Argentina Lithium & Energy Corp. TSX-V: LIT is expanding its lithium project portfolio in Argentina’s Lithium Triangle to include over 14,000 hectares on the Salar de Antofalla in Salta province, Argentina. The new project includes a combination of 100-per-cent-owned property applications and properties with the option to earn 100 per cent 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 Nikolaos Cacos, president and chief executive officer. “We look forward to joining some of the leading lithium companies in exploring this exciting opportunity.”
The Salar de Antofalla is approximately 150 kilometres long and five to seven kilometres wide, and is located at an elevation of 3,900 metres. The salar is accessed by Provincial Highway 43 and unpaved roads, with the small town of Antofalla approximately 50 kilometres to the south and the city of Salta approximately 500 kilometes 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 Abermarle. Previous operators of the Abermarle property delineated lithium in brines, which Abermarle believes will be certified as the largest lithium resource in Argentina. Reported grades from the salar include 350 milligrams per litre lithium and 6,400 milligrams per litre potash.
These facts were used to help prioritize the acquisition of these properties. The reader is cautioned that that proximity to a discovery, past-producing mine or mineral resource does not indicate that mineralization will occur on the company’s property and, if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario. Results from other companies are not indicative of expected Argentina Lithium’s results as there has been insufficient exploration on the properties by Argentina Lithium.
Project acquisition details
Argentina Lithium has applied for 100-per-cent interest in approximately 9,000 hectares of mining claims in the north end of the Salar de Antofalla (staked properties). Furthermore, the company has entered into an option agreement to earn a 100-per-cent interest in three additional properties totalling over 5,300 hectares (optioned properties) situated adjacent to the staked properties. The optioned properties include two granted mine concessions and a third mine application. Terms of the option include cash payments totalling $3.5-million (U.S.) over 42 months, but limited to only $500,000 (U.S.) in the first 18 months. The option also includes annual exploration expenditure commitments of $500,000 in year 1, followed by $1.5-million in year 2, $2-million in year 3 and $3-million in year 4.
The contents of this news release have been reviewed and approved by Dr. David Terry, PhD, PGeo, a director of the company and a qualified person as defined in National Instrument 43-101.