Tell us about Argentina Lithium and Energy’s journey to date.
Our company has been focused on the acquisition of mid-grade lithium brine properties in northwest Argentina. This allows us to combine the best mining jurisdiction for lithium brines, large size properties, and strongly competitive lithium grades. For the last two years, we have focused our drilling at the Rincon West project, where we are demonstrating that we have brine grades similar to Rio Tinto’s lithium project, which is to our immediate east.
This was our objective from the outset. Our next-in-line project at Antofalla North is in a similar setting, adjacent to major producer Albemarle. We are completing the geophysical exploration at Antofalla North as we complete the processing of permitting for drilling.
At Rincon West, the company’s twelfth drilled hole recently demonstrated continuous aquifer of concentrated lithium brines over an extensive basin. Can you tell us about these ongoing drill results and the picture they’re painting for the project?
The Rincon West project encompasses three property blocks that are all located adjacent to Rio Tinto’s project. Our drilling has focused on the west block, where we intend to focus our initial development planning. The next two blocks are still in permitting and will be drilled in the near future. The current drilling has proved the brine grades we had hoped for. We can now extract brines in larger volumes, so we can start moving forward with testing of extraction technologies.
Is the project still on track to release an initial MRE?
We are on track to have the initial resource estimate for Rincon West by Q4 of 2024. Drilling of the next two areas is dependent on permitting, but as we complete each area, we expect that we will update our resource.
Is there an update for the company’s other lithium project, Antofalla North?
We are conducting the TEM geophysics at Antofalla North currently. This allows us to image the brine filled aquifer within the ground and interpret geological setting, prior to drilling. We expect to receive the drill permit for Antofalla North later this year.
What’s Argentina’s lithium market outlook in the face of current volatility?
The lithium market has been volatile over the last 15 years at least, with periods of intense activity followed by adjustment, followed by further periods of activity driven by surging lithium prices. If you look at the trend, the demand for lithium continues to grow strongly and the price trend is to increase. Although the EV market lacks the infrastructure to grow as quickly as the markets would like, legislation in the western world points to EV and hybrid vehicles becoming the primary consumer products in the next decade. Shifting to a focus on hybrid vehicles provides a workaround solution to limited charging infrastructure.
Prudent explorers in Argentina are defining lithium resources and extraction processes. Automotive manufacturers are looking to secure their lithium supply chains by acquiring production agreements with explorers and miners. This is an exciting and growing industry. The periods of adjustment provide opportunities to access this investment market without paying top-dollar.
Do you see lithium keeping a top spot within the future battery chemistry mix?
Lithium battery technologies are advanced and continue to improve. Considering currently available technologies, lithium batteries provide the highest energy density, which is a primary concern for electrical mobility. Until another technology can demonstrate energy density, charge rate, and battery durability comparable to lithium, lithium batteries will remain the predominant technology. It appears that the legislated transport requirements of the next decade must be met by lithium batteries.
