PNN secures Pocitos water drilling approval
Power Minerals gets approval for hydrological drilling at Rincon joint venture in Argentina's Salta province
Drilling targets industrial water source needed for direct lithium extraction operations at Pocitos project
Navigate Energy poised to release US$4 million investment commitment for JV
The drilling at the Pocitos project within the JV area is aimed at securing an industrial water source, which is essential for direct lithium extraction operations.
This program will explore freshwater resources within the extensive alluvial fan northeast of the Pocitos salar.
Finding a source of industrial water will strengthen Power Minerals' (ASX:PNN) plan to establish the Rincon JV with Navigate Energy as a lithium carbonate production hub in South America.
'Moving ahead with drilling to identify an industrial water source helps us progress our development plans,' managing director Mena Habib said.
'Pocitos has the potential to offer this required water source and we look forward to seeing what drilling will reveal.'
Pocitos project
The Pocitos project sits within Salta province in South America's famed lithium triangle, a region recognised as the go to destination for lithium brines drawing majors and juniors alike.
Pocitos itself benefits from direct access to the General Belgrano Railway connecting to Pacific (Chile) and Atlantic (Argentina) ports, integration with existing natural gas pipelines and connection to the Cauchari and Altiplano solar farms, and support from a reliable legal and regulatory mining framework along with a skilled workforce.
Ongoing infrastructural improvements such as the paving of highway Route 27, a planned high-voltage electrical connection from Cauchari, and a 435-hectare industrial park at Pocitos, add further to the project's strength.
PNN adds that integration of the Rincon JV entity is nearing completion, which will release US$4 million in investment from Navigate Energy as part of its commitment.
This includes funding dedicated to both Rincon and Pocitos development activities.
The broader Rincon JV area has a JORC resource of 292,564t lithium carbonate equivalent at a lithium concentration of 248mg/L.
Development will be through the use of direct lithium extraction, which has been proven to deliver substantial cost, water, and energy savings compared to traditional methods.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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News.com.au
12 hours ago
- News.com.au
South America's critical minerals bounty has Power Minerals all fired up
Critical minerals are hot property and South America might hold the key to securing supplies Power Minerals is progressing its Argentinean lithium brine JVs towards pilot-scale production It is also focusing on exploring for and defining a niobium and REE resource at the Santa Anna project in Brazil Critical minerals have been hogging the limelight whenever the discussion swings around to resources, and for good reason. The commodities are crucial components of high-tech applications governments in the west and east both view as strategic, and have supply that's constrained in one way or another. Lithium and rare earths are undeniably important for a range of technological applications and, importantly, have supply chains that are largely controlled by China. 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Speaking to Stockhead, managing director Mena Habib said the company's Argentinean lithium brine projects are fairly advanced and are the subject of joint ventures with separate direct lithium extraction technology companies. The Rincon project sits on the western side of the famed Salta Province and is next door to the projects held by Rio Tinto (ASX:RIO) and Argosy Minerals (ASX:AGY) on the same salar (salt lake). PNN's project currently has a JORC resource of 292,564t of lithium carbonate equivalent with more than half of that in the higher confidence measured and indicated categories. 'We have a joint venture partner (Navigate Energy) who's putting in US$4 million to earn 59% in the project,' Habib said. 'Their job is to fund and develop the project to production, so it gives us a good opportunity not to dilute shareholders. 'It's a proven area. Both Rio and Argosy are producing at small scale so you know it's a good mining jurisdiction, right province and obviously the right salar.' The company plans to have a pilot plant in the next 12 months, allowing the company to catch up with fellow small cap Argosy. PNN also has the Incahuasi salar, which is adjacent to Ganfeng Lithium, and has a resource of 249,300t LCE with the vast majority (235,100t) contained within the measured and indicated categories. 'Once again, we've done the work. We've got our resource. We've put a pumping well and we have a joint venture with direct lithium extraction company Summit Nanotech,' Habib said. 'They are doing testing now at their facility, and they're also doing a PEA. So post that, if it's all good, they then fund the 1000t plant on site, which is expected to cost roughly $20 million, and at that point they earn 45%.' While the company will be minority holders in the two Argentinean projects, Habib said the non-dilutive deals with separate DLE companies will allow it to move into small-scale production across multiple projects next to big producers. He added that partnering with the Chinese for Rincon and the Canadians for Incahuasi balanced the company's risk profile and attracted interest from investors with differing profiles. Rincon is also aligned with the company's planned Pocitos lithium carbonate hub, which has access to existing infrastructure such as rail and power. PNN recently secured approvals to drill for fresh water, which is essential for operations and is expected to be in abundance at that location according to geophysical work. 'We'll truck the brine from Rincon there, and then we'll process the final product and rail it straight to Chile,' Habib said. Brazilian critical minerals hunt Besides its Argentinean lithium projects, Power also has an option agreement to acquire the promising Santa Anna niobium and rare earths project in Brazil's Goiás state. 