Pursuit Minerals Rockets Lithium Resources 339% and Nears Pilot Plant Production

Resource Expansion Solidifies Rio Grande Sur’s Global Standing

Pursuit Minerals Limited (ASX: PUR) has delivered a standout update in its December 2024 quarterly report, announcing a substantial 339% increase in lithium resources at its flagship Rio Grande Sur project in Salta, Argentina. The upgraded JORC Mineral Resource Estimate now totals approximately 1.1 million tonnes of lithium carbonate equivalent (LCE) at a high-grade concentration of 505.8 mg/L lithium, positioning Rio Grande Sur as a world-class lithium asset with significant growth potential.

This resource expansion was underpinned by comprehensive geological and drilling work, including two diamond drill holes and extensive brine sampling, supported by geophysical surveys. The independent assessment by Andes Exploration LLC confirms the robustness of the data and the promising continuity of lithium mineralisation, a critical factor for future development.

Pilot Plant Nears Production Milestone

Complementing the resource upgrade, Pursuit is advancing its 250 tonnes per annum lithium carbonate pilot plant located in Salta city. The plant is on track to produce its first batch of lithium carbonate, both battery and technical grade, by the end of the first quarter of 2025. This pilot operation is a pivotal step toward commercial-scale production, enabling the company to validate processing circuits and establish early revenue streams.

Engineering efforts continue with the finalisation of pond layouts and environmental permitting underway, targeting construction commencement in 2025. The phased approach to scaling production aims to reduce capital expenditure and accelerate time to market, reflecting a pragmatic strategy in a competitive lithium landscape.

Strategic Asset Review and Acquisition Focus

Beyond lithium, Pursuit is conducting a strategic review of its Commando Gold Project in Western Australia, capitalising on record gold prices near US$2,775 per ounce. The project, with historical high-grade intersections but limited deep drilling, is being evaluated for potential value creation through targeted exploration or other strategic options.

Simultaneously, the company is actively pursuing acquisitions in Argentina, leveraging its local expertise amid a surge in M&A activity and government incentives. Argentina’s emergence as a Tier 1 mining jurisdiction, highlighted by recent multi-billion-dollar deals involving Rio Tinto and BHP, provides a fertile environment for Pursuit to expand its portfolio and enhance shareholder value.

Financial Discipline Amid Growth Ambitions

Despite these ambitious developments, Pursuit is maintaining stringent cost controls, reporting a cash balance of approximately AUD 0.565 million at quarter-end. The company has implemented aggressive cost-cutting measures, including reduced corporate spending and demobilisation of capital-intensive drilling programs. A recent convertible loan note raising of AUD 1 million before costs provides some financial runway as the company progresses its pilot plant and feasibility studies.

Looking ahead, the company plans to complete feasibility studies in the first half of 2025, focusing on a multi-stage production approach designed to optimise capital efficiency and expedite commercialisation. Offtake discussions are ongoing, aiming to secure demand and underpin revenue growth from the pilot plant’s output.

Pursuit’s December quarter report reflects a company at a critical inflection point, transforming from exploration to production readiness while navigating financial prudence and strategic growth opportunities in a dynamic lithium market.