Ann: Argosy Upgrades Rincon Lithium Project JORC Resource, page-76

Well I was underdone thinking the JORC would be more Wednesday to Friday Slavvy.

But I’ll tell u what, IMHO

HERE COMES STAGE 3 FAST TRACKED !!!

“ The Resource estimate upgrade further validates the Company’s fast-track development strategy to FULLY DEVELOP the Rincon Lithium PROJECT toward commercial production.”

So they have just stated they have the resource to meet both the production rate and a long term life of mine.

As long as they can get the OTer to stump up with a chunk of cash to initiate stage 3 ponds and plant then their stage 3 production aim of late 2019 (from last preso) might just come to fruition.

THATS FAST TRACKING if ever I saw it.

That’s BARELY A YEAR AWAY. Sorry for all the shouting but imo it’s warranted !!!

Thinking about it that’s why they have cracked on with the upgraded stage 2 ponds as this would give them initial stage 3 feed.

I’m now looking to either the PEA annmnt or the OT, probably the latter, for the deletion of
stage 2 and straight to stage 3 IF the OTer wants it of course !!! SILLY STATEMENT ?

I’m loving this guy more and more

What I also find fascinating is the rather detailed hydrogeo info JZ has put in this annmnt.

“ The brine aquifer is bounded by colluvial and alluvial deposits formed from the erosional detritus from the surrounding outcrop. Less-saline groundwater is likely to be associated with the alluvial deposits where rare stream flow events will occur. BRINE AQUIFER WATER LEVELS are sustained by a COMBINATION OF GROUNDWATER INFLOW from the surrounding geology and recharge from surface water runoff; THE LATER IS LIKELY TO BE SMALL.

Poster Comment: a clear indication to me that recharge is definitely on the cards and being established groundwater via the enriched stratigraphy of the salar there’s a good chance they will get more resource naturally migrating into their tenaments.

It is estimated the aquifer sequence within the project tenement boundaries, to a vertical depth of 102.5mbgl, contains an Indicated Mineral Resource Estimate (MRE) of 245,120 tonnes of Li2CO3. The sandy-aquifers have been drilled to a depth 147m in one drill-hole and the Mineral RESOURCE REMAINS OPEN AT DEPTH over much of the project area. No cut-off grade has been applied to MRE.

Poster Comment: Self explanatory !!!

“It should be noted that the Indicated MRE is a static estimate; it represents an estimate of the volume of potentially recoverable brine that is contained within the defined aquifer. It does not take account of modifying factors such as the design of a pumping scheme, which will affect both the proportion of the Resource that is ultimately recovered and changes in grade associated with mixing between each aquifer unit and the surrounding geology (such as the marginal alluvial fans), that will occur once pumping starts. The Indicated Resource also takes no account of recharge to the upper-most aquifer, which is a modifying factor that may increase brine-recovery from this unit and may affect long- term grade. Pumping tests completed to date are of relatively short duration and provide data on aquifer hydraulic properties; they do not indicate the operational pumping rates that may be sustained from individual bores or the response of the brine aquifer to long- term operational pumping.”

Poster Comment : BUT WE ARE NOT QUITE THERE YET and why this is an INDICATED RESOURCE.

“It should be noted that the Indicated MRE is a STATIC ESTIMATE it represents an estimate of the volume of potentially recoverable brine that is contained within the defined aquifer. It does not take account of modifying factors such as the design of a pumping scheme, which will affect both the proportion of the Resource that is ultimately recovered and changes in grade associated with mixing between each aquifer unit and the surrounding geology (such as the marginal alluvial fans), that will occur once pumping starts. The Indicated Resource also takes no account of RECHARGE TO THE UPPER-MOST AQUIFER which is a modifying factor that MAY INCREASE BRINE-RECOVERY from this unit and may affect long- term grade. Pumping tests completed to date are of relatively SHORT DURATION and provide data on aquifer hydraulic properties; THEY DO NOT INDICATE OPERATIONAL PUMPING RATES that may be sustained from individual bores or the RESPONSE of the brine aquifer to LONG -TERM OPERATIONAL PUMPING.”

“Further drilling and testing are recommended to provide data on the response of the aquifer to operational pumping (such as long-term pumping rates and produced lithium grade). The data from this testing will support the development of a dynamic model (a numerical groundwater flow model) to optimize life-of-project brine abstraction.”

“Next Steps

The following hydrogeological works may be considered to further refine the hydrogeological model:

1) Longer duration pumping tests to determine the hydraulic properties of each hydrostratigraphic unit (including specific yield), changes in production grade over time and the optimal brine-abstraction rate;

2) Borehole Magnetic Resonance logging on some of the existing drill holes to provide alternative estimates of porosity, specific yield and permeability;

3) Additional investigations at the interface between the eastern edge of the brine aquifer and the adjacent alluvial and colluvial deposits; and

4) Develop a dynamic model (i.e. a numerical simulation model) to simulate the long- term response of the aquifer to pumping. The model will require data from the field work noted above.”

Poster Comment: So it seems they arnt resting on the indicated. We may eventually see a MEASURED if they get this stuff together.

All the same there r hints that with the development of a dynamic model we may see a further resource upgrade in both resource certainty AND amount yet again.

Go Jerko and PA !!!

Excellent annmnt and love the JZ hints that seem to be converted to fact with each annmnt.

d.