(Image via Lithium Chile Inc.)
Engaged in the acquisition and development of mineral properties in Chile,
Lithium Chile Inc. (TSX-V: LITH, OTC: LTMCF, Forum) is growing its reach to include a high-grade project in Argentina.
In a
May 2021 news release, LITH announced that it had added an Argentinian lithium salar property to its portfolio through a binding Letter of Intent with
SMG SRL of Jujuy, Argentina. The Company can earn up to an 80% interest in the 233 sq. km. Salar De Arizaro located in Salta Province. Nearby major companies in the area include
Eramine (Eramet SA) and
LITICA (formerly
LSC Lithium).
The LOI gives Lithium Chile the opportunity to earn a large and dominant land position in the centre of the largest undeveloped salar in Argentina.
A three-hole exploration program in 2019 identified a high-grade lithium zone in the aquifer. The size and potential of the Salar De Arizaro is well known.
- 850 mg/l lithium grades already established from a three-hole drill program conducted in 2019
- Surface area of Arizaro prospect larger than the Salar de Pastos Grande (Millennial Lithium) and the Salar de Pozuelos (Litica Project)
- Lithium Chile will be one of the only junior companies with active programs in two of the “Lithium Triangle” countries
Looking at these assay results and the Company is hailing this as a transformational acquisition. Lithium Chile’s President and Chief Executive Officer, Steve Cochrane stated that by entering into this agreement, it affords LITH the opportunity to potentially transition from a pure exploration Company to that of a producing Company.
“We believe that this opportunity has the realistic potential to be commercially viable for production and enhances our Chilean opportunities by advancing our plans by a number of years. This opportunity exposes our shareholders to an expanding, geographically diverse portfolio in two of the prominent countries that form the prolific ‘Lithium Triangle’. Our exploration activity will be focused in Chile while our transition to a potential lithium producer will focus on our Argentinian asset.”
53% of global lithium reserves are found within Chile, which accounts for 20% of global production, however lithium can only be mined under a special contract or in partnership with a state-owned company.
After Chile and Australia, Argentina is the world’s third largest lithium producing country.
As Chile’s lower house debates a bill for a new lithium and copper sales royalty that is based on production levels, Argentina is expected to reach over $10.7 billion (USD) in annual exports within the next decade.
Benchmark Minerals Intelligence reported last week that due to low availability, technical grade lithium carbonate had risen 4.5% to $12,700/t (USD) during the month of April 2021, while battery-grade lithium increased 6% to $13,625/t (USD).
This is clearly an acquisition of immense importance to Lithium Chile’s future and makes for a prime addition to its lithium property portfolio, which consists of 71,900 hectares covering sections of 12 salars and one laguna complex in Chile and now, 23,300 hectares in Argentina. There also five properties under Lithium Chile’s purview that are prospective for gold, silver, and copper.
(Lithium Chile Inc. stock chart – May 2020 to May 2021. Click to enlarge.)
Investors who have not already checked out Lithium Chile’s opportunity would be wise to do so now that it has made a move into Argentina.
For the latest updates on this Company, visit
lithiumchile.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.