For all the criticisms levelled against Argentine President Javier Milei\u2019s policies, most analysts agree that his pro-business and pro-foreign investment reforms are changing global perceptions towards the South American nation.<\/p>\n
During his campaign, he promised to free Argentines from the \u201coppression\u201d of the state and presented sweeping reforms including steps to facilitate exports, end price controls and privatise companies in a bid to kick-start the process of economic de-regulation.<\/p>\n
The package of reforms and deregulation measures, which include more than 200 articles and an accompanying fiscal package, were enacted this week after months of debate and violent protests.<\/p>\n
But as highlighted by Pursuit Minerals\u2019 (ASX:PUR)<\/strong><\/a> managing director and CEO Adam Revelle in Stockhead\u2019s Explorers Podcast with \u2018Garimpeiro\u2019 columnist Barry Fitzgerald<\/strong><\/a><\/em>, those measures might already be working with the country, tipped to head into its sixth recession in a decade, recording its first week without inflation in 30 years a mere six months after Milei\u2019s inauguration.<\/p>\n Argentina\u2019s mining and resources sector is amongst the beneficiaries with the provisions including customs and foreign exchange incentives to encourage investment in the country.<\/p>\n \u00a0<\/p>\n That bodes well for the four new lithium projects set to begin full-scale operations in the weeks and months ahead and whose assets are expected to triple Argentina\u2019s production capacity by 2027.<\/p>\n Near-term producer Pursuit Minerals (ASX:PUR)<\/strong><\/a> has Argentina lithium front of mind at its\u00a0 Rio Grande Sur lithium brine project, which is showing signs of early success after the first hole returned assays up to 629mg\/L below the existing 251,300t resource.<\/p>\n Rio Grande Sur is right in the thick of things with Rio Tinto (ASX:RIO)<\/strong>,<\/a> Ganfeng Lithium, Albermarle and Arcadium surrounding its 92.33km2 land holding in the Salta province of South America\u2019s lithium triangle.<\/p>\n With the lithium big guns operating in the country PUR managing director Aaron Revelle believes the country is seeing renewed investor interest in what is already a highly productive part of the world for lithium.<\/p>\n \u201cMileli is trying to create a stable foreign direct investment platform, which arguably he\u2019s doing, mainly through taming inflation,\u201d he told Stockhead.\u00a0<\/em><\/p>\n \u201cWhen we look specifically at the lithium space, Chile has historically been the frontrunner but we\u2019re now seeing a reversal with Argentina bringing on four major lithium projects.<\/p>\n \u201cIt is becoming a more favourable jurisdiction in which to operate and while we are an earlier stage company, we\u2019ve been able to advance the project in a very short period of time given we only completed the acquisition of the project just over a year ago,\u201d he says.<\/p>\n \u00a0<\/p>\n Revelle believes PUR is in the next stage of real growth having just completed the first diamond hole in its maiden drilling program as it strives towards a resource upgrade this quarter.<\/p>\n \u201cWe\u2019re also in the process of producing our first lithium carbonate from the pilot plant\u2026 not many juniors have a clear-cut pathway to production whereas us for us its very straightforward, we have a plant that\u2019s operating,\u201d he says.<\/p>\n \u201cIt was a second-hand plant that we bought from another company that had been testing brines in Argentina, so we know that the technology works at Rio Grande.<\/p>\n \u201cWe\u2019ve gone through the chemical engineering of that and we\u2019re working through the steps of adapting the results we\u2019re getting from our drilling program and feeding that into the plant and then moving the plant to site where you\u2019ve got a small-scale 250 tonne per annum operation,\u201d he says.<\/p>\n \u201cFor us it\u2019s not \u2018can you produce\u2019, we know we can produce but it\u2019s about how big we can make it, which is all about putting that technical de-risking in place.<\/p>\n \u201cThat\u2019s a key value differentiator for Pursuit in the long-term.\u201d<\/p>\n \u00a0<\/p>\n PUR is now in the process of drilling its second hole at the Sal RIO 02 tenement at Rio Grande, which is expected to reach between 500 to 600m in depth \u2013 significantly deeper than the existing resource \u2013\u00a0with results expected over the coming months.<\/p>\n The location of the second drill hole was selected by the geological onsite team following interpretation of the Transient Electromagnetic (TEM) survey results from fieldwork carried out in late 2023, which indicated the presence of a thick conductive layer considered highly prospective for lithium brine.<\/p>\n Revelle says the company is\u00a0highly enthusiastic about the potential results to come from DDH-2 especially with regard to the potential size, scale and grade of the project.<\/p>\n In addition to PUR\u2019s stage 1 drilling program, operations continue at the lithium carbonate pilot plant which remains on track to produce first lithium carbonate in the second half of 2024.<\/p>\n Ongoing discussions with potential offtake partners and end users are also progressing as is strong dialogue\u00a0with relevant government authorities over the environmental permitting for evaporation ponds to be constructed on site.<\/p>\n Tune in below!<\/p>\n\n On mobile? Click here <\/strong><\/a>to listen with Apple podcasts, here <\/strong><\/a>for Spotify or here <\/strong><\/a>for Google Podcasts.<\/p>\n \u00a0<\/p>\n While Pursuit Minerals is a Stockhead advertiser at the time of writing, it did not sponsor this article.\u00a0<\/em><\/p>\n The post Why Argentina cutting red tape could be the start of a lithium mining boom<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Mega miners surrounding PUR\u2019s Rio Grande asset <\/strong><\/h2>\n
Clear pathway towards lithium production <\/strong><\/h2>\n
Second drill hole underway<\/h2>\n