Pursuit Minerals Limited - June 2024 Quarterly Report
PUR (PUR) Share Update July 2024 Monday 29th
Pursuit Minerals Reports Promising Lithium Drilling Results and Financial Update
Pursuit Minerals Limited (ASX:PUR) has released its quarterly report for the period ending June 30, 2024, highlighting significant progress in its Rio Grande Sur Lithium Project in Salta, Argentina, and a successful capital raise.
Instant Summary:
- Completion of Drill Hole 1 with multiple intercepts above 600mg/L Li.
- Commencement of Drill Hole 2 as part of the Stage 1 Drill Program at RGS.
- Successful oversubscribed capital raising of $2.4 million AUD completed.
- Cash balance of $2.024 million AUD at quarter end.
- Commencement of production at 250t Pilot Plant to produce first Lithium Carbonate in H2, 2024.
Drilling Success at Rio Grande Sur
Pursuit Minerals Limited has made significant strides in its Rio Grande Sur Lithium Project, completing Drill Hole 1 (DDH-1) with outstanding results. The hole achieved a depth of 560 meters, revealing high-grade lithium assays, particularly in a highly porous sandy unit at approximately 100-130 meters depth, with grades averaging above 600mg/L. This zone is earmarked for a potential pumping well due to its heightened porosity and average grade of 620mg/L.
Following the successful completion of DDH-1, the drilling crew has mobilized to Drill Hole 2 (DDH-2) on the Sal Rio 02 tenement. Drilling progress at DDH-2 is well advanced, with completion expected by the end of August 2024.
Capital Raising and Financial Position
Pursuit Minerals successfully completed an oversubscribed capital raising of $2.4 million AUD, bolstering its financial position. As of June 30, 2024, the company's cash balance stood at $2.024 million AUD, with no debt. This strong financial footing supports ongoing and future project developments.
Lithium Carbonate Pilot Plant
The company has commenced production at its 250t Pilot Plant in Salta, Argentina, with plans to produce the first batch of Lithium Carbonate in the second half of 2024. The Pilot Plant aims to test the circuit chemistry in a real-time environment to minimize scalability and quality control issues. Initial sample batches using synthetic brine are expected to produce approximately 50-100kg of product.
Pursuit's engineering team is also developing the final pond layout and design for the 250tpa plant, with construction anticipated in 2025, subject to environmental approvals and other conditions.
The high-grade lithium intercepts and successful capital raise are positive indicators for Pursuit Minerals. These developments are likely to boost investor confidence and potentially drive up the company's stock price. The commencement of production at the Pilot Plant marks a significant milestone, positioning the company for future commercial operations.
Investor Reaction:
Analysts are likely to react positively to the high-grade lithium results and the successful capital raise. The commencement of production at the Pilot Plant is also expected to be well-received, as it demonstrates the company's progress towards commercial production.
Conclusion:
Investors should keep an eye on the continued progress of Pursuit Minerals' drilling program and the upcoming production milestones at the Pilot Plant. These developments could have a significant impact on the company's valuation and long-term growth potential.