FULL DISCLOSURE: This is sponsored content for Lithium Chile.
Lithium Chile (TSXV: LITH) has expanded its holdings within the Salar de Arizaro of Argentina following a successful bidding process.
The company has acquired a 8,445 hectare concession, referred to as Block IV, following a bidding round that saw its Argentinian subsidiary, Argentum Lithium, compete against twelve other bidders.
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The tender process as a whole included five different concession blocks, the largest of which was Block IV. The claims are found 18 kilometres to the north of Lithium Chile’s ARDDH-02 well within the Arizaro Basin.
Exploration conducted on the cell block last year by Portofino Resources included over 40 surface brine samples, 35 trenches, and 69,000 metres of geophysical surveys. The survey conducted indicated that a subterranean aquifer exists that contains depths of up to 1,000 metres, while low resistivity horizons within the surveys have been identified as brine bearing targets.
This exploratory work has resulted in a partnership agreement being entered into with Portofino on the block, paving the way for a joint venture. The JV would see Portofino able to acquire up to 50% of a net equity interest in the block, by providing half of the award expenses and exploration costs. A definitive agreement is expected within the next 60 days.
Exploration meanwhile is slated to begin as soon as possible, with an environmental impact study to be filed immediately to enable a 2024 exploration program.
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READ: Lithium Chile To Deliver Pre-Feasibility Study For Arizaro Project In April 2024
“Being awarded Block IV is a wonderful achievement for us! It has the potential to significantly increase our lithium resource without the added expense. We have the equipment, capable team and infrastructure already in place, which positions us to swiftly advance the project. Adding an additional 8,400 hectares to our already substantial land position makes Lithium Chile a dominant player in the basin,” commented CEO Steve Cochrane on the development.
Lithium Chile has made a US$5.7 million initial payment to the Salta Provincial Mining and Energy Corporation for the block being awarded.
WATCH: Lithium Chile: US$1.8 Billion Pre-Tax NPV(8%) At Arizaro – With Michelle DeCecco
Separately, the company indicated that on December 4 it submitted the environmental impact assessment for the Arizaro project to the Ministry of Mining and Energy of the Province of Salta. The study is for the production stage of the project.
Lithium Chile last traded at $0.50 on the TSX Venture.
FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
