Neo Lithium Corp (CVE:NLC) (OCTMKTS:NTTHF) has said it continues to operate its 3Q project in Catamarca Province, Argentina under strict measures due to the coronavirus pandemic and has the cash to move it into full development.
In an update on its operations, the firm said its aims were to maintain production of 3%-4% lithium brine from the project, continue the optimization of processing at the pilot plant in Fiambalá, and move closer to full development of the property.
READ: Neo Lithium produces battery-grade lithium carbonate at its pilot plant in Argentina
"The operations are active and under very strict and measured protocols to ensure the health and safety of our employees and contractors, while protecting and advancing our objectives. As of the date of this press release the Catamarca Province has had no (coronavirus) COVID-19 cases," it added.
On March 13, the Argentinian government ordered a national mandatory quarantine effective from March 20, which was subsequently extended to May 10. But on April 3, mining was declared an essential activity and the company has worked closely with provincial and federal authorities towards establishing protocols and gaining approvals to resume operations.
"We have made significant progress at the 3Q Project and fortunately we did not lose ground due to the global pandemic from an operational perspective," Waldo Perez, CEO of Neo Lithium said in the statement.
"We also remain very active in our strategic discussions concerning the funding and ultimately, path to potential construction and future production at the 3Q project."
The group's finance chief Carlos Vicens added: "Very few companies in the lithium space in Argentina have the local team in place to be able to navigate through these turbulent times.
"In addition to the technical team and local knowledge we have a significant cash position today of more than C$30 million that will be extremely useful in the months to come."
The Catamarca Province is the largest lithium producing area in Argentina and the 3Q project covers approximately 35,000 hectares, while the Salar complex within the area is around 16,000 hectares.
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