Rincon Lithium Project
Rincon is one of the core assets within our Salta Lithium Project, located in the renowned Lithium Triangle of South America, near the western side of Salta Province, Argentina. This region is recognised as a global hotspot for lithium brine resources and is home to neighbouring projects held by major companies, including Rio Tinto (ASX: RIO), Argentina Lithium and Energy Corp. (TSX: LIT), and Argosy Minerals (ASX: AGY).
Rincon has a JORC Mineral Resource Estimate (MRE) of 292,564 tonnes of Lithium Carbonate Equivalent (LCE) at a lithium concentration of 248 mg/L, reflecting significant potential for expansion and development. We hold a strategic part of this prolific salar, where more than US$1 billion has already been invested by surrounding companies to advance and develop their assets.
Joint Venture with Navigate Energy Technology and Repenergy Investment Private
We are developing Rincon under a fully funded Joint Venture Agreement with Navigate Energy Technology and Repenergy Investment Private. Navigate will provide a US$5 million equity investment to develop Rincon into a significant lithium-producing operation. The joint venture will also leverage Direct Lithium Extraction (DLE) technology, which has been proven to deliver substantial cost, water, and energy savings compared to traditional methods.
Navigate is responsible for managing the development and construction of the proposed DLE processing plant, while Power Minerals ensures that all permits and licenses necessary for the project are in place.
Preliminary Economic Assessment
In November 2023, a Preliminary Economic Assessment (PEA) was completed by Golder Associates to a Scoping Study standard. The PEA outlined a robust, low-cost operation with the following key metrics:
• 14-year DLE operation with annual production of 7,061 tonnes of battery-grade LCE.
• Pre-tax NPV of US$501.85 million, with strong forecast margins and a payback period of just 3 years.
• Capital expenditure estimated at US$216.55 million.
Exploration and Expansion Potential
We drilled the deepest hole to date on the Rincon Salar, reaching an aquifer depth of 600 meters without encountering the basement. Our drilling program has confirmed the thickness and depth of the lithium brine aquifer, highlighting the potential for a JORC Mineral Resource expansion. Additionally, the project’s proximity to neighboring lithium operations allows for potential brine capture from adjacent projects due to the flow characteristics of lithium brines.
Future Plans
We are focused on further drilling and exploration to expand the JORC Mineral Resource and improve the Preliminary Economic Assessment (PEA). We have secured access to a fresh water source, a critical input for future DLE operations, and plans to evaluate potential water resources and additional brine sources in the area.
The Rincon Project is strategically positioned to play a significant role in the growing demand for lithium as the world transitions towards greener energy solutions.
