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Pursuit Minerals Unveils Maiden Inferred Resource at Rio Grande Sur Lithium Project

25 October 2023 10:37
ASX: PUR

Pursuit Minerals Ltd (ASX:PUR) has announced a significant milestone for its Rio Grande Sur Lithium Project in Salta, Argentina, with the unveiling of a Maiden JORC Code 2012-Compliant Inferred Mineral Resource Estimate (MRE) of 251.3kt LCE at an impressive grade of 351mg Li per litre.

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Figure 1: Maiden JORC Mineral Resource Estimate for Rio Grande Sur 3D Model

Impressive Maiden Inferred Resource

This significant discovery, achieved in less than seven months after acquiring the Project, places Pursuit at the forefront of lithium exploration in the region.

The inferred resource is based on recent geophysical surveys and historical drilling, covering only a fraction of the known mineralisation.

This significant progress not only establishes Rio Grande Sur as a prominent lithium project in Argentina but also foreshadows the likelihood of substantial expansion in the future.

Notably, the omission of the highly promising Mito tenement from the current MRE underscores the untapped potential for additional resource growth, with the upcoming maiden diamond drilling program, set to begin this quarter, aiming to upgrade the inferred resource.

Maiden Drilling Program

Pursuit Minerals is currently in the process of awaiting drilling permits from the Salta Mining Secretary, a crucial step in initiating their Stage 1 Drilling Campaign at the Rio Grande Sur Project.

This campaign, as illustrated in Figure 2, is poised to target specific locations identified by SRK following the completion of the TEM Survey.

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Figure 2: Proposed locations of Stage 1 Exploration Drilling

Furthermore, Stage 1 aims to introduce a pumping well, the location of which will be determined once the first two diamond holes are completed. This well will play a pivotal role in supporting the development of a JORC Mineral Resource Estimation within the measured resource category.

The Company anticipates that the drilling permit applications will be granted in the near term, building upon their progress with amendments, queries, and the earlier approval of water usage permits by REMSA earlier this year.

Project Background

Pursuit Minerals acquired over 9,260 hectares of tenements in the Rio Grande Salar, located 280 kilometres from Salta, Argentina.

Early exploration in the area had already indicated the presence of lithium, with results ranging between 350-400mg Li, consistent across all exploration holes.

In 2018, LSC Corporation of Canada published a NI43-101 compliant foreign Resource Estimate of 2.1 million tonnes LCE at an average grade of 370mg/Li to a depth of 100m, setting the stage for Pursuit’s exploration journey in the region.

2023 Exploration Update

In the 2023 Exploration Update, Pursuit Minerals detailed a site visit conducted between August 26 and August 28, with the participation of Dr. Brian Luinstra and Dr. Camilo de los Hoyos from SRK Australia and SRK Argentina, along with Pursuit representatives.

The objectives of this visit were multifaceted, including ground-truthing drilling and geophysical data locations, understanding surface geology, assessing environmental conditions, and evaluating requirements for drill pad preparation to facilitate upcoming drilling programs.

As part of their exploration efforts, Pursuit engaged Quantec Geoscience (Argentina) S.A to conduct a Transient Electromagnetic (TEM) Survey on the southern Salar tenements.

This survey aimed to interpret subsurface electrical resistivity distribution, identify key lithological units, and estimate sedimentary sequence thickness.

Preliminary data indicated low resistivity values, suggesting saturation of sediments and rocks with potentially lithium-bearing brine from depth to near the surface.

Importantly, the survey revealed brines at depths exceeding historical drilling ranges.

Additionally, Quantec conducted a Controlled Source Audio-Magneto-Telluric (CSMAT) survey on the Mito tenement, mapping subsurface resistivity to identify lithologies associated with Lithium brine and geological structures at depths of up to approximately 750 metres.

These geophysical surveys, combined with historical drilling and sampling data, played a pivotal role in developing the maiden Mineral Resource Estimate for the Rio Grande Sur Project.

Future Outlook

Recent deep drilling activities reaching depths of 500 metres, undertaken by neighbouring tenement holders in the Rio Grande Sur region, have uncovered higher-grade lithium deposits.

Coupled with an in-depth analysis of the most recent geophysical data, this exploration effort strongly indicates that the existing Inferred Resource is merely the tip of the iceberg, hinting at the presence of a significantly larger and potentially richer lithium resource lying beneath the surface.

Pursuit Minerals’ Managing Director and CEO Aaron Revelle said the Maiden JORC Resource is a very strong result for Pursuit, particularly given the short period of time since completion of the transaction to acquire the Rio Grande Sur Project.

“In this time, the Company has now issued a maiden JORC Resource and commenced commissioning of the Lithium Carbonate Pilot Plant following its acquisition earlier this year,” he said.

“We are now rapidly progressing plans to become the 3rd Lithium Carbonate Producer on the ASX.”

“Our attention is now on our upcoming drill program as we drill to depths beyond the current resource limit where neighbouring companies have been obtained impressive results and grades of 750mg/Li+ to depths of 500m.”

“Notable impressive intercepts include 785mg/Li from 249-250m approximately 2km south of our Maria Magdelena tenement and 925mg/Li from 419-421m approximately 2km east of our Mito tenement.”

“We believe that the maiden JORC compliant Inferred Resource, calculated down to only 200m depth, is just the tip of the iceberg.”

“Recent deeper drilling of higher grades to 500-600m depth by other companies on adjacent ground, and interpretation of Pursuit’s recently acquired geophysics, suggest a much higher volume of Lithium brine may be present on Pursuit’s licences.”

“We believe that this will be outlined by the upcoming drilling programme planned for late 2023.”

PUR’s Australian Stock Exchange-listed share price has risen 11.11% and is currently trading at $0.010 (10.30am UTC+ 8 hours).

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