C29 Metals (ASX:C29) secures option to acquire lithium brine projects in Lithium Triangle

Highlights:

• C29 Metals (ASX:C29) has secured an option agreement to acquire an 80% interest in the two highly prospective lithium-bearing exploration licences in Argentina
• The projects are located in the relatively underexplored Salar de Pocitos salt-lake complex
• The projects are drill-ready with past exploration suggesting highly prospective layers of lithium bearing the brine potential
• C29 has signed a non-exclusive I.P. licence agreement with Ekosolve™ Limited

C29 Metals Limited (ASX:C29), an ASX-listed exploration company, has signed an option agreement with A.I.S. Resources Limited (A.I.S.) to acquire an 80% interest in the two highly prospective lithium-bearing exploration licences in Argentina's Salta Province.

These salars, namely Pocitos 7 and Pocitos 9, are part of the world-renowned “lithium triangle”, a premier lithium exploration region which, as per the company, is estimated to contain 75% of the world's lithium supply.

Project location

Pocitos Salar is situated at over 3,600 metres elevation and has a present surface expression of ~425km². The Salta-Antofagasta railway line runs within 20km of the project along with a station at the nearby town of Pocitos.

Other established infrastructure means include a national road, power, and a natural gas pipeline transit through Pocitos.

The two concessions, which comprise the Pocitos 7 and 9 projects, are located in the southern central part of the Salsar de Pocitos salt lake complex. The company believes the complex is relatively underexplored and presents an excellent opportunity. The other lithium brine players holding interests at the Salar de Pocitos are dual-listed Argentina Lithium & Energy (TSX-V: L.I.T.), Power Minerals (ASX:PNN), Spey Resources and Recharge Resources (C.S.E.: R.R.).

Source: Company update

Key terms of option agreement

If exercised, the A.I.S.' assets will be transferred to a newly incorporated Joint Venture (J.V.), with C29 having an 80% stake while A.I.S possesses the remaining 20%. However, as per the JV, C29 will manage the company's exploration activities and control its board. The option agreement’s key terms are as follows:

Source: © 2022 Kalkine Media®, data source: company update

Previous and future exploration activities

T.E.M. Survey: A.I.S. Resources (TSX-V: A.I.S.), the previous operator at the Pocitos concessions, conducted a vertical electrical-sounding configuration transient electromagnetic survey in January 2018. The survey was targeted at testing low-resistivity zones indicating the accumulation of conductive brines in aquifers below the surface of the salar.

C29 has re-published the survey results in a format compliant with the JORC code.

Test pit sampling: C29 believes the shallow test pit data from previous operators was non-representative, and hence the results have been discounted by the company.

Hydro-geological survey: The company believes that the nature of brine-hosted deposits makes the hydro-geological model necessary. Therefore, it holds a key consideration during future exploration activities.

Drilling design: The company intends to drill-test both concessions once the project acquisition is completed, as the interpretation by the previous operator is likely to change as the due diligence process advances.

To zero in on the company’s recent development, click here.

IP licence agreement

The company has signed a non-exclusive I.P. licence agreement with Ekosolve™ Limited, whose direct lithium extraction process has shown positive battery-grade extraction and recovery results from similar brines. C29 will pay Ekosolve™ a licence fee upon the product’s production and sale.

Ekosolve’s™ direct extraction technology is considered superior to older solar evaporation methods as they reduce capital requirements by eliminating solar evaporation pond requirements and providing a sustainable and environmentally friendly process.

Other details of the agreement are highlighted via the infographic shown below:

Source: © 2022 Kalkine Media®, data source: company update

What next?

C29 will continue to make progress on the due diligence process. Additionally, the company is developing an exploration program for determining the aquifer's hydrogeological characteristics, including drilling and various test-work on the drill core, water sampling, flow-testing, and more, to establish a JORC-compliant mineral resource estimate over the due diligence period.

Other planned activities are:

Source: © 2022 Kalkine Media®, data source: company update