Demand for lithium is expected to grow at a compounded annual growth rate of 11.75 percent, reaching a market size worth $15.45 billion by 2028, due to the popularity of EVs. Can supply keep up with this demand? It hasn’t so far, with the price of lithium rising strongly and holding its gains of the last two years.
This renewed focus on lithium is also shining a spotlight on the famed Lithium Triangle, where about 60 percent of the world’s lithium reserves are located. The Lithium Triangle spans portions of Chile, Bolivia and Argentina. With its rich lithium resource base and a stable, mining-friendly regulatory environment, Argentina has the perfect formula to become a leader in lithium production.
Argentina is already among the top five global producers of lithium, producing approximately 10 percent of the global lithium supply. And there is potential for growth as the Argentine government has set a goal of increasing Argentina’s lithium production substantially in 2022 and 2023. It’s no wonder Argentina is one of the most attractive regions for mining and exploration companies with potential to make further high-value lithium discoveries.
Argentina Lithium and Energy (TSXV:LIT
, OTC:PNXLF, FWB:OAY3) is a mineral exploration company focused on developing a portfolio of highly prospective lithium projects in Argentina. The company is a member of the Grosso Group, a resource management firm that has pioneered exploration in Argentina since 1993.
Argentina Lithium has a strong land position and extensive mining track record in Argentina with nearly 57,000 hectares consisting of four key projects located in the Salta and Catamarca provinces. The company’s properties are strategically located next to some of the world’s leading lithium producers and near key infrastructure that is vital to its operations.
The company’s 3,742-acre flagship project, Rincon West, is next door to the west and north of the Rincon Project owned by Rio Tinto, which has a large lithium deposit with an estimated 5.8 million tons of lithium carbonate equivalent grading 367 milligrams/liter. Rincon West is also across the salar from Argosy Minerals’ Rincon Lithium Project, with 245,000 tons of lithium carbonate equivalent grading 325 mg/L.
LIT’s drill results thus far demonstrate long intervals of lithium in brine grading between and above the grades of the resources for Rio Tinto and Argosy.
The company’s second project Antofalla North – is just 500 meters north of the project controlled by Albemarle Inc., one of the world’s largest lithium producers. The LIT project is also located approximately 25 kilometers west of Argentina's largest lithium producing operations at Salar de Hombre Muerto.
Argentina Lithium’s other properties include 25,000 hectares in the Incahuasi Salar and more than 26,000 hectares in the Pocitos Salar.
Argentina Lithium is led by Grosso Group’s management team which has a history of major mineral discoveries in Argentina, including the Mineros S.A. (TSX:MSA) Gualcamayo Gold mine, SSR Mining’s (TSX:SSRM) Chinchillas Silver Gold Zinc mine, Pan American Silver’s (TSX:PAAS) very large Navidad Silver Lead deposit and Blue Sky Uranium’s (TSXV:BSK) Amarillo Grande Uranium and Vanadium project.
- In July 2022, Argentina Lithium (LIT.V; PNXLF.OTC) announced a discovery of lithium in brine at the company’s Rincon West project, adjoining Rio Tinto to the southwest at the Rincon salar in far northwestern Argentina.
- The discovery, confirmed now with results from four widely spaced holes, demonstrates lithium values equivalent to the grades in Rio Tinto’s resource estimate.
- The stock is starting to get exciting and is anticipated to draw more interest from investors because the company has another five holes to report – two in for assay now, and three being drilled – with a maiden resource statement projected to be reported in April-May 2023.
- Antofalla North is Argentina Lithium’s second highly prospective project, which adjoins a large lithium resource controlled by one of the world’s largest lithium producers, Albemarle Inc., and about 25 kilometers west of Argentina's largest lithium-producing operations at Salar de Hombre Muerto.
- Other projects include Pocitos and Incahuasi, which are strategically located near high-grade lithium projects.
- The company is backed by Grosso Group Management Ltd., which has already made four world-class mineral discoveries in Argentina.
Rincon West is a prospective lithium project located in the Salta province in Argentina, in which Argentina Lithium holds 100-percent interest in 460.5 hectares and controls by option an additional 3,282 hectares. The project is located west of the Rincon Salar, which hosts two significant resource development projects reserves: Rio Tinto’s Rincon Project (which it recently acquired from Rincon Mining for $825 million), and Argosy Minerals’ (ASX:AGY) Rincon Lithium Project.
The property is situated in the Lithium Triangle with access to an international highway, pacific ports and a major electrical power corridor.
Rincon West’s 2022 drill results reveal similar grades to that of Rio Tinto’s and Argosy’s resources, including long intervals of lithium values ranging from 334 to 382 mg/litre, which are mid-grade lithium levels with good potential for profitability.
