I believe AGY is awaiting for formal exploration permits for Pocitos and Teresa from the Mines Department: it must be kept in mind that Argentinean bureaucrats can be almost as slow as Australian public servants (but not quite as slack!) So we need to be a bit patient.
On reserves on Rincon: Argentina doesn’t enforce JORC (few countries if any do). On the other hand, Acuterra’s (Alurralde's company) mines at the southern end of the Salar de Rincon had more than 10 drills with results published back in the late 1980’s or early 1990’. Of the top of my head, these mines have around 60 to 70,000 t of lithium carbonate equivalent. AGY may need to do a proper JORC to satisfy ASX.
On exploration: These are Salares, that is to say, large accumulation of halite – common salt. For most perforation rigs this kind of material is like butter and can be drilled at much faster speeds than hard rock. Helping is the fact AGY will analyse brines, liquids that require little preparation prior to analysis. A 3 to 6 month exploration is believable.
AGY directors are playing it well, by carefully and cautiously raising investor’s expectations while working in the Projects. It can only result in better SP.
Cassandra, qui non crediderunt
AGY Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
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