Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQX:LILIF) announced that it has secured a two-year exploration permit for its Paso de Sico mining concession, part of its Rincon West Project.
The permit will enable the company to conduct diamond and rotary drilling on the property, which lies adjacent to Rio Tinto's Rincon Project.
In a statement, Argentina Lithium said it plans to mobilize a diamond drill to initiate a six-hole exploration program aimed at assessing the potential for lithium brines at the site.
"The grant of the drilling permit is a long-awaited step which allows us to advance the Rincon West project evaluation," said CEO Nikolaos Cacos.
“Recent drilling on our West Block properties has successfully identified extensive host formations saturated with lithium-rich brines. We intend to execute a similar program on this northern block, which is currently undrilled.”
Paso de Sico is being considered as a potential location for future processing and extraction facilities, given its advantageous location near major highways and a 345 kW power corridor. The concession spans four contiguous mining blocks covering more than 791 hectares at the northern edge of the Salar de Rincon, approximately 50 kilometers from Olacapato, where Argentina Lithium maintains an operational base.
The broader Rincon West project includes approximately 8,000 meters of planned drilling over the next 18 months, funded by a prepaid drilling contract established in 2023, which supports up to 15,500 meters of exploration work.
The company acquired an option for the Paso de Sico property through an agreement with a local vendor. The terms require Argentina Lithium to pay $1.5 million over two years, with one final payment of $400,000 remaining, and to spend $2.3 million on exploration and development within three years.
The option agreement includes a 3% net smelter royalty (NSR), which the company can acquire for an additional $1.5 million.