Power Minerals Delivers Robust Technical Blueprint for Argentina Lithium Production
Power Minerals Limited (ASX: PNN) has completed a comprehensive Conceptual Development Study for its Incahuasi Lithium Project, delivering a clear technical pathway toward lithium carbonate production in Argentina's renowned lithium triangle. This significant milestone for the Power Minerals Ltd lithium project confirms the technical viability and establishes a foundation for advancing to prefeasibility studies.
The study, conducted in partnership with joint venture partner Summit Nanotech Corporation, outlines production of 5,000 tonnes per annum of high-purity lithium carbonate (99.95% Li2CO3) over a 20-year mine life. Furthermore, the development plan leverages Power's current JORC 2012 Measured and Indicated Mineral Resource of 235,073 tonnes lithium carbonate equivalent (LCE).
Management Commentary:
"We are delighted with the outcomes of the Incahuasi Conceptual Development Study, one of the core assets of our Salta Lithium Project in Argentina. The Conceptual Study provides a logical and technically feasible measure of the project's development viability."
— Mena Habib, Managing Director
Technical Foundation Supports Production Framework
The study's technical approach centres on a two-stage process combining traditional evaporation with advanced direct lithium extraction (DLE) technology. Brine extraction and initial concentration occur on-site at the Incahuasi salar through evaporation, followed by transportation of concentrated brine to a shared central DLE facility at Pocitos.
The project benefits from extensive exploration and testing data. Four diamond drill holes totalling 1,041 metres provided comprehensive brine characterisation. In addition, brine quality metrics showed total dissolved solids of 323,000-335,000 mg/L.
Consistent density above 1.2 g/ml indicated brine homogeneity throughout the deposit. Moreover, pump test results demonstrated well capacity of 20 L/sec or more with 71% efficiency.
The mineral resource underpinning the study comprises a brine volume of 221.5 km³ with an average drainable porosity of 5.4% and mean lithium grade of 198 mg/L.
| Resource Category | Brine Volume (km³) | Lithium (tonnes) | LCE (tonnes) |
|---|---|---|---|
| Measured | 151.6 | 30,163 | 160,556 |
| Indicated | 69.9 | 13,999 | 74,517 |
| M+I Total | 221.5 | 44,162 | 235,073 |
Understanding Direct Lithium Extraction: The Technology Advantage
Direct lithium extraction (DLE) represents a significant advancement over traditional lithium production methods. Unlike conventional evaporation ponds that can take 12-24 months to concentrate brine and are weather-dependent, DLE technology selectively removes lithium from brine within hours using specialised sorbent materials.
For investors, DLE offers several compelling advantages. Faster processing times reduce time to production. However, higher lithium recovery rates achieve 95%+ as demonstrated at Incahuasi.
Reduced water consumption delivers a smaller environmental footprint. Weather independence enables consistent year-round production. Consequently, higher purity products achieve 99.3% impurity rejection.
Summit Nanotech's denaLi™ technology demonstrated exceptional performance in pilot testing, achieving 95% lithium recovery with 99.3% overall impurity rejection from feed brine to eluate. Furthermore, the technology produced a lithium chloride eluate stream of 460 mg/L Li with an estimated total dissolved solids of 6.6 g/L.
How DLE Technology Works
Traditional evaporation methods require large pond systems and extended processing times that can exceed 18 months. In contrast, DLE systems process brine through selective adsorption columns, where lithium ions attach to specialised sorbent materials whilst rejecting other salts.
The lithium is then recovered through elution processes, creating concentrated lithium solutions ready for carbonate conversion. This innovative approach significantly reduces both processing time and environmental impact.
Strategic Infrastructure Positioning in Lithium Triangle
The Incahuasi Project benefits from strategic positioning within Argentina's lithium triangle, with infrastructure access through the established Pocitos industrial park. Located 275 km west of Salta city, Pocitos provides connection to the main electricity grid, gas pipeline facilities, and serves as a logistics hub for multiple regional lithium projects.
Key infrastructure advantages include established road networks connecting to the Antofagasta-Salta railway line. For instance, existing industrial facilities at Pocitos reduce development costs. Proven logistics corridors serve nearby lithium operations. Additionally, access to skilled regional workforce provides lithium extraction experience.
The Incahuasi brine field sits 70 km north of Tolar Grande community, with no permanent infrastructure currently on-site. Power requirements will be met through diesel generators, whilst supplies and services are accessed through Tolar Grande, which offers hostels providing food and lodging facilities.
Environmental Considerations
Environmental baseline studies indicated the project area has relatively low biodiversity impact compared to the greater Salar de Incahuasi surroundings. Water emerged as the most sensitive environmental issue according to socio-economic surveys, alongside monitoring and managing environmental impacts of extraction activities.
Clear Development Pathway to Production
The Conceptual Study positions the Power Minerals Ltd lithium project to advance directly to prefeasibility study phase, with specific technical milestones identified. The study recommends implementing a pilot evaporation operation at Incahuasi alongside DLE demonstration plant development at Pocitos.
