Pursuit Minerals has kicked off diamond drilling at the Mito tenement, aiming to unlock a vast lithium brine system that could significantly boost its Rio Grande Sur resource. The drill program follows advanced geophysical work and a recent resource upgrade, positioning the project for potential long-term growth.
- Diamond drilling underway at Mito tenement targeting deep conductive system
- Large-scale lithium brine target extends from 250m to over 1km depth
- Drilling supports recent 1.264Mt LCE JORC Mineral Resource upgrade
- Further exploration planned at adjacent Demasía Rio Grande I tenement
- Development activities including pilot plant relocation and evaporation ponds progressing
Drilling Commences on High-Confidence Lithium Brine Target
Pursuit Minerals Ltd (ASX:PUR) has commenced diamond drilling at DDH-3 within the Mito tenement, part of its Rio Grande Sur Lithium Project in Argentina's Salta Province. This marks the first drill hole designed specifically to test a large, continuous conductive system identified through advanced Controlled Source Audio-frequency Magnetotellurics (CSAMT) reprocessing.
The reprocessed data revealed a laterally extensive conductive body stretching from roughly 250 metres down to beyond one kilometre, interpreted as a basin-scale fluid-bearing brine system. Unlike prior isolated anomalies, this feature exhibits remarkable continuity across multiple survey lines, making it a compelling target for lithium brine mineralisation.
Potential to Expand Upgraded Mineral Resource
The drilling program aims to build on the recently upgraded JORC Mineral Resource of 1.264 million tonnes lithium carbonate equivalent (LCE) at an average grade of 424 mg/L lithium. This comprises 705,000 tonnes classified as Indicated at 443 mg/L lithium and 559,000 tonnes as Inferred at 405 mg/L lithium. DDH-3 is expected to deliver critical geological and hydrogeological data to refine models of basin architecture, aquifer continuity, permeability, and lithium distribution.
Managing Director Aaron Revelle described the commencement of DDH-3 as a "significant milestone," highlighting the target as one of the highest-quality exploration opportunities across Rio Grande Sur. He emphasised the potential for this drilling to materially expand the resource base and underpin the project's long-term development trajectory.
Broader Exploration and Development Progress
Following DDH-3, Pursuit plans to move the drill rig to the recently acquired Demasía Rio Grande I tenement, where exploration will test the interpreted continuation of the basin-scale conductive system. Environmental submissions for this and the Rio Grande I tenement are expected imminently, facilitating further exploration across the expanded landholding.
Parallel development activities include relocating the company’s pilot plant to the Sal Río 02 tenement and constructing evaporation test ponds. Operating the pilot plant onsite will provide valuable operational and engineering data, helping to de-risk future commercial operations and optimise process flowsheets.
Additionally, Pursuit is finalising technical addendums to its Pre-Feasibility Study (PFS) that will explore lithium chloride production pathways alongside lithium carbonate, offering flexibility in product streams and scaling options.
Technical Rigor and Resource Confidence
The Rio Grande Sur resource estimate and drilling program are underpinned by robust technical work, including a comprehensive JORC-compliant Mineral Resource and Ore Reserve estimation process. The Pre-Feasibility Study supports the technical and economic viability of extracting lithium-bearing brines via conventional salar brine extraction methods.
Geophysical data and drilling have been cross-validated by Andes Exploration LLC, with the Competent Person confirming the integrity of the data and the geological interpretation. The Ore Reserve is classified as Probable, reflecting confidence in Indicated Resources and hydrogeological modelling, although no Measured Resources or Proven Reserves have yet been declared.
The company’s approach includes conservative lithium cut-off grades and processing assumptions consistent with industry standards. Lithium recovery rates of 57% have been applied based on pilot-scale work, with economic models demonstrating positive net present value under conservative pricing scenarios.
Looking Ahead Amid Growing Lithium Demand
Pursuit’s Rio Grande Sur project sits within an established Argentine mining jurisdiction, benefiting from stable tenure and no known permitting impediments. The project’s scalability aligns with sustained global demand growth for lithium chemicals, driven by electric vehicle and energy storage markets.
With drilling underway at a newly defined, high-confidence target, the market will be watching for assay results that could validate the potential to significantly grow the resource base. Meanwhile, ongoing development and exploration at adjacent tenements and the Sascha Marcelina gold project highlight Pursuit’s diversified growth strategy.
Bottom Line?
Results from DDH-3 will be pivotal in confirming the scale and quality of Rio Grande Sur’s lithium brine system, setting the stage for potential resource expansion and development acceleration.
Questions in the middle?
- Will DDH-3 assays confirm the extent of the conductive brine system and translate into resource upgrades?
- How will the lithium chloride pathway impact project economics and product diversification?
- What timelines can investors expect for pilot plant commissioning and evaporation pond operations?