Pursuit Minerals Limited (ASX:PUR) has strategically entered the lithium market with its recent acquisition of Trilogy Minerals, which possesses substantial lithium brine assets in the renowned Lithium Triangle of Latin America — an area recognised for its significant lithium reserves —positioning the Company to capitalise on its potential for significant growth, as indicated in a recent Resolve Research report projecting a 575% upside in its share price.
A ‘Strong Buy’
Peer group analysis suggests that the Company could potentially see a 575% upside in valuation primarily due to its lithium assets.
Upon establishing a JORC resource exceeding 250,000 tons of LCE and factoring in gold and nickel interests, the target price for Pursuit Minerals is projected to be A$0.061, underscoring the Company’s potential for significant growth.
Strategic Location in the Lithium Triangle
The acquisition of Trilogy Minerals in March 2023 marked a game-changing move for Pursuit Minerals, granting them full ownership of approximately 9,260 hectares of prime tenements known as the Rio Grande Sur Project.
Situated within the expansive 27,500-hectare Rio Grande Salar in Argentina, this Project is strategically positioned in the heart of the Lithium Triangle, alongside key players like Livent’s Fenix operation at Hombre Muerto Salar and Allkem’s Olaroz Lithium Mine.
This region boasts some of the world’s largest lithium reserves and has become a focal point for lithium exploration and production, with Pursuit Minerals’ strategic move into this territory a testament to the Company’s vision and commitment to becoming a significant player in the global lithium market.
Notably, the Lithium Triangle is a hotspot for prominent lithium industry leaders, including SQM, Albermarle, Galan Lithium, and Argosy Minerals, making Pursuit’s Rio Grande Sur Project an attractive addition to their portfolio.
A Maiden JORC Resource on the Horizon
One of the key milestones for Pursuit Minerals is the announcement of a Maiden Joint Ore Reserves Committee (JORC) resource, which is expected before the end of 2023.
The Company’s initial focus will be on its southern tenements within the Rio Grande Salar in Argentina, where geophysical surveys have identified promising drilling locations. This, combined with historical data, is likely to result in the establishment of a maiden JORC resource for lithium carbonate equivalent in the measured resource category.
Swift Progress Towards Production
The Company has made considerable progress towards lithium production, with Pursuit Minerals’ successful acquisition of a Pilot Plant in Salta, Argentina, which is set to process the extracted lithium brines and provide samples for battery manufacturers and lithium carbonate end-users by Q1 2024.
A Bankable Feasibility Study for a 20,000 tons per annum (tpa) lithium carbonate equivalent (LCE) project could be completed by the end of 2024, with this swift movement towards production positioning the Company as a contender in the lithium market.
Bumper Valuations in the Lithium Sector
The lithium market has witnessed bumper valuations for successful lithium brine plays, exemplified by the A$1.1 billion valuation awarded to Argosy Minerals in early 2023, despite its current market capitalisation being significantly lower at A$344 million.
Pursuit Minerals also appears to be on a trajectory that could lead to similar valuations as it advances its lithium projects.
PUR’s Australian Stock Exchange-listed share has risen 22.22% today and is currently trading at 1.1c (11:45 am UTC+ 8 hours).
To access the complete Resolve Research report and gain comprehensive insights into Pursuit Minerals Limited, click here.