Overview
Demand for lithium is expected to reach 3.8 million tons by 2035, driven by increased demand in batteries for electric vehicles (EVs). 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 Lithium and Energy (TSXV:
LIT, OTC:PNXLF, FWB:OAY3, OTCQX:LILIF) 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 67,000 hectares in 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.
In September 2023,
Argentina Lithium announced that it had secured an important strategic investor. Peugeot Citroen Argentina S.A., a subsidiary of global automaker Stellantis, invested the equivalent of US$90-million in Argentina pesos to acquire a 19.9% interest in Argentina Lithium’s subsidiary Argentina Litio y Energia S.A. The two companies also negotiated a seven-year
offtake agreement, in which Stellantis will buy up to 15,000 tonnes per year of lithium produced by Argentina Lithium.
The company’s flagship Rincon West Lithium Project includes over 5000 hectares of concessions next door to the west and north of the Rincon Project owned by Rio Tinto Plc (RIO.L). Rincon West is also across the salar from Argosy Minerals’ (ASX:AGY) Rincon Lithium Project, which hosts a JORC resource of 245,000 tons of lithium carbonate equivalent grading 325 mg/L and has moved from test plant production to finalizing 2,000 tpa plant operations1. Argentina Lithium’s discovery at Rincon West includes multiple long intervals of brines with promising lithium grades from its first drill program. The Company has an aggressive program underway to continue to test for brines across its large property and move towards completing its first mineral resource estimate.
The company’s second highly-prospective project, Antofalla North, covers more than 10,000 hectares of the Antofalla Salar, starting just 500 metres north of the lithium project controlled by Albemarle Inc., (NYSE: ALB) one of the world’s largest lithium producers1. The Antofalla North project is also located approximately 25 kilometers west of Argentina's largest lithium-producing operations at Salar de Hombre Muerto. The company anticipates an accelerated program at Antofalla North once permits are received.
Argentina Lithium’s other properties include 25,000 hectares in the Incahuasi Salar and more than 26,000 hectares in the Pocitos Salar.
Following the major financing deal with Stellantis, Argentina Lithium accelerated its exploration plans for 2024, which includes the completion of up to 30 drill holes in two phases at the Antofalla North project, with a goal of bringing it to a resource delineation stage shortly on the heels of the company’s flagship Rincon West project if results are positive. The company has also expanded its exploration plans for Pocitos and Incahuasi, beginning with a reconnaissance program of 170 line-kilometer of transient electromagnetic survey at Pocitos.
Argentina Lithium is led by Grosso Group’s management team which has a history of major mineral discoveries in Argentina, specifically the Chinchillas silver-lead-zinc deposit now owned and being mined by SSR Mining (TSX:
SSRM) and Blue Sky Uranium’s (TSXV:
BSK) Amarillo Grande uranium and vanadium project. Plus the team was involved with early work at the properties hosting the Gualcamayo gold mine, now owned by Mineros S.A. (TSX:
MSA), and Pan American Silver’s (TSX:
PAAS) very large Navidad silver-lead deposit.
Company Highlights
- Argentina Lithium discovered lithium in brine at its Rincon West project, reporting strong lithium values in multiple holes.
- In Q4 2023 the Company closed a strategic investment and partnership with global automaker Stellantis, including a US$90-million (in ARS$ equivalent) investment into Argentina Lithium’s subsidiary, and a seven-year, 15,000-tonne-per-annum lithium offtake agreement.
- Drilling at Rincon West continues, with pump testing also planned for 2024, to advance Rincon West towards a potential first mineral resource estimate
- The Company also intends to fast-track exploration in 2024 at Antofalla North - its second highly prospective project.
- The company is backed by Grosso Group Management Ltd., which has already been involved with multiple significant mineral discoveries in Argentina.
Key Projects
Rincon West
Rincon West is a prospective lithium project covering more than 5000 hectares of concessions located in Salta province, Argentina. The project is primarily located along western side of the Rincon Salar, which hosts two significant resource development projects: Rio Tinto’s Rincon Project, and Argosy Minerals’ 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.
