Lithium junior Neo Lithium (TSXV:NLC,OTCQX:NTTHF) kicked off the week by reporting a maiden resource estimate for its Tres Quebrada (3Q) lithium brine project in Argentina, the world’s third-largest lithium producer.
The resource estimate, conducted over an area of 8,183 hectares, shows that 3Q has a measured and indicated resource of 714,242 tonnes of lithium carbonate equivalent at an average grade of 716 mg/L lithium. Its inferred resource stands at 1,339,546 tonnes of lithium carbonate equivalent at an average grade of 713 mg/L lithium. A cut-off grade of 520 mg/L lithium was used for both measurements.
“This maiden resource estimate highlights the significant potential of the 3Q Project,” said Dr. Waldo Perez, president and CEO of Neo Lithium, in a statement. “The size, grade and low impurities of the resource along with our preliminary process studies provide us with all of the building blocks as we quickly move to the Preliminary Economic Assessment phase.”
3Q consists of a salar and brine reservoir complex, and was discovered by Neo Lithium last year. It is located in the Lithium Triangle, an area of Latin America that is characterized by high-altitude salt flats, some of which contain elevated lithium concentrations.
“[The brine] has the right chemistry for a low cost evaporation process, contains potash as a valuable by-product, and lithium grades are equal or superior to most other known undeveloped projects and many producing mines,” Perez said at the time of the discovery.
In October, the province of Catamarca’s mining and environmental authorities gave Neo Lithium approval for an environmental report and work program for 3Q, allowing it to quickly move forward to the exploration phase. The company has also benefited from work done by Argentinian President Mauricio Macri, who is focused on making the country an attractive place for miners.
“Without a doubt, the president’s measures have brought back competition, predictability, and clear rules of the game to the mining sector, which has resulted in a lot of interest in lithium in particular,” Reuters quotes Mario Capello, subsecretary for mining development in Argentina’s Energy and Mining Ministry, as saying.
Neo Lithium’s 3Q project is located near the largest brine lithium mines and projects in the world, including SQM (NYSE:SQM) and Albermarle’s (NYSE:ALB) Atacama Salar, Orocobre (TSX:ORL) and Lithium Americas’ (TSX:LAC) Cauchari-Olaroz Salar and FMC (NYSE:FMC) and Galaxy Resources’ (ASX:GXY) Hombre Muerto Salar. Drill results show 3Q has the lowest magnesium and sulfate impurities of any known salar.
At close of day Tuesday, Neo Lithium’s share price was trading at $1.07. The company’s share price has remained neutral since the start of the year.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Neo Lithium is a client of the Investing News Network. This article is not paid-for content.