Lithium X joint venture receives Argentinian pond construction permit

VANCOUVER (miningweekly.com) – Junior lithium explorer and project developer Lithium X's joint venture (JV) with Salta Exploraciones (SESA), at the flagship Sal de los Angeles project, in Argentina, has received permits to build an initial ponding facility.

The Vancouver-based company this week said the initial ponding facility is designed for an output of about 2 500 t/y of lithium carbonate equivalent (lce). The permits allow for the construction of brine collection, pumping, piping and ponding facilities comprising 62.6 ha of lined ponds, designed to produce a high-purity 5% lithium concentrate. 

The JV ponding facility will cover a maximum of 100 ha (about 1%) of the 8 156 ha of the Sal de los Angeles landholdings, with construction activities slated to start immediately.

“This is a key milestone for our company and will certainly strengthen and differentiate our status in a very crowded lithium sector. We look forward to working closely with the local authorities and workforce in developing sustainable environmental, work and social programmes to ensure we develop the facility in harmony with the Puna region,” executive chairperson Paul Matysek stated.

CEO Brian Paes-Braga added that Lithium X has already been approached by several end-users of the expected concentrate, who want to conduct downstream testing.

The company cautioned, however, that the ponding facility has not been subject to a feasibility study and that there is no guarantee the facility will successfully produce a commercial product on a profitable basis, or at all.

Under the terms of the JV agreement, SESA must contribute about $6-million or the required amount to build and operate an initial 2 500 t/y LCE ponding facility by incurring all construction costs, including one full year of post-construction operation, to earn a 50% stake in the JV company.

Potasio y Litio de Argentina (PLASA), in which Lithium X has the right to earn 80%, and which is 100% owner of Sal de los Angeles, will contribute $3.3-million for a 30% contributing participation in the JV and the right to sell the lithium products. Further, PLASA is also fully carried for the remaining 20% for contributing brine from existing wells on the project, including a free-flowing artesian well that is expected to supply the operation initially.