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Dempsey Minerals sky high as it pursues lithium strategy in Argentina

Published: 10:05 29 Jun 2018 AEST

View of Argentine salt flat
Gravity survey results support Hombre Muerto’s potential

Dempsey Minerals Ltd (ASX:DMI) is riding the lithium wave with its primary focus on the prolific Lithium Triangle area of Argentina and shares reflect the strategy.

The ASX-listed, Perth-based explorer is up almost 275% since the start of 2018 and on Thursday shares reached a new 12-month high of 29.5 cents.

This week’s surge follows completion of the acquisition of Blue Sky Lithium Pty Ltd, which holds the Hombre Muerto Lithium Project in Catamarca Province, Argentina.

Positive gravity survey results

Results from a recent gravity survey completed for 15 kilometres along the length of the Candelas lithium brine project support the potential of Hombre Muerto.

A deep basin-channel environment has been interpreted to depths of up to 600 metres.

The results are in line with a CSAMT survey confirming the excellent potential for the presence of a substantial amount of brine.

Prolific salt flat

Hombre Muerto Basin is one of the world’s most prolific salt flats, hosting one of the lowest content levels of impurities in the industry.

Dempsey’s project is adjacent to Galaxy Resources Limited’s (ASX:GXY) Sal de Vida project and FMC Corp’s (NYSE:FMC) Fenix lithium project, which has been in operation since 1997.

In February 2018 Dempsey signed an exclusive option agreement with Australian company Blue Sky Lithium to acquire 100% of its Argentine mining tenement interests.

Blue Sky, through managing director and founder Juan Pablo (JP) Vargas de la Vega, has had a long association in the mining industry in Australia and Latin America, and in particular in the lithium sector.

New Board appointments

Completion of the transaction has resulted in the appointment of two new directors to Dempsey’s Board.

JP Vargas de la Vega is the new managing director and Jinyu (Raymond) Liu is a new non-executive director.

Vargas de la Vega is a mineral industry professional with 15 years broad experience in ASX mining companies, stockbroking and private equity firms.

Lithium industry experience

He has a firm understanding of the lithium market stemming from his prior role as a specialist lithium analyst in Australia and has negotiated agreements with one of the world’s largest lithium producers SQM (NYSE:SQM).

Liu is a qualified mining engineer with a commercial background and is founding managing partner of Havelock Mining Investment, a Hong Kong investment company.

He has been involved with numerous investments in ASX-listed companies and is a director of Okapi Resources Ltd (ASX:OKR).

Patrick Corr has resigned from the Board due to increased business commitments.

Dempsey’s non-executive chairman Nathan McMahon said: “We are pleased to have finalised the acquisition of Blue Sky Lithium and warmly welcome JP and Raymond to the Board and thank Patrick for his term with the company.”

“JP and the team have already shown a real ‘go to’ attitude and have hit the ground running.

“The results from our initial work at Hombre Muerto have exceeded our original expectations and we look forward to rapidly progressing the project.”

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