C29 Metals Limited (ASX: C29) has signed an option agreement to acquire 80% of two exploration licences located within the world-renowned South American Lithium Triangle. Projects are drill-ready, with previous exploration indicating highly prospective layers of lithium-bearing brine potential.
Today we’re looking at C29 Metals. The company announced this morning that it has secured an option agreement with AIS Resources to acquire 80 per cent of two highly prospective lithium-bearing salars within the world renowned “Lithium Triangle” of South America, for a total of US$2.38 million.
The two exploration licences, Pocitos 7 and Pocitos 9, are located within Argentina’s Salta Province, and both are drill-ready, with previous exploration indicating highly prospective layers of lithium-bearing brine potential.
C29 plans to drill-test these geophysical targets in the short term before commencing a program of lithium extraction process testing.
The company has begun due diligence processes, including collating and reviewing historical exploration data, while a drill rig and a local team have been secured for drilling the maiden reconnaissance exploration wells.
The option agreement with AIS Resources, a Canadian company listed on the Toronto Stock Exchange, involves a total option fee of US$430,000 for a 9-month exploration licence.
AIS Resources has undertaken a similar agreement with their Pocitos 1 and Pocitos 2 projects, which have been optioned to Recharge Resources and Spey Resources, respectively. AIS has outlined they will retain a 7.5 per cent royalty on lithium carbonate sales for both projects.
C29’s Pocitos 7 and 8 projects are located in the presence of existing infrastructure with road, rail, and power all passing through the area. This includes the Salta-Antofagasta railway, which runs within 20km of the project and has a station at the nearby town of Pocitos. This provides a direct link for the project to the major Chilean port city of Antofagasta on the Pacific coast, allowing an easy route to market for the refined lithium carbonate that the project can produce.
The projects are situated at over 3,600m above ground level, and the concessions are surrounded by land held by other lithium brine explorers, including major players such as the dual-listed Argentina Lithium & Energy (TSX-V:LIT), Power Minerals (ASX:PNN), Spey Resources (CSE:SPEY) and Recharge Resources (CSE:RR), who all hold an interest in land at the Salar de Pocitos.
In response to the news, C29’s Executive Director Mark Major commented, “We now have an opportunity to establish ourselves in this demand driven market within the world-renowned lithium triangle of South America, a place with suitably established infrastructure in place. Most of the initial groundwork has been done, with the TEM geophysical surveys highlighting areas of prospectivity.” We caught up with Mark earlier today.
C29 has also signed a non-exclusive IP Licence agreement with Ekosolve, which has a direct lithium extraction (DLE) process that has demonstrated positive battery grade extraction and lithium recovery results from similar brines.
DLE will be a fundamental part of the success of the project. High-quality brine extraction technology currently serves as a key feature of many brine projects.
We have previously seen success of lithium miners partnering with high quality technological partners in the DLE space.
Miner Lake Resources (ASX:LKE) partnered with Lilac Solutions to adopt a DLE method that takes just three hours to extract lithium via brines. This compares with some methods of direct lithium extraction from brines that take between nine months and two years. This technological benefit currently serves as a competitive advantage for Lake Resources.
Although C29 has signed with Ekosolve, the company is also in talks with DLE technological companies Lilac Solutions and Sunresin New Materials group.
Lithium is currently the key ingredient in the lithium ion battery — the current gold standard for EV batteries. This move now puts the company in a great position to capitalise on the inevitable shift toward clean, renewable energy. The company can provide car manufactures with this highly valued commodity, capitalising on the projected growth in electric vehicle markets worldwide.
Shares in C29 Metals are currently trading 93.3 per cent higher at $0.29.
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