Argentina Lithium’s fully owned Antofalla North project is the company’s second flagship, considered also highly prospective as Rincon West. Its location overlaps both provinces of Salta and Catamarca, situated less than 20 kilometers from Argentina’s largest lithium-producing operations at Salar de Hombre Muerto. Antofalla North is also located just north of Albemarle Corporation’s (NYSE:ALB) Salar de Antofalla project which has grades of 350 mg/L of lithium and 6,400 mg/L of potassium.
The asset is a prospective 9,080-hectare lithium project, situated in the Puna region with access to a provincial highway and unpaved roads.
Argentina Lithium has conducted a geophysical survey at the project, which identified high-conductivity targets in the upper 100 meters and additional targets at depth.
The company plans to obtain appropriate permits, conduct transient electromagnetic soundings to delineate brine deposits, and drill up to six diamond holes in mid-2023.
Argentina Lithium’s Pocitos project controls approximately 20 percent of the Pocitos salar. The project area covers more than 26,000 hectares located in the Salta province, with access to an international railway, pacific ports, a provincial highway and a major gas pipeline.
The Pocitos project has had limited historic exploration, including geophysics, surface sampling and limited drilling. Four other public companies are exploring and increasing resources at Pocitos, including major producer Ganfeng. LIT’s plan is to concentrate on its first two major projects and the market will help to decide next actions at Pocitos.
The company has the option to acquire 100 percent of the Pocitos project.
Argentina Lithium’s fully owned, 25,000-hectare Incahuasi project is located in the Incahuasi Salar and basin, north of Lake Resources’ (ASX:LKE
) pre-production Kachi project.
In a 2017 exploration program, Argentina Lithium found maximum lithium values of 409 mg/L lithium and 1.56 percent potassium recovered in near-surface sampling to an 8-meter depth. Argentina Lithium also conducted four drill holes which confirmed lithium-bearing brines with average grades of 109 mg/L of lithium and 6,718 mg/L of potassium.
Argentina Lithium believes the project is underexplored and may have the potential to host quality lithium brine at depth. Since LIT controls nearly 100 percent of the salar, we are not expecting updates from neighboring companies to provide more information.
Nikolaos Cacos - M.I.M., President, CEO and Director
Nikolaos Cacos has over 30 years of management and advisory expertise in the mineral exploration industry. He has worked with Grosso Group since its inception and serves as a senior-level executive for all of its member companies. Cacos’ career includes administration and strategic planning for public companies. He currently serves as an officer and director of several TSX Venture Exchange-listed companies. He holds a master’s degree in international management from Heidelberg, Germany, and a Bachelor of Science degree from the University of British Columbia.
Miles Rideout - Vice-president of Exploration
Miles Rideout has 34 years of experience in advanced exploration practice, responsible business management, scientific team building and mining integration with local communities and indigenous peoples. Rideout has directly managed the acquisition and exploration of dozens of lithium properties in northern Argentina. He served as CEO of Latin American Minerals Inc. (TSX:LAT) for 5 years, during which he advanced gold and diamond projects in Paraguay. Rideout also spent 23 years with Quantec Geoscience Inc. where he initiated operations in South America and managed subsidiaries in several countries. He has experience in mine permitting, financing, construction and operations, including implementing the first operating mine in Paraguay. He participated in the discovery of several world-class deposits including the Collahuasi and Ujina copper-porphyry deposits, Veladero epithermal gold deposit and Navidad VMS/epithermal silver deposit. Rideout received a Bachelor of Science with Honors Certificate in Geophysics from Western University in 1987. Rideout is fluent in English and Spanish and has lived in Mendoza, Argentina for more than 20 years.
Joseph Grosso - Director
Joseph Grosso became one of the early pioneers of the mining sector in Argentina in 1993 when mining was opened to foreign investment. He was named Argentina's 'Mining Man of The Year' in 2005. His knowledge of Argentina was instrumental in attracting a premier team that led to the acquisition of key properties in Golden Arrow's portfolio. He has successfully formed strategic alliances and negotiated with mining industry majors such as Barrick, Teck, Newmont, Viceroy (now Yamana Gold) and Vale S.A. and government officials at all levels. Grosso's specialty is financing, negotiations, corporate and marketing strategy. He was an early and passionate adopter of best practices in environmental protection and socio-economic development through mineral exploration. He is the founder and president of Grosso Group Management Ltd.
John Gammon - Director
John Gammon has 40 years of experience in mineral exploration and management. His experience includes international positions with Falconbridge, assistant deputy minister mines and minerals with the Government of Ontario and, since his retirement, as ADM as a consultant working with industry, governments and universities. Gammon also spent a significant amount of time on the Aboriginal community and environmental issues. His knowledge of the Spanish language, South American culture and local societies coupled with his industry experience can assist the company with the advancement of its projects in Argentina.
Argentina Lithium is one of the most exciting exploration companies in the ideal location for lithium discovery, the Lithium Triangle. For the speculative thrills of exploration with the potential for rapid and large advances, and as controlled by one of the most successful discovery teams, learn more about this company.