Portofino’s Game-Changing Move: What Investors Need to Know

Portofino Resources Inc. (TSX-V: POR) (OTCQB: PFFOF) (FSE: POTA) has recently executed a Binding Letter of Intent to acquire the original Option agreements for the Yergo Lithium Brine Project in Catamarca, Argentina. This strategic move ensures that all rights and concession ownership of the 2,932-hectare project are directly under Portofino’s control, paving the way for the company to advance its previously submitted drill permit application and commence a drill program.

Key Takeaways

• Portofino secures 100% direct concession ownership of the Yergo Lithium Project.
• The project is strategically located near the Salar Tres Quebradas (3Q Project), previously acquired by Zijin Mining for C$960 million.
• Historical data suggests a shared geological history, hinting at significant untapped potential.
• Sampling results have been promising, with values up to 373 mg/l Lithium.

Patience is a Virtue Particularly in Mining Exploration

David Tafel, CEO of Portofino, weighed in on the acquisition’s significance, stating, “This agreement is a pivotal moment for Portofino as it overcomes a legal hurdle created by the previous concession owner, and secures 100% direct concession ownership.”

The Yergo Lithium Project, situated in Catamarca, Argentina, covers the entire Aparejos Salar, which is approximately 9 kilometers from the Salar Tres Quebradas (3Q Project), previously developed by NeoLithium Corp. and later acquired by Zijin Mining for C$960 million in 2022.

Shared Geological History: Zijn Mining’s 3Q Project

Historical data paints a compelling picture. The shared geological history between the Yergo and 3Q projects, attributed to historic volcanic activity, hints at its potential. Tafel noted, “Given the proximity of Neo Lithium’s 3Q project, it is likely that the Aparejos salar has experienced a similar geological history, including lithium and potassium enrichment, due to their shared evaporitic climate and local geology.”

Highlighting the potential of the Yergo property, early stage exploration by Neo Lithium reported surface lithium grades of 190 mg/L. In contrast, Portofino’s adjacent Yergo property showcased up to 373 mg/L.

What’s Next for Portofino?

“Our previously planned exploration activity can now recommence after an approximate one-year delay.”  The agreement now allows the advancement of Portofino’s drill permit application and the initiation of a planned 4-hole drill program.

The acquisition terms include the removal of a legal injunction favoring Portofino, the transfer of all rights and title to the Yergo concessions, and a payment of US$600,000 by Portofino to the concession owner.

 

Click here to read “Portofino’s Big Lithium Bet Four Years Ago Looks Like its About to Pay Off”