Millennial Lithium (ML.V) seems to be serious about becoming one of the companies dominating Argentina’s salar-projects as the company has now announced it has acquired an option to purchase a 100% stake in the Pocitos West project which consists of almost 16,000 hectares within walking distance from the Rincon project and right next to Pure Energy Minerals’ lithium claims.
The option to acquire the property can be exercised within three years by making total cash payments of US$4.5M with regular payments every six months. We would expect Millennial Lithium to complete its earn-in at or before the 36 month anniversary, as the Pocitos salar seems to be very attractive as an Argentinean government agency assayed 417 mg/l lithium in 12 shallow holes which were drilled almost 40 years ago.
As we have seen at the Pastos Grandes project, the deeper one drills, the higher the lithium grades, and we would actually expect the company to discover higher grade brines on Pocitos West at depth as well, as Li3 Energy (LIEG) reported assay results between 300 and 600 mg/t immediately east of the property optioned by Millennial Lithium. The same company was able to confirm the Pocitos basin reaches a depth of approximately 500 meters, and owning 16,000 hectares in a hotspot like this could really boost the value of the company. The TSX Venture Exchange still has to sign off on the transaction, as one of the vendors is a non-arm’s length party of the company.