LIT discovery could boost stock price :: InvestMacro

source: Streetwise Reports 07/18/2022

Lithium carbonate prices are up 340% year over year, and a junior lithium explorer based in Argentina digs up some healthy lithium grades with a salary that stretches beyond the confines of his property and on junior perks.

Argentina Lithium & Energy Corp. (LIT: TSX.V; PNXLF: OTC; OAY3: FSE) newly Complete his first exploration Drilling a hole in the Rincon West project in Argentina’s Salta province, a lithium explorer not only found significant grades of lithium – he also found evidence that a resource of Rincon salar lithium belonging to the world’s largest mining company extends into the LIT land pack.

This is important because Rio Tinto Plc (RIO: NYSE; RIO: ASX; RIO: LSE; RTPPF: OTCPK) We considered Rincon lithium salaries — which has yet to produce an ounce of the coveted lithium carbonate used in smartphones, power tool, and electric car batteries — so much that the miner paid $825 million ($825 million) to acquire Rincon earlier this year. Mining and salary from private equity firm Sentient Equity Partners.

“What we’re drawing in the hole aligns with the values ​​posted in (Rincon) Salar, so it’s absolutely certain that the paycheck runs under our (Rincon West) property.

– Miles Ride Ott, Vice President of Argentina for Lithium Exploration

In a conference call with investors and the media on July 14, the vice president of Exploration Miles Rideout in Argentina told the audience that the brine deposit that the company drilled and hit healthy lithium grades is really an extension of the splendor of Rincon in Rio Tinto.

during the call, Streetwise Reports Request more evidence.

“We have the geophysical evidence and physical evidence from the first drilling hole. What we’re drawing in the hole corresponds to the values ​​published in (Rincon) salar, so it’s absolutely certain that the salar extends below our property (Rincon West).

Rideout noted that Argentina Lithium, a Grosso Group company, had not had any talks with Rio Tinto about its discovery.

Let’s not forget that the company has drilled some promising lithium grades in hole RW-DDH-001, the first in a 5-hole program in the 24.7 square kilometer Rincon West area.

Potential saline aquifers

Drilling targets were set earlier this year after the company Complete a Transient Electromagnetic (TEM) scan On approximately 36 kilometers of lines identified potential saltwater stratification of more than 64% of the property.

Brine samples were collected during a 70-μm-thick permeabilization period in RW-DDH-001 returning lithium grades ranging from 225–380 mg/L (225–380 mg/L).

The grades are as good as the grades at the neighboring Rincon saloon, Rideout said, with similar peak values.

The ultimate goal is to determine sufficient mineralization to form the first mineral resource compliant with National Tool 43-101. That should happen by mid-2023.

In a report released on July 13, Head of Research at Fundamental Research Corp, Syed Rajiv, noted that identifying a lithium resource “is a faster and cheaper process compared to mainstream metals such as gold (or) copper.”

Perhaps most importantly, he mentioned that LIT is trading at just $215 per hectare versus an average of $524 per hectare for beginner pre-resource lithium explorers — in part due to lithium carbonate prices rising 340% year over year.

“The sector has had several mergers and acquisitions in the past year, and we believe miners and battery manufacturers are constantly seeking attractive lithium projects to acquire to secure long-term/stable supply,” Rajeev wrote.

Rajeev LIT gives a fair value of C$0.52.

Other properties of lithium

Argentina Lithium has the option to earn 100% interest in Rincon West by meeting certain requirements. The company also plans to conduct electromagnetic surveys this year on two other lithium projects: Antuvala North and Inkawasi. Its last major lithium holding is Pocitos, also in Argentina.

LIT has about C$4 million in treasury, and President and CEO Nikolaos Kakos told the public that the company continues to search for more lithium properties in the region.

The Rincon West project is located in South America’s “lithium triangle”, which spans parts of northern Argentina and Chile, as well as southwest Bolivia. The triangle includes the Atacama, Olaroz, and Uyuni (or salars) salt flats.

In fact, this region contains more than half of the world’s identified reserves of lithium.

The Grosso Group is a leading mineral exploration company in Argentina, having made four world-class discoveries through four different companies – Navidad, a massive undeveloped silver game; Gualcamyo gold mine; Chinchillas Silver, Lead and Zinc Mine; and Amarillo Grande deposits of uranium and vanadium.

LIT has 97.6 million issued (fully diluted) shares but little institutional ownership. Management owns about 30%.

The company is trading in a 52-week range of C$0.96 and C$0.135. LIT closed at C$27 on July 18.


1) Brian Sylvester wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or his family members own the securities of the following companies mentioned in the article: None. He and his family members are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referenced in this article: None.

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4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the Site, may have a long or short position in said securities. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or selling such securities on the open market or otherwise from the time of the decision to publish an article until three business days after the article is published. The foregoing prohibition does not apply to articles that merely repeat in substance the company’s previously published versions. As of the date of this article, the officers and/or employees of Streetwise Reports LLC (including their family members) own the securities of Argentina Lithium & Energy Corp. , a company mentioned in this article.

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