LIT:CC - The Stellantis Era Begins: Argentina Lithium (LIT.V) to drill up to 30 holes at Antofalla North Project
(TheNewswire)
November 27, 2023 - TheNewswire -Global Stocks News - On November 20, 2023Argentina Lithium (TSXV:LIT)(FSE:OAY3) (OTC:PNXLF) announced accelerated exploration plans for2024 , following a $90 million (in ARS equivalent)financing agreement with Peugeot Citroen Argentina S.A., asubsidiary of Stellantis N.V.
LIT is exploring a number of highly prospective lithiumprojects in Argentina with a goal of advancing them toward productionin order to meet the growing global demand from the batterysector.
“The revised program includes a plan to complete up to 30 drill holes at the Company’s large and highly prospective Antofalla North project , with a goal of assessing its lithium resource potentialshortly on the heels of the Company’s flagship Rincon West project,where the 11th of 20 planned exploration drill holes is underway,”stated LIT in the November 20, 2023 PR.
The Stellantis deal gives Argentina Lithium the financial resources toaccelerate the development of its lithium assets, while providingStellantis with up to 15,000 tonnes of lithium per annum, for a 7-yearperiod if LIT becomes a lithium producer.
Stellantis has a track record of making savvy upstream investments.
On August 17, 2023 Stellantis announced a $100 million investment inCTR to advance the development of a geothermal lithiumproject in California.
Argentina Lithium’s VP of Exploration, Miles Rideout , haslived in Mendoza, Argentina for more than 20 years. Fluent in Englishand Spanish, he has a track record in mine permitting, financing,construction, and operations, participating in the discovery ofmultiple world-class deposits.
“ Our 2023 field work focused on drillingRincon West and was extremely successful in identifying lithium-richbrines and advancing the project,” stated Rideout. “At the sametime, we assembled the large Antofalla North propertypackage adjacent and to the north of AlbemarleCorp’s lithium project and now that we are funded [by the Stellantisdeal] we will be as aggressive aspossible to advance the project alongside RinconWest.”
Antofalla North is undrilled, though it has been explored withgeophysical techniques to 500 meters depth. LIT “hopes to delineateanother major source of lithium in brines atAntofalla.”
Argentina Lithium plans to complete 110 line-km of TEM geophysics at the Antofalla North Project covering approximately 16,620 hectares . The objective is to identify targets for drilling of “aninitial 6 broadly spaced reconnaissance holes” totalingapproximately 2,400 metres to test for lithium brines.
With positive results, LIT plans to follow this work with as manyas 24 infill holes or approximately 7,200 m ofdrilling to fully test the property holdings.
Miles Rideout recently spoke with Red Cloud TV’s MarkBunting about the Argentina program, including the Antofalla North project.
“Ricon West is the area we've been drilling for about18 months,” Rideout told Bunting. “Next year, we'll completeanother 12 exploration holes, and likely between four and six pumptests as well assessing the quality of the aquifer. With that workdone, we'll move forward with completing an initial mineral resourceestimate.”
“Our second lead project is Antofalla North,”continued Rideout. “Our properties there are adjacent to AlbemarleCorporation - the world's second largest lithium producer. We will bedrilling beside the Albemarle properties, in the same basin. It's alarge project.”
On November 20, 2023, Argentina voted to elect a newPresident, Javier Milei.
“The wider energy complex appears to be turning inMilei's favor,” reportedForbes . “Argentina has the world'ssecond-largest lithium reserves estimated to be in the region of 20million tons, according to the U.S. GeologicalSurvey .”
“Domestic production of the metal that's desperatelyneeded for the world's energy transition is ramping up, and might riseto as high as 120,000 t/year in 2024 (from a current level of around60,000 t/year)”.
LIT is part of the Grosso Group, which has a vastnetwork of local and regional contacts in Argentina. The GrossoGroup has formed strategic alliances and negotiated with mining majorssuch as Barrick, Teck, Newmont, Viceroy and Vale.
Argentina Lithium is currently awaiting the issuance ofenvironmental permits at Antofalla which will allow work to begin. LIT “does not foresee any issues with its applications.”
“We have cleared the biggesthurdle for any junior today , whichis having financing secured forall the planned exploration activity , to thetune of up to fifteen million dollars (US) next yearalone if we complete all of our plans,” stated Nikolaos Cacos, CEO of Argentina Lithium.
“In fact, the Stellantis funding is expected to carry us through explorationdrilling to potential resource definition and initial engineeringstudy stages at Rincon West and AntofallaNorth ,” continued Cacos, “allowing us tobuild value with minimal dilution for our investors.”
Contact: guy.bennett@globalstocksnews.com
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