Immediate Next Steps:
• Pilot evaporation operation implementation at Incahuasi
• DLE demonstration plant development at Pocitos
• Additional pump test wells for wellfield optimisation
• Geotechnical and logistics studies advancement
Key Technical Workstreams:
• Resource expansion drilling to potentially extend mine life beyond 20 years
• Integration planning with Power's broader Salta Lithium Project assets
• Water exploration for industrial requirements at Pocitos
• Advanced civil and structural engineering design
Prefeasibility Study Focus Areas
The study's recommendation to proceed with prefeasibility work validates the project's technical foundation whilst providing a clear roadmap for advancement toward production decision. Areas requiring particular attention include hydrogeology and additional pump test wells for resource and wellfield planning.
Advanced project civil and structural engineering requires comprehensive costing studies. However, the technical foundation has been well-established through the current conceptual work.
Investment Thesis: Argentina Lithium Production Platform
Power Minerals has positioned itself strategically within Argentina's lithium triangle through the Incahuasi development pathway. The company's technical approach combining proven evaporation methods with advanced DLE technology offers several investment advantages.
Resource Scale & Quality:
Resource scale includes 235,073 tonnes LCE in Measured and Indicated categories providing 20+ year mine life. High-grade brine reaches 198 mg/L lithium concentration. Furthermore, expansion potential exists with additional tenements across Salta region.
Technology Partnership:
The joint venture with Summit Nanotech provides access to proven DLE technology. 95% lithium recovery rates were demonstrated in pilot testing. In addition, 99.95% purity lithium carbonate production capability offers premium product positioning.
Strategic Location:
Established infrastructure access through Pocitos industrial park reduces development timeframes. Proximity to regional projects enables potential operational synergies. Moreover, proven regulatory environment in Argentina's mining-friendly Salta province supports development progression.
| Key Differentiators | Competitive Advantage |
|---|---|
| DLE Technology Access | 95% recovery rates, faster processing |
| Resource Quality | 198 mg/L grade, 235k tonnes LCE |
| Infrastructure Access | Pocitos industrial park, established logistics |
| Regulatory Position | Salta province, mining-friendly jurisdiction |
Market Position and Timing
The Power Minerals Ltd lithium project enters development at a favourable time in the lithium market cycle. Global demand for high-purity lithium carbonate continues to grow, driven by expanding electric vehicle production and energy storage applications.
Argentina's position as a leading lithium producer provides additional confidence in the regulatory and operational environment. The country's established lithium industry offers access to skilled personnel and proven supply chains.
Why Investors Should Follow Power Minerals
The completion of the Incahuasi Conceptual Development Study represents a significant milestone in Power Minerals' evolution from explorer to potential producer. The company has systematically advanced its Argentine assets through exploration, resource definition, and now technical development studies.
Several factors position Power Minerals as a lithium investment opportunity worth monitoring. Near-term catalysts include prefeasibility study commencement providing economic parameters. For instance, pilot plant operations will demonstrate commercial viability.
Potential resource expansion drilling results could extend project life. Integration planning across broader Salta Lithium Project may reveal synergies.
Competitive Positioning:
Advanced DLE technology access through Summit partnership delivers processing advantages. Established resource base supports 20-year production profile assumptions. Strategic infrastructure positioning utilises proven lithium region benefits. Consequently, experienced management team brings Argentine operations expertise.
Technology Validation Results
The Incahuasi project benefits from Summit Nanotech's demonstrated DLE performance, where benchtop testing achieved 98% lithium recovery with 92-99% impurity rejection across five cycles. Pilot plant operations confirmed these results at commercial scale, validating the technology's suitability for Incahuasi brine processing.
Key Takeaway:
Power Minerals has established a technically viable pathway to lithium carbonate production in Argentina's lithium triangle. With proven DLE technology, substantial resource base, and clear development milestones, the company offers investors exposure to a potential 5,000 tpa lithium operation with expansion opportunities across its broader Salta project portfolio.
The Incahuasi Conceptual Study validates Power Minerals' technical approach whilst providing a foundation for economic evaluation and production planning. As global lithium demand continues growing, Power's strategic positioning in Argentina's premier lithium region, combined with advanced extraction technology and substantial resource base, creates an investment proposition for those seeking exposure to lithium production potential.
In conclusion, the Power Minerals Ltd lithium project represents a well-positioned opportunity in Argentina's lithium triangle. With proven technology, established resources, and clear development pathways, the project offers investors exposure to potential lithium production in one of the world's premier lithium regions.
Want to Explore Power Minerals' Argentina Lithium Opportunity?
Power Minerals Limited has delivered a compelling technical blueprint for lithium production in Argentina's renowned lithium triangle. With proven DLE technology achieving 95% recovery rates, a substantial resource base of 235,073 tonnes LCE, and clear development milestones toward 5,000 tpa production, PNN presents an intriguing investment proposition in the growing lithium sector. To explore Power Minerals' complete project portfolio and development strategy across its Salta Lithium Project, visit www.powerminerals.com.au for comprehensive company information and investor updates.
