Pursuit Minerals (ASX:PUR)

Investment Memo:

Pursuit Minerals (ASX:PUR)

- LIVE

Opened: 01-Oct-2025

Shares Held at Open: 5,365,105

Options Held at Open: 610,355

What does PUR do?

Pursuit Minerals (ASX:PUR) has a gold exploration project and a lithium brine development stage project in Argentina.

What is the macro theme?

PUR has exposure to:

Gold & Silver - a precious metal which is often seen as an insurance against inflation, uncertain markets and as a reserve asset. Gold is trading at all time highs at the time of this memo, and Silver is at 14-year highs.
Lithium - lithium is a critical component for lithium-ion batteries, leveraged to electrification, energy storage and electric vehicle update.

Our Big Bet for PUR

“PUR discovers and defines a large resource, leading to a long term re-rate in the company’s share price by >1,000%”

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 no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our PUR Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

Why did we invest in PUR?

Argentina open for business and underrepresented on the ASX

What was once a jurisdiction of political risk is now one of sweeping pro-market reforms.

Despite its world-class copper, gold and lithium potential, Argentina is under-represented on the ASX.

Companies like PUR with in-country experience can take first mover advantage to develop mining projects in the region.

Backing PUR’s management to identify best projects in Argentina

PUR’s Chairman Tom Eadie is also the Chairman of Southern Cross Gold capped at $1.8BN and he was part of the team that made the Syrah graphite discovery in Mozambique.

PUR’s Managing Director Aaron Revelle has operated in Argentina since 2015 and is very familiar with the region.

PUR looking for gold, gold pushing all time highs

Gold is pushing to US$4,000/oz... no need to say more.

PUR’s project sits on ground to 8Moz Cerro Negro owned by US$92B capped Newmont

PUR’s project has the same mapped veins similar to Newmont's 8Moz Cerro Negro gold mine 100km to the north.

Previous drilling on PUR’s project only went down to 170m.

PUR’s theory is that if it drills down to 150-400m it could make a giant gold discovery that was previously missed.

PUR’s project is in a highlight prospective gold mining region of Argentina

PUR’s exploration ground is next to two active mines owned by Pan American and Newmont. The broader region hosts more than 50 known gold-silver deposits, including 8 operating mines and numerous advanced exploration projects.

If PUR makes a discovery and defines a resource it has the option to toll-treat ore at neighbouring plants for potential near-term revenue.

Drill ready targets, going for a big discovery

PUR has identified multiple high-grade veins mapped over 5 km of strike. Historic drilling includes 8.92 g/t Au over 1.55m and there has been no drilling below 170m (where two holes ended in mineralisation).

PUR is fully permitted for its next drilling campaign.

PUR’s Argentina lithium brine asset is in the back pocket IF lithium sentiment turns

PUR has a 1Mt LCE resource in Argentina’s Lithium Triangle and a 250tpa pilot plant has produced 99.5% technical grade lithium carbonate.

PUR has plans to scale to 17,500tpa and we think that the development-ready project offers leverage to the upside if lithium sentiment turns.

What do we expect PUR to deliver?

Objective #1: Drilling of highest priority targets

We want to see PUR drill its highest priority Sascha Main, Pellegrini and Estancia targets drilled beyond 150m depths into the ~150-300m depth range where PUR expects to make a discovery.

Milestones

not done Drilling commenced

not done Drilling visuals

not done Assay results

Objective #2: Target generation works

We want to see PUR map and define more drill targets across its project - this could be either through sampling (soil, rock chip and channel) or through geophysics.

Milestones

not done Geophysics

not done Program of work defined

not done Drilling commenced

not done Assay results

Objective #3: Resource drilling

This one is contingent on PUR making a discovery. IF that happens we want to see PUR drill out, extend and then put out a maiden resource on its discovery.

