A.I.S Resources’ mining projects position the company well to help meet the soaring demand for gold and lithium.
The global energy transition to renewable power and electric vehicles (EVs) is triggering a massive surge in demand for strategic battery metals, especially lithium. According to a recent report from the International Energy Agency (IEA), demand for lithium is expected to grow 40-fold by 2040, making it an essential commodity for companies like A.I.S. Resources.
Six A.I.S. lithium mining projects
As a lithium explorer, the company is capitalising on this demand by focusing on six lithium mining projects in the Lithium Triangle, which is home to 60% of the world’s identified lithium reserves. The company’s projects are well-positioned to meet the growing demand for this valuable resource. A.I.S. also has four gold projects, with two gaining significance due to the commodity’s increased price as a result of widespread economic instability.
With its strong presence in the strategic battery metals and precious metals markets, A.I.S. is well-positioned for future growth.
Candela II Project, Incahuasi Salar
This 300-hectare mineral claim has been optioned to Spey Resources (listed CSE: SPEY), who has drilled five HQ diameter exploration wells and will start drilling up to eight production wells in Q1 2023. A.I.S. currently retains a 20% equity interest with a $6m buyout for the balance if the NI43-101 resource estimate exceeds 45,000 MT of lithium metal equivalent.
If more than 45,000 MT of lithium is produced, A.I.S. receives $250,000 for each additional five MT if SPEY elects to buy A.I.S’ 20% interest. If A.I.S. retains its 20% interest, then its share of the plan cost will be approximately $26m and at 10,000 MT production at $54,000 per tonne – the levy value for exports set by the Argentinian government. A.I.S. will receive approximately $90m a year in royalties.
Pocitos 1 & 2 Projects
These two mining projects are 800 hectares and 532 hectares in size, and are optioned to Recharge Resources (listed CSE: RR). A.I.S. retains a 7.5% royalty on lithium carbonate sales for both properties and has invested $1.5m exploring the projects.
Previous surface sampling, trenching, and VTEM geophysics carried out in 2018 suggested the targeted lithium brine aquifer continuing from the Pocitos 1 block through the Pocitos 2 block. The highest trench sample was 181 PPM lithium, and is the highest lithium value found on the Pocitos salar to date.
Drilling from Recharge’s 2022 drill campaign at Pocitos 1 assayed over a two-week period averaging 161 PPM lithium, exceeding Recharge’s technical team’s expectations. Recharge is committed to advancing its lithium projects, providing updates as they become available.
Pocitos 7 & 9 Projects
A.I.S. retains a 20% interest in the 800 hectares by 600 hectares project, which is currently optioned to C29 Metals (listed ASX: C29) for a total option fee of $430,000 for a nine-month exploration license, plus a total of $2.38m for C29 to acquire 80% of the two properties.
C29’s January 2023 drill campaign on the Pocitos 7 property concluded at 420m with a packer test intercepting a +30m brine aquifer from 370-400m, at Hole (PCT-23-01). A flow test was conducted through a 49mm pipe with a submersible pump and achieved a pumping rate in excess of 2,000L an hour. The average grade of three packer assay results was 129 ppm lithium, with a maximum assay of 142ppm lithium, indicating a trend that lithium is concentrating at the 400m depth level above a clay layer with low porosity.
The next step for Pocitos is to undertake a magnetotellurics (MT) geophysical survey to locate the most prospective position for the next hole. Existing available geophysical data has penetrated only to depths of circa 250m, and an MT survey will allow mapping of geologic structures to depths of at least 500m.
Yareta III Project
A.I.S. has retained the option to acquire Yareta III, which covers 1,525 hectares, and is easily accessible by road with a highway going through the northern section. Located in the south of the Cauchari Salar in Jujuy Province, the mining project was substantially explored by Orocobre – sampling drilling and geophysics nearby. VTEM geophysics shows low (<0.02ohm-m) aquifers with K,Mg,Li brines (not saltwater which is >0.026) nearby by Orocobre in 2010. The drill hole data suggests the lithium brines are at depth and concentrated.
New global lithium projects
As a forward-thinking company, A.I.S. is always on the lookout for new opportunities to expand its portfolio of high-value lithium mining projects. Our team is actively sourcing potential projects worldwide, with a focus on identifying regions with untapped lithium reserves and favourable mining conditions.
Gold price growth
Gold has become increasingly valuable in 2023 due to several factors, including the global economic downturn, inflation, and bank insolvencies. Gold has long been considered a safe haven for investors seeking to preserve their wealth in times of economic uncertainty.
The Bright Gold Project
A.I.S. Resources has two main gold mining projects, the first being the Bright Gold Project which is strategically adjacent to E79 Happy Valley. Historically, the exploration 57 sq km license EL006194 has yielded 341,000 oz gold averaging 22 g/t Au, with another 771,700 oz from the immediate neighbouring area. The entire Bright Gold Project has recorded production of over 730,000 oz from both alluvial and rock mining. A.I.S. is actively exploring the Golden Bar Prospect, only 6km from E79’s Happy Valley Project. The company has completed two drill holes and is awaiting the assay results from core samples. A.I.S Resources plans to identify and target similar gold-bearing structures as E79, given their success and the closeness of their project.
Fosterville-Toolleen Gold Project
A.I.S. Resources’ second key gold mining project is the Fosterville-Toolleen Gold Project, which includes the 26 sq km Exploration Licence EL6001. The project has reported production of 7,000 tonnes @ 10 g/t Au from the top 60m and the discovery of an 88 gm nugget found on surface. It is the closest drill-ready property to Agnico Eagle’s Fosterville Mine, which has past and present reserves of 9 Moz gold and is the lowest-cost producer worldwide at $315/oz and 34.3 g/t. A.I.S. has conducted a drilling programme in November and is currently conducting Aircore/RC Drilling on the western side of the exploration licence EL006001 with an initial target of 20 drill holes and an overall 42-hole programme planned. The drill hole depth will be an average of 65m. A.I.S. Resources plans to conduct further exploration due to the activity by majors in the immediate vicinity.
A.I.S. Resources will help meet the rising demand for gold and lithium
A.I.S. Resources is a diversified investment company that is positioned for future growth due to its strong presence in the lithium strategic battery metals and gold markets. The company’s expertise and experience in these two sectors make it well-suited to capitalise in these markets and provide a hedge against global financial insecurity.
Please note, this article will also appear in the fourteenth edition of our quarterly publication.
