Argentina Lithium & Energy Corp. [TSXV: LIT; FSE: OAY3; OTCQX: LILIF], reported results of the first Mineral Resource estimate (MRE) for the Rincon West lithium brine project in Salta Province, Argentina.
MRE Highlights: Measured and Indicated Resources of 0.15 km3 brine volume with an average grade of 296 mg/lithium, representing 238,000 tonnes Lithium Carbonate Equivalent (LCE), and Inferred Resource of 0.08 km3 brine volume with an average grade of 216 mg/l lithium, representing 64,000 tonnes LCE.
Nikolaos Cacos, CEO commented, “This initial resource marks a pivotal step in unlocking the full potential of Rincon West and reinforces Argentina Lithium’s position at the center of one of the most strategic lithium districts in the world. With Rio Tinto’s world-class Rincon Project as our direct neighbour and a strong offtake partnership with Stellantis, we are uniquely positioned to advance Rincon West rapidly and responsibly. This foundation allows us to leverage both, strategic infrastructure and commercial synergies, as we move toward the next phase of development.
“As we advance PEA studies and evaluate advanced extraction technologies, our long-term focus remains crystal clear: to build a scalable, high-value lithium operation that generates sustainable returns for our shareholders. This initial resource provides a solid foundation on which we intend to expand the resource base: the exploration team will be carefully evaluating drilling below the current mineral resource, where expansion potential has been identified as the current mineral resource is open to depth. Together with our other highly prospective properties at Pocitos, Antofalla and Incahuasi, our company’s assets create a strong growth pipeline that will allow us to deepen strategic partnerships and accelerate development, potentially positioning Argentina Lithium as a key future supplier to the global EV and battery markets.”
The Mineral Resource estimate was completed at the West Block properties (mining concessions Villanoveño II and Rinconcita II) totalling 2,931 hectares. The resource estimate does not consider the Paso de Sico concessions in the northern part of the Rincon West project, which in aggregate represents 3742.9 hectares of mining concessions at the Rincon Salar. The resource was defined by 14 exploration boreholes totalling 4823.2 metres of diamond drilling, and one production well of 470 metres of total length.
Between 2022 and the end of 2024, Argentina Lithium conducted two drilling campaigns at the Rincon West Project during which 14 diamond drill exploration holes (HQ diameter) were completed. Drilling was carried out by Salta-based AGV Falcon Drilling SRL, under the supervision of Argentina Lithium’s geologists.
On completion of drilling, the boreholes were prepared as monitoring wells with the installation of 2-inch diameter blank or slotted PVC casings. At the conclusion of the second drilling campaign, one production well (RW-RT-1) was drilled using a mud-rotary system and completed with 10-inch diameter stainless steel production casing. A variable rate pumping test and a 30-day constant rate pumping test were carried on this production well.
The resource model domain is constrained by the following factors – Upper Boundary: The upper boundary of the model is determined by the highest elevation samples within the dataset, and/or the phreatic brine level.
Lateral Extent: The lateral extent of the resource model is confined within the boundaries of the LIT mining claims.
Lower Boundary: The lower boundary of the model domain extends to 385 metres below the topography, which is 5 metres below the deepest sample. At this depth, geological evidence supports the continuation of brine with similar characteristics.
In September 2023, the company entered into a definitive agreement with Stellantis, a leading global automaker, for a strategic investment through Stellantis’ subsidiary Peugeot Citroen Argentina S.A., in return for a 19.9% stake in Company’s Argentine subsidiary Argentina Litio y Energia S.A. (ALE), with Argentina Lithium retaining 80.1%. The agreement includes an Exchange Right allowing Stellantis to convert its ALE shares into up to 19.9% of Argentina Lithium’s common shares (undiluted), subject to certain conditions and a Top-Up Right to maintain that ownership threshold. Additionally, the parties executed a seven-year lithium offtake agreement, under which Stellantis will have the right to purchase up to 15,000 tonnes of lithium carbonate per year, if and once commercial production begins, with options for extension and rights of first refusal on surplus product.
Argentina Lithium & Energy is focused on acquiring high quality lithium projects in Argentina and advancing them towards production in order to meet the growing global demand from the battery sector.
The strategic investment in the company by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V. has helped Argentina Lithium to advance its four key projects covering over 67,000 hectares in the Lithium Triangle of Argentina. Management has a long history of success in the resource sector of Argentina and has assembled some of the Lithium Triangle. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
