Categories: Energy
Topics: Lithium Stocks

EV Boom Driving Lithium Gains

Recharge Resources Ltd. (CSE: RR)(OTC: RECHF) — currently trading around C$0.48 per share — has signed an option agreement to acquire up to a 100% interest in the Pocitos-2 lithium project, which is contiguous to the company’s flagship, 100%-owned Pocitos-1 project, Argentina. 

Pocitos-2 comprises a 532 hectare lithium brine project located just outside of Salta where prior groundwork and geophysics suggest continuity of the targeted lithium brine aquifer continuing from Pocitos-1. 

Recharge Resources CEO David Greenway commented via press release:

“The world needs more lithium and Recharge’s now larger Pocitos Project continues to present that it may be a contributing puzzle piece to this growing concern. The future of the Pocitos Project continues to improve and we couldn’t be more excited by the continued fantastic results. Increasing the footprint with the highest lithium content assay on the entire salar, with geophysics suggesting the continuation of the target aquifer is a significant milestone both from the perspective of the potential size of the resource but also as we begin to take into consideration water disposal after lithium extraction, plant footprint and other engineering milestones going forward. This is a fantastic achievement for Recharge and stakeholders as we move toward our next goals of establishing an NI 43-101 compliant mineral resource, a scoping study of the project, and formalizing our offtake agreement for lithium carbonate.”

On 31 January 2023, Recharge announced that its Pocitos-1 drill hole — which successfully intercepted the 2018 lithium brine discovery aquifer — flowed for a 2-week period and assayed at an average of 161 PPM lithium showing consistent flow and grade of lithium content from the target aquifers at approximately 350 meters below surface. 

The Pocitos-2 project is currently permitted for the drilling of two wells, which means, upon closing of the acquisition, the Recharge team can move forward with drilling to assess the continuity of lithium content from Pocitos-1 to Pocitos-2. 

Recharge Resources is aiming to build up to a 20,000 tonne per year EkoSolve™ lithium extraction plant at Pocitos-1 in order to supply Richlink Capital Pty Ltd. clients up to 20,000 tonnes of lithium per year as previously announced under a Letter of Intent and framework agreement. Lithium is currently selling in the spot market at approximately US$69,000 per tonne. 

Recharge licensed EkoSolve — which eliminates the need for costly evaporation ponds — in Q3 2022 and has an Argentina-wide license for the utilization of the extraction technology. 

Next steps at Pocitos-1 include geophysical surveying and the drilling of a third production-ready borehole to be included in the upcoming mineral resource calculation. 

Additionally, Recharge is advancing its 100%-owned Georgia Lake North & West lithium project in Ontario, Canada, and its 100%-owned Brussels Creek copper-gold-palladium project in British Columbia, Canada. 

At Georgia Lake, the company recently completed a high-resolution heliborne magnetic survey. Data compilation from the survey is anticipated later this quarter wherein the company plans to deploy an aggressive spring 2023 field program.

At Brussels Creek, Recharge has announced a fully-funded Q1 2023 drill program slated for 900 meters across 3 drill holes to test the potential for copper-gold mineralization.

Looking ahead, speculators can expect news flow from multiple 100%-owned projects throughout 2023 as Recharge continues its early-stage exploration efforts across multiple high-demand, clean-energy commodities on multiple continents. 

For more on Recharge Resources, please be encouraged to contact the company’s IR department at 778-588-5473 or via email at info@recharge-resources.com.

Mike Fagan
Editor, Resource Stock Digest