More brine tests on Power Minerals’ Salta lithium project a success
China’s Xiamen Xiangyu undertook the bulk-sample testing on Power Minerals’ Salta lithium brine, with the next step involving progression to a binding agreement.
A 40 litre bulk-sample brine test from each of Power Minerals’ (ASX: PNN) three salares in Argentina has produced successful results for for a second potential Chinese offtake partner.
The company says Xiamen Xiangyu New Energy has advised that the brine quality from each salar — Incahuasi, Rincon and Pocitos — at Power’s Salta project is of sufficient high quality to progress its memorandum of understanding with the Australia-based explorer.
The MoU with the Chinese operation, part of the Fortune 500 and Shanghai Stock Exchange listed Xiamen Xiangyu Company, covered due diligence with a view to executing a binding offtake, financing and logistics agreement.
Xiamen Xiangyu New Energy will now send a team to conduct a site visit in Argentina.
Now working toward bind offtake deal
Power executive director Mena Habib said the successful brine test represents another positive step in the company’s plans for the Salta project.
This follows successful testing by another MoU offtake partner, China’s Sunresin New Materials, which was reported last month.
“The positive outcome of Xiamen Xiangyu’s bulk-sample testing helps further cement our working relationship, and we look forward to continuing to progress our MoU towards a binding agreement,” Mr Habib added.
Xiamen Xiangyu provides end-to-end supply chain solutions for battery metals by sourcing supplies of lithium, cobalt, and nickel for battery manufacturers.
Projects adjacent to ground held by Rio Tinto and China major
The Salta project in Argentina consists of five salares within seven mining leases totalling 147,07sq km
Incahuasi is located adjacent to the ground held by Ganfeng Lithium, world’s third largest and China’s largest lithium compounds producer and the world’s largest lithium metals producer in terms of production.
The Rincon salar lies next to ground acquired recently by Rio Tinto (ASX: RIO) for US$825 million.
Power said last month that the results received from Sunresin showed the Salta project’s ability to treat brines of varying grades and compositions, which indicates the potential to develop a “significant” lithium producing operation at Salta.
Sunresin’s DLE technology extracts lithium from various brine grades and, said Power, delivered high recoveries, low costs and expedited processing times.
Sunresin is listed on the Shenzhen Stock Exchange and manufactures about 50,000 cubic metres per annum of ion exchange resins and adsorbers.
Meanwhile, Power is now preparing to undertake a preliminary economic assessment, or scoping study, of the project.
Salta is located in the province of the same name, and within the “lithium triangle” covering Bolivia, Chile and Argentina.