Milestones

not done Geochemical sampling (soils, trenching)

not done Geophysical surveys

not done Identify drill targets

Objective #4: Lithium project

We still think PUR’s lithium project could become valuable in a more bullish lithium market. We want to see PUR keep up desktop works where it can on the asset and hold the project until market sentiment turns in the lithium sector.

In particular, we want to see PUR drill its biggest tenement adjacent to the salar to see if there is a massive lithium brine underneath the alluvial cover.

What could go wrong?

Exploration risk

PUR is still a long way from a discovery, and even further from defining a resource.

Like all micro cap minerals explorers, the risk is that PUR finds no economic mineralisation on its assets - in which case we would expect to see the share price re-rate lower.

Delay risk

PUR plans to drill two parts of its project all before the end of the year.

There is a risk there is some slippage in these timelines and IF PUR were to have big enough delays it could lead to the market losing interest in the stock.

Significant delays could be negative for PUR’s share price as it would burn down the company’s cash balance and bring the company to a position where it needs to raise more capital and dilute existing shareholders.

Funding risk/dilution risk

As a pre revenue explorer, PUR is dependent on capital markets to fund ongoing drilling and development.

That could come at discounted prices and further dilute existing shareholders.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract.

Should gold or copper prices fall, this could hurt the PUR’s share price.

We have already seen this happen with the lithium price and what it meant for PUR’s Argentinian assets.

Market risk

Broader market sentiment could deteriorate, and shares as an investment class trade lower, taking PUR’s share price with it.

Alternatively, there could be further sector specific pain ahead where junior explorers suffer a lot more than the broader market.

What is our investment plan?

We are Invested in PUR to make a discovery and define a gold discovery.

Our plan is to hold the majority of our position in PUR into the upcoming drilling program.

We may look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates in line with our minimum hold conditions.

Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 5,365,105 PUR Shares and 610,356 PUR Options at the time of publishing this Investment Memo. The Company has been engaged by PUR to share our commentary on the progress of our Investment in PUR over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

Investment Memo:

Pursuit Minerals (ASX:PUR)

- LIVE

Opened: 14-Dec-2022

Shares Held at Open: 25,133,333

What does PUR do?

Pursuit Minerals (ASX: PUR) is developing an advanced lithium brine project in Argentina.

PUR’s project is located inside the South American ‘lithium triangle’, a region home to ~ 50% of the world's lithium production and lithium majors like SQM and Albemarle.

What is the macro theme?

Lithium is recognised as a critical raw material by the USA, European Union, India, Japan and Australia because of its importance in the lithium-ion battery supply chain.

These batteries are required to power electric vehicles (EVs) AND to store energy for managing the ongoing global energy crisis.

With lithium brines responsible for almost half of the world's lithium production, PUR offers us exposure to a strong macro theme with a differentiated project style.

Our Big Bet for PUR

“PUR discovers and defines a large resource, leading to a long term re-rate in the company’s share price by >1,000%”

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

Why did we invest in PUR?

Project sits inside an already giant resource

PUR’s project sits inside an already established foreign resource estimate of 2.1mt lithium carbonate equivalent. PUR’s ground covers ~9,260 hectares inside and on the perimeter of the larger Rio Grande salar (salt lake) in Argentina which measures ~27,500 hectares.

Exploration upside

Most of the drilling in the Rio Grande salar (salt lake) has been down to depths of ~100m. Lithium mineralisation is interpreted to extend down to depths of ~500m in depth leaving plenty of exploration upside for PUR to chase.

PUR kicks off 2nd drillhole at lithium project [10-Jul-2024]

Strong management team

Team includes the founding chairman of $1.7BN Syrah Resources - Tom Eadie, and Kyle Stevenson was also the founder of Millennial Lithium which was eventually sold for CAD$491M.

Located inside Argentina’s “lithium triangle”

PUR’s project sits in a region home to ~50% of global lithium supply, dubbed the “lithium triangle” of Argentina. The region also hosts majors like Allkem (capped at $8.3BN), Albemarle (capped at $45BN), SQM (capped at $39BN) and Rio Tinto ($172BN) hold lithium projects. This brings with it potential future consolidation opportunities.