'We'd been on the hunt for critical minerals such as niobium and also rare earth elements in Brazil when we saw an opportunity at Santa Anna,' Habib said. 'It's a decent-sized carbonatite that is equivalent in size to CBMM's, which produces over 80% of the world's niobium at the moment. 'When we acquired the option, only a small amount of drilling was done. It was all to 30m and they had grades up to 3.36%, which is 30,000 ppm.' Since then, the 2000m of drilling carried out as part of its due diligence has proven there's niobium mineralisation at decent grades from surface. Non-executive director Caue 'Paul' Araujo adds that carbonatites often end up with some sort of mining activity due to their rich mineral endowments. 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Habib adds the company has a good vendor which is the fifth largest bauxite producer in Brazil and is keen to mine PNN's tailings for phosphate. 'We have signed a strategic partnership with them to look after all the permitting. They've given us the auger drill now for no cost and we've just started a 1000m campaign just so we can get ready. 'We'll go deeper where it's high grade at surface.' That's the only part of the carbonatite that's really been scratched to date. 'But we took the risk and drilled 135m into the hard rock and had mineralisation at end of hole,' Habib noted. 'If you look at like ARN, these guys have gone deep and hit mineralisation way beyond 100m.' Habib points out the next drill campaign will include some diamond drilling to really test the continuity at depth. With mineralisation in the first 100m, indications are any future mine would be amendable to open pit operations. 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News.com.au
3 days ago
- News.com.au
Closing Bell: ASX hits record high as Bitcoin closes in on a personal best
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News.com.au
3 days ago
- News.com.au
Suspension of giant Chinese mine another lift for lithium revival
CATL's giant Jianxiawo lepidolite mine suspended for at least three months over permits Lithium prices have gained on supply concerns amidst speculation suspension could last up to 12 months Australian spodumene producers have marked big gains today on the news Lithium tailwinds are looking increasingly stronger with news that China's largest lithium battery producer CATL has been forced by Chinese regulators to suspend operations at the giant Jianxiawo lepidolite mine in Jiangxi province. The suspension – the second time the mine was shut in less than a year – will reportedly last for at least three months and is due to non-compliance with permitting requirements. Interesting that @catl_official is learning they aren’t more powerful than regulators. China will retain controlling influence over #lithium price for at least a few more years but it is clear the Middle Kingdom knows price has to rise. â€' Joe Lowry (@globallithium) August 10, 2025 Shutting Jianxiawo is expected to have a noticeable impact on lithium supplies with sources flagging that it supplies anywhere from 3% to 6% of the world's refined lithium supply while UBS is estimated it provides feedstock for 8% of China's lithium carbonate production. The suspension could also last longer than three months with MST Financial saying that it was due to CATL not renewing its kaolin mining licence following scrutiny over state control of strategic resources under the updated Mineral Resources Law, which is aimed at countering practices that lead to destructive pricing practices. MST believes this could result in the suspension lasting up to 12 months, which reflects the timeline of a review process of CATL's mining licence renewal. Supply and pricing Capital Markets said it had already factored in some closures of higher cost lepidolite operations into its modelling, noting previously that it expects to see lepidolite supply of ~85,000t lithium carbonate equivalent vs reported capacity of between 120,000t and 150,000t LCE but recovering to 120,000t LCE in 2026. However, should the suspension extend through to 2026, it expects its modelled small surplus to be at risk, which will put continued upward pressure on pricing. Any impact on lepidolite supply will be welcomed by Australian spodumene producers as it would mean greater demand for their product. This is particularly true since global demand for battery electric vehicle have grown this year, which has in turn raised demand for lithium. Lithium prices have already moved with lithium carbonate futures on the Guangzhou Futures Exchange rising 8% by mid-day on Monday to 80,560 yuan ($17,196) per tonne. Spodumene supply from Australian producers is also likely to be welcome by Chinese refiners given that they have a well-deserved reputation for reliable supply. This is important as the refiners need feedstock to maintain their production of lithium-ion batteries to meet growing BEV and energy storage demand. Australian lithium plays rising The news is seen as largely positive for the lithium sector in Australia with shares of the major lithium producers all seeing significant gains. Liontown Resources (ASX:LTR) jumped 17.75% on Monday to close at 99.5c despite having just raised $316m through a two-tranche placement last week while Pilbara Minerals (ASX:PLS) took the skies with a 19.17% gain to $2.30. Mineral Resources (ASX:MIN) had a somewhat more subdued rise of 11.68% to $37.95 while IGO (ASX:IGO) lagged behind its peers with a 8.6% rise to $5.43. Meanwhile, Piedmont Lithium (ASX:PLL), which is in the process of acquiring Sayona Mining (ASX:SYA), rose 15.39% to 15c. Advanced explorers such as Lake Resources (ASX:LKE), Core Lithium (ASX:CXO) and Argosy Minerals (ASX:AGY), which have feasibility studies in place or which are progressing towards an investment decision have also seen big gains. AGY soared 31.03% to 3.8c, CXO gained 12.5% to 11.3c and LKE is up 10.26% to 4.3c.
