- Argosy Minerals (AGY) advances construction work at its flagship Rincon lithium project in Argentina in the March quarter
- Total construction work reached 67% completion at the end of the period and would be on track for first production of lithium carbonate from mid-2022
- Argosy Minerals is also pursuing a seismic study to explore lithium brine targets at the Tonopah project in Nevada.
- The company ended the quarter with a cash balance of $38.3 million and will continue to focus on achieving major milestones for both assets.
- Argosy shares are up 4.6% to trade at 45.5 cents
Argosy Minerals (AGY) said it achieved significant milestones during the March quarter in advancing its development strategy and planning on the Rincon and Tonopah projects.
Rincon Lithium Project
The lithium exploration company kicked off the new year by reaching halfway through the construction of the Rincon lithium project in Argentina.
Major works for the 2000 tonnes per annum (tpa) operation are divided into design, construction and commissioning phases, with the design phase now complete.
At the end of the quarter, total construction work was 67% complete and will be followed by the completion of plant commissioning and production testing.
At this point, Argosy believes it is on track to achieve first production of a battery-grade lithium carbonate product from mid-2022.
The company said it is progressing through an environmental impact assessment approval process to develop an additional 10,000 tpy operation to support the 2,000 tpa capacity currently under construction.
As the 2,000 tpa operation is fully funded, the company said it has financial flexibility to consider strategic investments and off-take proposals to support future expansion of the project beyond of the next stage of 12,000 tpa capacity.
The “robust” lithium market and soaring prices have reportedly prompted increased interest in investing in the Rincon project, which sits in the world-renowned “Lithium Triangle”.
Tonopah Lithium Project
Argosy Minerals’ Tonopah project is located near Albemarle’s Silver Peak operation in the US state of Nevada.
Since the successful completion of survey work in 2021, the company has advanced exploration plans focusing on three magnetotelluric targets, which may have potential for lithium brines.
These plans include a seismic survey which is currently underway and will help identify priority drill targets.
Argosy believes that the Tonopah project represents a strategic opportunity to become a world-class lithium producer and solidify its position within critical mineral supply chains in the United States.
Argosy spent $494,000 on operating activities and $3.5 million on investing activities. The company generated $19.3 million from financing activities through the exercise of options and ended the March quarter with $38.3 million in cash and debt-free.
In the current quarter, Argosy said it is focused on continuing construction work at Rincon and formalizing a strategic investment for the 10,000 tpy expansion and purchase of carbonate products. lithium. He will also seek to advance resource expansion and feasibility work, and continue exploration of the Tonopah lithium project.
Argosy rose 4.6% to trade at 45.5 cents at 11:45 a.m. AEST.