Folks my rundown and thoughts gathered from yesterday’s GM. In my opinion and considering Jerko has only returned from Argentina, I’m envisaging some good news flow over the course of the next week or so. Notes as follows;
Rincon:
- Priority is Rincon as stated in previous announcements, Stage 1 lab scale LCE is key to opening AGY onto another level and our differentiator from other juniors. I sense they have had discussions with Asian lithium connections as during the meeting on a number of occasions I kept hearing “once we prove the concept and demonstrate we have something that works, then there are many that are ready to talk”. Conservative timeframe for stage 1 lab scale is within a year. This is a very conservative timeframe and I believe with financial support, this can easily be completed well before 12 months.
- From previous announcements, regulatory approvals and permits have already been granted. There will be minimal expenditure on exploration and no need for a JORC. The project has already been explored, past drilling has occurred and historic data available. Hands on deck to prove the concept
- Development of test works to commence shortly. Currently busy appointing and setting up sub-contractor infrastructure in the area. Salta I do not believe is an industrial area so progress is happening to get this set up
- Jerko has just returned from Argentina and is obviously working on formalising the JV agreement, registering the business in Argentina, set up offices etc. The project seams ready to go, the relationship with the vendors has gone from strength to strength and a great deal of trust has been built. Reading between the lines the signed agreement for the JV Company is imminent.
- Rincon has an area of 75Ha, obviously this is small and only good for a pilot plant if that. Again the feeling I get and my opinion is that obviously not enough land to get this to a full blown commercial scale plant, an expansion of 75Ha is an obvious. There are deals aplenty in the area and with our in-country experts having the reputation and connections, no doubt further acquisitions are on the cards. Billyen had raised this within an earlier post and I agree, I smell something brewing
- Timeframes stage 1 proof of concept within 12 months. Stage 2, requires a further 12.
In summary, once demonstrated something that works, LCE produced (I believe well within 12 months), and the Asian connections our chairmen has in Asia, its party time
Positos: Only received permits, currently reviewing historic data to develop the best strategy moving forward.
Mina Teresa: experiencing Juay Juay province regulatory issues. AGY are not the only ones having difficulties obtaining permits. Other juniors as well as Orocobre are facing the same delays with this province. Timeline to a JORC resource cannot be provided as it is in the hands of bureaucrats
Timeframes; Immediate activities over the next month that I could gather;
- Execute Definitive JV Agreement on Rincon
- Works Program and budget for Rincon Stage 1
- Start test works on Rincon within next month or two
PR / Marketing
- A good discussion on marketing. It has been recognised and expect a change. Discussions with Brokers in Australia and abroad has commenced, will probably see AGY market research papers also appearing soon
- Alex was on other commitments in UK which was scheduled prior to this GM. It was noted he would be appearing on CNBC. Obviously for PDN, maybe lithium may creep into the interview
Billyen, Quanta, GC hopefully the queries had have been captured above
(20min delay)