VANCOUVER (miningweekly.com) – TSX-V-listed Millennial Lithium has signed a definitive option agreement to acquire the prospective Pocitos West project, in Argentina.
Pocitos West is next to ground recently acquired by fellow TSX-V-listed explorer Pure Energy Minerals and is near known lithium resources, including the Rincon project located 32 km to the north and the Sal De Vida project, 90 km to the south.
The option may be exercised within three years by making a total of $4.5-million in payments for a 100% interest in the project.
Pocitos West is located 160 km from Salta, and about 40 km due west of Millennial's flagship Pastos Grandes project, where recent drilling has confirmed significant lithium brines from surface to depths of 400 m. Pocitos West is directly accessible by Salta Provincial Highway 17 and close to other high-quality regional and site infrastructure including local labour, rail and power generation.
The 60-m-long Pocitos salar basin was previously drill tested by 12 shallow holes in 1979 by an Argentine government agency. The most significant result from the historical work programme includes a shallow drill hole, which averaged 417 parts per million (ppm) lithium and 15 300 ppm potassium.
In 2010, Li3 Energy announced the results of 46 brine samples taken from just below the surface of the salar, with brine assays ranging from 300 ppm to 600 ppm lithium. These samples were taken immediately east of the Pocitos West property. Previous geophysical studies conducted by Li3 Energy also demonstrated the Pocitos basin, where sampled, is about 500 m deep and that the prospective brine target is open and extends westward toward the Pocitos West property, the company said.
The news boosted Millennial’s TSX-V-listed stock, which closed up 11.73% at C$1.81 apiece on Thursday.