Lithium Chile (TSXV: LITH) (OTC: LTMCF) announced Monday that Argentum Lithium, its subsidiary in Argentina, has been awarded Block IV in the recently completed bidding round in the Salar de Arizaro.

Argentum was one of 13 companies that competed in a public tender process by the Salta province that encompassed five different blocks. Block IV was the largest of the five blocks.

It covers an 84.5-square-km concession located north of Lithium Chile’s project in the Arizaro basin, situated approximately 18 km north of drill hole ARDDH-02 well that the company has already completed.

The Salar de Arizaro project covers more than 200 sq, km. of the basin, containing an estimated 1.53 million tonnes of lithium carbonate equivalent in the indicated category and 1.79 million tonnes in inferred.

“Being awarded Block IV is a wonderful achievement for us! It has the potential to significantly increase our lithium resource without the added expense,” Lithium Chile’s CEO Steve Cochrane stated in a press release.

“We have the equipment, capable team and infrastructure already in place, which positions us to swiftly advance the project. Adding an additional 8,400 hectares to our already substantial land position makes Lithium Chile a dominant player in the basin,” he added

In accordance with the commitment made in its successful bid, Lithium Chile has provided an initial payment of the initial payment of approximately $5.74 million to REMSa, the provincial mining and energy company, for the award.

An environmental impact study will be filed immediately for an exploration program to be completed on Block IV during the year. The company’s established infrastructure near Block IV will allow for optimized resource utilization and seamless integration of exploration activities, it said.

JV opportunity

According to Lithium Chile, there is already extensive geological data available on Block IV from an exploration program completed by Portofino Resources during 2023. That exploration activity included more than 40 surface samples brine samples and 69,000 metres of geophysical surveys.

Capitalizing on the extensive work and knowledge gained by Portofino during the exploration program carried out on Block IV, the company has signed a partnership agreement with Portofino outlining a joint venture arrangement.

The agreement would enable Portofino to acquire a 50% net equity interest in Block IV by contributing 50% of award expenses and exploration costs. Completion of the joint venture is contingent on Portofino raising the necessary funds and entering into a definitive agreement – anticipated to be completed in the next 60 days, Lithium Chile said.

Shares of Lithium Chile rose by 6.0% as of noon ET on the Block IV award announcement. The Calgary-based lithium explorer has a market capitalization of C$109.4 million ($81.9 million).

Source: MINING.COM – Read More