hectares of prospective salt flats.
The company’s President and CEO Nikolaos Cacos stated that he was very pleased to be acquiring a third lithium brine project that is located in one of the most sought-after salars in Argentina. The company joins some of the leading supply companies in exploring the area, including global lithium producer Albemarle.
The Salar de Antofalla is about 94 miles long and 3 to 4 miles wide and can be accessed via a provincial highway and unpaved roads. Reported grades from the salar include 350 mg/l lithium and 6,400mg/l potash.
Argentina Lithium has applied for a 100% interest in around 9,000 hectares of mining claims. The company has also entered into an option agreement to earn 100% of three properties totaling more than 5,300 hectares situated adjacent to the mining claims. Two granted mine concessions and a mine application cover these properties. The terms of the option agreement include certain cash payments and work commitments.
During the same month Argentina Lithium started the first drill program at its 100%-controlled Incahuasi Lithium Brine Project in the Incahuasi salar, which is also situated within the “Lithium Triangle”. Initial sampling of near-surface brines at the project returned up to 409mg/l lithium, while geophysical surveying indicates there is potential for lithium-rich brines throughout the asset.
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At the company’s Arizaro project, three initial drill holes confirmed the existence of subsurface brines. Follow-up geophysics and deeper drilling are planned to precisely locate brine bodies.
At a time when there is a global scramble to find lithium deposits, Argentina Lithium has managed to assemble more than 40,000 hectares of highly prospective lithium properties in the middle of the prolific “Lithium Triangle”. These projects are close to railroads, water sources, roads and power lines, which translates into lower costs during the development and production phases.
Argentina Lithium is a member of the Grosso Group that has been active in mineral exploration in Argentina for 24 years. Over this time the Grosso Group has built a vast network of industry and government contacts. This gives its member companies a distinct advantage over other companies in the acquisition, exploration and development of projects in the country. Since 61% of the world’s lithium reserves are contained within the “Lithium Triangle”, and Argentina produced 13% of global lithium supply in 2017, this is the place to be looking for new lithium deposits.
Demand for lithium is expected to surge by around 2.5 times over the next 7 years due to expanding battery markets, and investors in potential supply companies such as Argentina Lithium will be contributing to the growth of the energy storage revolution and reaping the associated rewards.