Low market cap relative to advanced peers

Post acquisition PUR will have a fully diluted market cap of ~$31M, which is low compared to other lithium brine players Argosy Minerals ($828M).

What do we expect PUR to deliver?

Objective #1: Drilling program to establish maiden JORC resource estimate

We want to see PUR drill to depths of ~500m where mineralisation is interpreted to extend to.
The ultimate aim of the drilling program will be to establish a maiden JORC resource estimate for its project.

Our bull/base/bear case expectations for the maiden JORC resource is as follows:

Bull case = >100kt lithium carbonate equivalent.
Base case = 50-100kt lithium carbonate equivalent.
Bear case = <50kt lithium carbonate equivalent.

PUR kicks off more geophysics at its lithium project [27-Jul-2023]
Preparing to drill for lithium in the "lithium triangle" [23-Aug-2023]
Geophysics, drill timeline and targets for PUR [07-Sep-2023]
Rio Grande Sur Lithium Project Update [03-Oct-2023]
PUR delivers big lithium hit in Argentina [29-May-2024]

Milestones

complete Drilling program commencement

complete Drilling program results

complete Maiden JORC resource estimate

Objective #2: Pilot plant construction to show recovery potential

We want to see the company build and operate a pilot plant to show that it can produce lithium carbonate from its project efficiently.

PUR completes the acquisition of its lithium pilot plant [17-Aug-2023]
Rio Grande Sur Lithium Project Update [03-Oct-2023]

Milestones

complete Pilot plant construction commenced

PUR Commissions Pilot Plant - One Step Closer to Production [28-Mar-2024]

Pilot plant construction completed

PUR Commissions Pilot Plant - One Step Closer to Production [28-Mar-2024]

not done Pilot plant operating results

Objective #3: Complete either a definitive feasibility or bankable feasibility study (DFS/BFS)

We want to see the company advance the feasibility studies for its project from where it is now (scoping study) to either a Definitive Feasibility or Bankable Feasibility study level.

Milestones

not done Feasibility study commencement

not done Feasibility study completion

What could go wrong?

Commercialisation risk

Lithium brine projects are highly dependent on different variables like weather, flow rates to surface and the variability of grades in the brines. There is always a risk that PUR’s project doesn't meet the levels required for its project to be operated commercially.

Resource risk

PUR’s ground sits inside an area where another company has already defined a foreign resource of 2.1mt lithium carbonate equivalent. This does not mean PUR will be able to define a resource of its own, there is always a chance that the ground PUR holds is considered uneconomic and no resource estimate is produced.

Market risk

There is always a risk that market sentiment impacts PUR’s ability to raise capital. Given the company is yet to commence producing any cashflows the need to raise capital may weigh on the company’s share price.

Commodity price risk

Lithium is currently trading at all time-highs. There is always a risk that the market interest for lithium decreases and in turn appetite to invest in companies like PUR decreases.

What is our investment plan?

We have been holding a position in PUR for over 2 years now, and after a failed attempt at drilling in the Julimar province we are happy with this new advanced lithium acquisition (pending DD and shareholder approval expected in January 2023).

We participated in the $2M PUR cap raise (December 2022). We have also been following the private Argentinian lithium asset being acquired by PUR since October this year, and also have an interest in this company after participating in a pre-listing capital raise, which will convert to PUR shares post transaction.

It’s very early in PUR’s new project, but as always we may look to de-risk ~20% in the next 12 months in line with our trading policy, if the price materially re-rates on key milestones.

Read our trading policy here.

Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 25,133,333 PUR shares and 10,000,000 PUR Shares on Trilogy Class B Con Note conversion at the time of publishing. The Company has been engaged by PUR to share our commentary on the progress of our Investment in PUR over time.