Argentina Lithium & Energy looking to tap into a 'cleaner, greener' future with its assets in the 'Lithium Triangle'

• Part of the Grosso Group which has been involved with four major mineral discoveries in Argentina
• Argentine government is encouraging foreign investment and renewable energy initiatives
• Demand set to increase for lithium-ion batteries

What Argentina Lithium & Energy does:

Argentina Lithium & Energy Corp (CVE:LIT) (OTCMKTS:PNXLF) (FRA:OAY2) is a junior explorer hoping to tap into what it believes will be significant demand for a cleaner, greener future.

It is a member of the well-known Grosso Group, which has been a pioneer in the mineral exploration sector in Argentina since the early 1990s.

The group believes now is the time to expand efforts in the Argentinean portion of the so-called ‘Lithium Triangle’, which already accounts for around half of the world’s lithium output. In 2020, Argentina was a top-five global producer of lithium. New US president Joe Biden’s electric vehicle (EV) plan will create bull market conditions for energy metals, the company has said.

Argentina Lithium & Energy is currently evaluating the next steps for its Salar de Incahuasi project in Catamarca province, subject to financing. The asset spans 13,300 hectares (Ha) and the company owns 100%.  The asset is prospective for lithium brines and is around 2.5 kilometres (km) wide and 17 km long, north to south. Access is via gravel road and the project sits 34 km from the nearest town.

Geophysical surveying has shown potential for lithium-rich brines starting at surface and reaching up to 200 metres (m) depth.

The company also holds the Salar de Antofalla, which is around 150 km long and up to 7 km wide, and where the geology is similar to other salars in the Puna region where lithium and potash are found. Reported grades from the salar include 350 milligrams per litre (mg/l) lithium and 6,400 mg/l potash.

The salar is accessed by Provincial highway 43 and unpaved roads, with the small town of Antofalla approximately 50 km to the south and the city of Salta approximately 500 km away.

How is it doing:

Back in early 2018, Argentina Lithium & Energy said it received permits necessary for drilling at Incahuasi and subsequently started a four-hole drill program on the southern part of the salar.

Each hole encountered lithium-bearing brines and concentrations were modest but fairly consistent, averaging 109 mg/l in all 54 samples collected and analyzed.

No work was completed last year and the company relinquished several mineral rights properties covering a portion of the southern half of the salar.

In its most recent announcement in June, 2021 the firm revealed that it had bolstered its board with the appointment of Dr John Gammon as a director of the company.

The company noted that Gammon has 40 years’ experience, including as assistant deputy minister mines and minerals with the Government of Ontario and, since retiring, as a consultant to industry, governments and universities. His knowledge of the Spanish language and South American culture will aid the company’s advancement of its Argentinian projects, it added.

Darren Urquhart is resigning from the board of directors but will continue to serve as chief financial officer (CFO), the company also told investors.

And in April this year, Argentina Lithium & Energy said it had closed a non-brokered private placing, issuing over 8.4 million units at C$0.09 each for total gross proceeds of C$763,605. The company said the proceeds would be used for general working capital.

Inflection points:

• Start of exploration at Salar de Incahuasi project
• News of the Salar de Antofalla
• Financing news

What the boss says:

“We are extremely pleased to welcome Dr Gammon to Argentina Lithium’s board of directors. His extensive experience in geological and ESG matters makes Dr Gammon a tremendous asset to our company,” said Nikolaos Cacos, CEO of Argentina Lithium & Energy Corp, in the company’s latest statement.

Contact the author at [email protected]

Story by ProactiveInvestors