American Salars expands Argentinean feast with acquisition of Cauchari lithium brine project

American Salars is building its Argentine portfolio with its intent to acquire the promising Cauchari lithium brine project.

American Salars is building up a real spread in Argentina. Pic: Getty Images

Special Report: Canadian-listed American Salars is moving to expand its Argentinean portfolio with the signing of a letter of intent to acquire the Cauchari Ines 01 lithium brine project.

• American Salars acquiring the Cauchari Ines 01 lithium brine project in Argentina
• Sampling at the project has returned up to 383ppm lithium below the salt crust
• Project is close to existing plays such as Rio Tinto’s Rincon salar

The Cauchari project covers about 1235 hectares over part of the 2550km2 Cauchari Salt Lake basin and is known to contain lithium concentrations, with sampling returning up to 383ppm lithium from a depth of 30cm below the salt crust.

It is located about 13km from Rio Tinto’s Rincon salar – an approved US$2.5 billion development that will eventually export 60,000tpa of lithium carbonate – and about 80km from the town of San Antonio de Los Cobres with access provided by existing mining tracks and roads. 

There is also immediate proximity to railroads, electricity and gas pipelines.

Cauchari Ines 01 sits within a known geological district with significant lithium and potassium sampling and is near the San Antonio de los Cobres and Pocitos industrial centre.

American Salars (CSE:USLI) chief executive officer Nick Horsley says the potential of this section of the Salar de Cauchari is immense.

“Cauchari is a proven producing salar operated by Exar-Ganfeng & Lithium Argentina that produces battery grade lithium carbonate,” he added. 

“The company will look to continue to increase its footprint on the Cauchari and Pocitos lithium projects.”

The Cauchari project and surrounding lithium producers. Pic: American Salars

Mineral potential

The Cauchari Salt Lake is extended and narrow-shaped, sub-meridian oriented with a length of about 40 km with irregular borders and features historical production of borax minerals.

Reconnaissance exploration has suggested the Cauchari Salt Lake is underlain by a structurally controlled sedimentary basin that forms an aquifer of over 250km2 with maximum depth ranging from 100-500m.

Mineralisation in the Cauchari Salar include borates, sulphates, carbonates and brines rich in lithium, potassium, boron and rare earths. 

Significant concentrations of lithium were determined in brines from the Cauchari Salt Lake area at the northern end of the company’s claim boundary.

Growing lithium portfolio

The letter of intent for Cauchari Ines 01 adds to American Salars’ ongoing efforts to build a lithium portfolio in a counter-cyclical strategy timed to beat the eventual turnaround in the lithium market.

It holds the Black Rock South lithium brine project in Nevada, USA, where phase 1 exploration last year highlighted up to 180.5ppm lithium.

However, it is in Argentina where it holds the most ground centre around its flagship Pocitos project that covers 800 hectares of prime ground on the Pocitos Salar within the famed Lithium Triangle.

The potential of this project was high enough that the company moved in March 2025 to expand Pocitos with signed letter of intent for the acquisition of the Salar de Pocitos project that increases its total landholding in this area by a whopping 1635% to 13,880 hectacres (138.8km2).

This makes American Salars the second largest property holder on the Salar de Pocitos in Salta Province.

It already has a gross non-JORC NI 43-101 resource of 760,000t lithium carbonate equivalent at the combined Pocitos 1 and third-party Pocitos 2 blocks, or net resources of ~456,000t LCE.

Watch: Gaining ground in Argentina’s lithium game

This article was developed in collaboration with American Salars Lithium, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as American Salars expands Argentinean feast with acquisition of Cauchari lithium brine project