Rio Grande Sur Lithium Project Update
Our Argentinian Lithium investment Pursuit Minerals (ASX: PUR) just put out an update on its Rio Grande Sur lithium project.
PUR’s project sits in South America's 'lithium triangle', a region that’s home to ~50% of the world's lithium production and multi-billion dollar lithium majors like SQM and Albemarle.
Here are our key takeaways from today’s announcement:
- Update on commissioning the pilot plant:
Back in August this year, PUR purchased a lithium carbonate pilot plant with a replacement cost of US$3.6M for just US$365k.
The plant was previously operational and has the capacity to produce ~100 tonnes per annum of lithium carbonates.
Right now the focus for PUR is on commissioning the plant - once completed the plant will be ready to start producing battery grade lithium carbonates.
(Source)
PUR also put out some production modelling done by engineering services contractor Worley which showed PUR could have lithium ready for processing after ~363 days.
PUR’s intention is to eventually bring the pilot plant onto the ground around its project where it can be expanded into a much larger operation than the current 100 tonnes per annum capacity it has.
Ultimately the production target for PUR is ~2,000 tonnes per annum within 24 months and 20,000 tonnes per annum within 36-48 months.
(Source)
PUR is now looking to get all of the permitting sorted so that the evaporation ponds can be constructed in H2-2024.
We believe this is all very promising, and PUR is closer to production than the market appreciates - currently.
2.Update on its drill program:
In today’s announcement PUR also confirmed that permits were pending for its first drill program.
See our deep dive into PUR’s upcoming drill program here: Geophysics, drill timeline and targets for PUR
What’s next for PUR?
Exploration Program 🔄
PUR is planning to drill 4 diamond drillholes as part of its phase 1 exploration program. Drilling is to commence before the end of this year (Q4 2023).
Permits for this program are currently pending.
JORC Resource 🔲
After the stage 1 drill program is complete, PUR will run a pumping test to see if the brine can be extracted to the surface using evaporation ponds.
After that, it will be all about putting together the company’s maiden JORC resource estimate.
Pilot Plant Operating Results 🔲
In today’s update, PUR outlined that it aims to use the Pilot Plant for processing materials in H1 2024 - after all the circuit adjustments are made.
