MGX to buy 80% interest in Salinitas lithium brine tenements

26 July 2018 (Last Updated July 26th, 2018 11:36)

MGX Minerals has signed an option agreement with AIS Resources to purchase an 80% interest in the Salinitas lithium brine mining tenements in Argentina.

MGX Minerals has signed an option agreement with AIS Resources to purchase an 80% interest in the Salinitas lithium brine mining tenements in Argentina.

Located in the lithium triangle comprising Argentina, Salar de Salinas Grandes and the  province of Salta, the acquisition includes a 4,308ha contiguous land package.

The company noted that the land package is situated in the Puna region of north-west Argentina near the border of Chile.

“The land package is situated in the Puna region of north-west Argentina near the border of Chile.”

With a surface elevation of around 3,400m above sea level, the Salinas Grandes salar forms a composite closed basin with internal drainage, where discharge occurs by evaporation.

Precipitation, superficial and groundwater incursions serve as sources for water inflow.

MGX is planning to undertake a transient electromagnetic method (TEM) geophysical study along with trenching.

Thereafter, the company will conduct a drill programme along the edge of the salar.

The objective of the drilling campaign is to test for shallow, near surface brines and determine locations with anomalous concentrations of lithium.

Under the terms of the agreement, MGX is required to pay $250,000 by the end of this month to secure the option.

The company will be offered an undivided 80% in the project by making aggregate payments of $3.2m.

Additionally, MGX has agreed to spend at least $1.2m on project activities before 31 May 2020.

Recently, MGX developed a rapid lithium extraction technology that does not require the construction of large, multi-phase, lake sized, lined evaporation ponds.

This will reduce the physical footprint and enhance the quality of extraction and recovery across a complex range of brines.