Argentina Lithium & Energy Corp. (TSXV: LIT | FSE: OAY3 | OTCQX: LILIF) has announced the receipt of an exploration permit for the Paso de Sico mining concession, part of the Rincon West Project in Salta Province, Argentina, adjacent to Rio Tinto’s Rincon Project. The provincial Secretariat of Mines and Energy issued the two-year permit, allowing for exploration activities including diamond and rotary drilling. The company plans to mobilize a diamond drill soon to start a six-hole exploration program to assess the potential for lithium brines on the property.
Nikolaos Cacos, President and CEO, commented, “The drilling permit is a significant milestone that enables us to advance the evaluation of the Rincon West project. Recent drilling on our West Block properties has revealed extensive formations rich in lithium brines. We aim to conduct a similar program on this undrilled northern block. Additionally, Paso de Sico is a prime candidate for a future processing plant and extraction facilities due to its advantageous location. The property is near major highways and a new 345kW power corridor.”
The planned programme at Paso de Sico is part of a broader plan to drill approximately 8000m across the Rincon West project over the next 18 months, focusing on brine and water resources. This work is funded by a prepaid drilling contract established in 2023, covering up to 15,500m of drilling.
The Paso de Sico property consists of four contiguous mining concessions totalling 791.3ha at the northern edge of the Salar de Rincon. It is located 50km northwest of Olacapato, where the company has an operational base.
In a news release dated 6 October 2022, the company announced the acquisition of the Paso de Sico option, an agreement with a local vendor to earn a 100% interest in the properties. The terms include cash payments totaling US$1.5M over two years and US$2.3M in exploration and development expenditures over three years from the permit grant date. One payment of US$400,000 remains. The option agreement includes a 3% NSR to the vendor, which the Company can purchase for an additional US$1.5M.
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