The first drill program at Rincon West included 9 holes and was completed in 2023. The program returned multiple long intervals of brine with strong lithium grades on its Villanoveño II concession. These were highlighted by a 258-metre interval starting at just 83 metres depth with lithium grades ranging from 287 to 402 mg/l lithium (including 2 internal intervals not sampled of 42m & 33m). In late 2023, the company commenced its second drill program at Rincon West, on the adjacent Rinconcita II concession. This is expected to be followed by up to six holes on the project’s third concession, as well as pump testing to provide detailed information to support a mineral resource estimate for the project.
Antofalla North
Argentina Lithium’s Antofalla North project is the company’s second star project and is also considered to be highly prospective. It covers over 10,000 hectares spanning the border of the provinces of Salta and Catamarca, situated less than 20 kilometers from Argentina’s largest lithium-producing operations at Salar de Hombre Muerto. The project is accessed via a provincial highway and unpaved roads. Antofalla North is also located just north of Albemarle Corporation’s Salar de Antofalla project.
Argentina Lithium has conducted a geophysical survey at the project, which identified high-conductivity targets in the upper 100 meters and additional targets at depths of up to 500 metres. The company is planning an expanded 2024 exploration program, pending permitting, which includes detailed geophysics to delineate the basin and drill targets, the completion of six exploration drill holes and, if warranted, up to 24 infill holes.
Pocitos
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 connecting to Pacific ports, a provincial highway and a major gas pipeline.
The Pocitos project has had limited historical exploration, including geophysics, surface sampling and limited drilling. As part of its expanded 2024 exploration program, Argentina Lithium initiated a reconnaissance program of 170 line-kilometers of transient electromagnetic surveying on the properties to identify future drill targets. This program at Pocitos is an increase of approximately 40 percent from the previous plans.
Incahuasi
Argentina Lithium’s 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 reported a maximum lithium value of 409 mg/L lithium and 1.56 percent potassium in near-surface sampling to an 8-meter depth. The company 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. In 2024, the company plans to conduct a 90-kilometer-line transient electromagnetic sounding survey covering the entire property to detect and delineate brine aquifers for testing.
Management Team
Nikolaos Cacos - 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 (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.
Darren Urquhart - CFO
Darren Urquhart is a chartered professional accountant with twenty years of experience working in public practice and industry. Urquhart operates his public practice accounting firm offering chief financial officer and accounting services to TSX Venture Exchange-listed companies in Vancouver. He has also served as director for some of his corporate clients. Urquhart began his career working as an audit accountant with Grant Thornton LLP, then later worked as a senior tax accountant with Lohn Caulder Chartered Accountants. He obtained his chartered accountant designation in 2001 and is a member of the Chartered Professional Accountants of British Columbia. In 1995, Urquhart graduated from the University of British Columbia with a Bachelor of Applied Science in Electrical Engineering.
Joseph Grosso - Chairman of the Board and 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 SA 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.
Martin Burian - Director
Martin Burian holds ICD.D (Institute of Corporate Directors) and Chartered Professional Accountant designations. He has a 30-year career in investment banking in the mining sector, is currently Managing Director at RCI Capital Group and held similar senior positions at Haywood Securities, Bolder Investment Partners and Canaccord Capital. Burian is an independent member of several other public company boards where his roles include chairman, lead independent director and audit committee chair, as well as privately-held Heffel Gallery Limited where he is also part-time CFO. Burian’s early career was with KPMG where he obtained his CPA and CBV designations.
David Terry – Director
Dr. Terry is a professional economic geologist, senior executive and corporate director with more than 30 years' of international experience in the mineral resources sector. Dr. Terry holds a B.Sc. and Ph.D. in geology from Western University in Ontario and is a member of the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Terry has played key roles in the successful acquisition, exploration and development of a number of precious and base metal deposits, primarily in North and South America, and has expertise in advanced project evaluation, M&A, corporate finance, and design and execution of effective exploration programs. In the course of his career he has held executive positions and directorships with a number of publicly-listed and private mineral resource companies; he currently serves as a director of Blue Sky Uranium Corp., Golden Arrow Resources Corporation, and Aftermath Silver Ltd..
In Summary:
Argentina Lithium is a well-funded exploration company with a global automaker strategic partner, making discoveries in the Lithium Triangle. For exploration results offering leverage to the new battery supply chain, learn more about this company.
1[Argentina Lithium cautions that proximity to a discovery, mineral resource, or mining operation 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.]
Figure 1: Solonópole Project permits and targets drilled in May – June 2023 (red dots)