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Diversified minerals company Power Minerals Limited (ASX: PNN) (Power or the Company) is pleased to announce that drilling has commenced at the Rincon salar, as the next phase of its ongoing Mineral Resource definition drilling campaign at the Salta Lithium Project in the lithium triangle of north-west Argentina (Figure 4).
- JORC Mineral Resource definition drilling underway at Rincon salar at Salta Lithium Project in Argentina
- Drilling planned to comprise 3 diamond core holes for a total of ~500m and is designed to increase the existing JORC Mineral Resource at Rincon
- Results will feed into a Preliminary Economic Assessment( PEA) currently being undertaken at Rincon
- Drilling is complete at the Incahuasi salar and a maiden JORC Mineral Resource is currently being compiled
- Drill rig to move to Pocitos salar, the drilling final target, on completion of drilling at Rincon
- Power’s Mineral Resource drilling campaign is designed to deliver a substantial upgrade of the Salta Project’s existing JORC Mineral Resource for lithium and to support future development plans
Power’s Mineral Resource definition drilling is designed to deliver a significant upgrade to the Salta Project’s existing JORC 2012 Mineral Resource (ASX announcements, 23 January 2019 and 27 June 2018).
Drilling has been completed at the first target, the Incahuasi salar, and a maiden JORC Mineral Resource Estimate will soon be confirmed at Incahuasi (ASX announcement 6 April 2023).
The drilling at the Rincon salar is planned to consist of three diamond cored drillholes for a total of approximately 500 metres (Figure 1, and Figures 2 and 3). It is designed to confirm results from previous drilling in 2017 and to test for deeper additional potential lithium resources in the northern part of the licence area, to significantly increase the existing Rincon Mineral Resource (ASX announcement, 27 June 2018).
The drilling at Rincon and planned Mineral Resource upgrade will form a key input to the Preliminary Economic Assessment (PEA) currently underway at Rincon (ASX announcement, 8 December 2022). The PEA is expected to be completed in the current quarter.
Figure 1: Location plan for lithium brine resource drilling and conceptual Rincon DLE development.
“We are excited to commence drilling at our next target, the Rincon salar, as part of the Company’s extensive ongoing Mineral Resource definition drilling campaign at the Salta Project. Rincon is our most advanced salar and hosts the Project’s highest-grade lithium, and an existing JORC Mineral Resource. Drilling at Rincon is designed to expand this Resource and results will feed into the PEA currently being undertaken at Rincon. Drilling is now complete at the Incahuasi salar and a maiden JORC Resource Estimate is currently being compiled for this salar, which will form part of our planned global JORC Resource upgrade at the Salta Project.”
Power Minerals MD, Mena Habib
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This article includes content from Power Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
PNN:AU
Strategy Update and Cost Restructure
HIGHLIGHTS
- Strategic focus on scaling Envirostream, the Battery Recycling division, due to the potential of increased recycling volumes and cashflows over the years ahead
- Battery Recycling: Continued safe operations, growing volumes and operating profits, and seek partners to scale operations in line with the expected waste outlook
- Livium is well advanced on the near-term commercialisation pathways of its other technologies:
- Battery Materials: Defined pathway for development of an Australian LFP demonstration plant with funding to be secured directly into VSPC from strategic partners
- Lithium Chemicals: Complete JDA activities with MinRes, including assessment of alternate commercialisation pathways and selection of the preferred lithium product
- Restructuring of the organisation and cost reductions being undertaken with estimated annual ongoing savings of A$1.5m
Comment regarding the strategic update from Livium CEO and Managing Director, Simon Linge
"We have advanced our strategy to inflection points, with the next phases of growth for each division requiring strategic partners to underpin their growth and development. With a focus on strategic growth partners, we have reviewed our resourcing and made the decision to restructure our organisation and reduce costs.
Livium remains committed to delivering returns for shareholders. Whilst organisational changes may impact our ability to react to opportunities, right sizing the organisation assists in resetting the Company's cost base to become sustainable over this critical period."
NEAR TERM PLANS
The following activities have been identified as key to delivering value in the near term:
- Battery Recycling: Continued safe operations, growing end-of-life volumes, and seeking partners to scale operations in line with the expected waste outlook and to expand into related services
- Battery Materials: Secure funding for an Australian LFP demonstration plant from government and private strategic partners, who will invest directly into VSPC
- Lithium Chemicals: Complete JDA activities with MinRes, including assessment of alternate commercialisation pathways and selection of the preferred lithium product
- Corporate: Complete implementation of organisation restructure and other cost saving initiatives.
BATTERY RECYCLING GROWTH OUTLOOK
The Battery Recycling division generates revenue today, is the largest recycler of lithium-ion batteries in the country, draws on our technical expertise to provide value-added services and has strong commercial relationships. Strategic focus is being placed on Battery Recycling, through Envirostream, due to the potential of increased recycling volumes over the coming years.
During CY2024, Envirostream successfully increased volumes of EV' andESS2 with most of the volume being received under exclusive customer arrangements. Over CY2024, Envirostream collected 736k tonnes of large format batteries and it is estimated that there are five times these volumes available today which are increasingly expected to be recycled due to consumer demand and government regulation. In their Battery Market Analysis, B-cycle show how EV and ESS batteries are expected to dominate3.
Figure 1. EOL Battery Projections by Market Segment3
Focusing on only EV / ESS for the balance of the decade demonstrates the near-term opportunity for Envirostream collections growth relative to current performance.
Figure 2. 5-Year EV and ESS EOL Battery Projections3
The near-term outlook for Envirostream is positive, enabling increases of volumes collected and processed, and providing an opportunity to expand our service offerings in line with market requirements.
To accommodate expectations of market growth, the business intends to explore deploying growth capital to improve operating efficiencies and expand capacity. The company has appointed advisors to coordinate discussions around partnership and growth funding options, which includes both strategic partners and other financiers.
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This article includes content from Livium Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.