PUR delivers big lithium hit in Argentina

We were hoping for a result like this.

Today, our Argentina lithium Investment, Pursuit Minerals (ASX: PUR) delivered a very strong lithium result from its drilling program - with its first hole.

There are some seriously high lithium concentrations in this hole:

(Source)

For context, one of PUR’s peers, TSX listed NOA Lithium intercepted lithium grades of ~433mg/li at depths of ~101m then after drilling to depths of ~300-400m started hitting grades of ~773mg/li to ~925mg/li.

Comparatively - this result from PUR is very promising and we’re looking forward to what could lie below ground at depth…

Assays are currently pending on deeper sections (130m to 500m) of the first drill hole - we should know more in the coming weeks.

With drilling continuing at depth we hope PUR can prove out its thesis that there are further excellent lithium concentrations at depth on its project.

And in doing so, we hope PUR can lay the foundations for a sustained re-rate in an improving lithium price environment.

We think PUR could be timing its run well.

With operational success in the form of excellent drilling results combined with a fully operational pilot plant which is on site and fully commissioned, PUR will be looking towards supplying potential offtake partners with samples for product qualification.

The Argentinian government has made supporting its burgeoning lithium a major priority as it seeks to grow its market share in the Latin American lithium market:

What’s next for PUR?

Phase 1 drill program 🔄 (ongoing)

The goal for the current drilling is to see if the brine reservoirs extend at depth AND to see if the lithium grades are higher as PUR drills deeper.

Pilot plant commissioning 🔄

PUR recently released an update on its pilot plant.

We will be waiting to see PUR switch the plant on and produce the first 2-10 tonnes of battery/technical grade LCE.

As an ultimate upside scenario for our PUR Investment - we’ve laid out our PUR Big Bet:

“PUR increases the size and scale of its lithium project to a level that warrants putting it into production. We are hoping this re-rates the company to a market cap of >$1bn (similar to what peer company Argosy achieved)”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our PUR Investment memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.