C29 Metals Ltd (ASX:C29) has entered into an option agreement with AIS Resources Ltd to acquire 80% of two highly prospective lithium-bearing salars within Argentina’s Salta Province, part of the world-renowned South American lithium triangle, for a total of US$2.38 million.
The Pocitos 7 and Pocitos 9 projects are drill-ready, with previous exploration indicating highly prospective layers of lithium-bearing brine potential.
C29 plans to drill-test these geophysical targets in the short term before commencing a program of lithium extraction process testing.
The company has begun due diligence processes, including collating and reviewing historical exploration data, while a drill rig and a local team has been secured for drilling the maiden reconnaissance exploration wells.
Project location within the South American Lithium Triangle.
Lithium opportunity
C29’s executive director Mark Major noted the unprecedented growth in the lithium market driven by rapid demand for increased electrical storage and from the electric vehicle market.
“The company believes the potential of lithium brine extraction that is quicker to enter the market and which operates at the lower end of the cost curve, will be critical in filling the void being created with the current and future demand fundamentals.
“We now have an opportunity to establish ourselves in this demand-driven market within the world-renowned lithium triangle of South America, a place with suitability established infrastructure in place.
“The Pocitos projects provide a real, potentially rapid pathway to production for the company in a high-growth market.
"Most of the initial groundwork has been done, with the TEM geophysical surveys highlighting areas of prospectivity. Several neighbouring properties have been undergoing reconnaissance and resource definition drilling, with excellent results reported; reinforcing our decision to pursue this opportunity.
“We have the required permits in place and the ability to undertake resource drilling as early as December this year. By the end of the option period, the company should be able to complete sufficient due diligence work in order to make a sound assessment of each project’s viability.”
Direct extraction
C29 has signed a non-exclusive intellectual property licence agreement with Ekosolve™ Ltd to use its technology and expertise to directly extract lithium from brines.
It will also Ekosolve's facilities at Melbourne University to undertake the analysis and test work needed to determine the feasibility of the project’s brines, with the aim of moving to pilot testing in late 2023.
“We acknowledge the processing via DLE technology will be a key fundamental to the success of the project,” Major said.
“New disruptive brine extraction technologies such as direct extraction are emerging and allowing brines with various concentrations of lithium to be processed. Ekosolve™ has been working on their extraction technology on similar brine chemistries for many years.
“Working with the Department of Chemical Engineering at the University of Melbourne, they have had great success with achieving battery grade lithium carbonate using their patent technology on Argentinean brines, which is considered to have low capital requirements compared with other technologies.”
Ekosolve’s technology has proven to be successful in extracting battery-grade lithium carbonate from brines encountered in the Salar de Pocitos for more than six years.
Forward plan
The Pocitos project has previously been surveyed using Transient Electromagnetic Vertical Electrical Sounding (TEM-VES) profiles, which were successful in identifying a significant low-resistivity zone at depth which is interpreted as being a large aquifer hosting the target lithium-charged brines.
C29 has now developed an exploration program to determine the hydrogeological characteristics of the aquifer, including drilling and various test-work on drill core, water sampling, flow-testing and more with the aim of establishing a JORC-compliant mineral resource estimate over the due diligence period.
Processing works using the EkoSolve™ solvent extraction technology will run in parallel with the establishment of the resource once brine samples are extracted.
Other DLE technologies known to be used successfully on other brines will also be tested to determine the most suitable lithium extraction process.
“Our initial due diligence work has been very positive, and we look forward to updating the market as we progress this opportunity for our shareholders,” Major added.
Existing infrastructure
Project location relative to known deposits, railway infrastructure and the major port of Antofagasta (LON:ANTO), Chile
Significant logistical infrastructure is already in place at the Pocitos projects.
The Salta-Antofagasta railway line runs within 20 kilometres of the project, including a station at the nearby town of Pocitos.
This provides a direct link for the project to the major Chilean port city of Antofagasta on the Pacific coast, an easy route to market refined lithium carbonate, which the project can produce.
In addition, Provincial Road Route 17 and a natural gas pipeline both transit through Pocitos, whilst the InterAndes power corridor passes 35 kilometres to the north.
Pocitos 7 and 9 projects are in the southern central part of the Salar de Pocitos salt-lake complex, which is relatively underexplored and therefore, presents an excellent opportunity.
C29’s concession areas are surrounded by land held by other lithium brine explorers, including major players such as Argentina Lithium & Energy, Power Minerals, Spey Resources and Recharge Resources.