Ann: Argosy Secures Lithium Project, page-2

ARGOSY SECURES LITHIUM PROJECT
HOA gives Argosy two-year option period to purchase Mt Paris Lithium Project
Targeting Cinovec-style lithium deposit
Extensive greisen field, prospective for lithium mineralisation
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Argosy Minerals Limited (ASX: AGY) (“Argosy” or “Company”) is pleased to announce that it
has executed a Heads of Agreement (HOA) with Geotech International Pty Ltd
(“Geotech”), granting the Company a two-year option period to purchase the Mt Paris
Lithium Project in Tasmania.
Argosy believes the HOA to be the first step in entering the lithium sector, with additional
project acquisition discussions on-going. The acquisition is consistent with the Company’s
strategy of enhancing its project portfolio, which will continue with a particular focus on
quality precious metals, new technology and agriculture related mineral projects, to
increase the overall value proposition of AGY.
The Mt Paris Lithium Project (“Project”) comprises one granted exploration licence covering
an area of 115km², located approximately 60km northeast of Launceston with access via
the sealed Tasman Highway.
The Project targets lithium mineralisation within the extensive greisen swarms located within
the exploration licence. Previous explorers, all targeting tin mineralisation, classified the hard
rock deposits into quartz-greisen veins, stanniferous greisen lodes surrounded by zones of
kaolinite-altered granite, and flat-lying greisen sheets, which are all associated with the
undulating granite roof-zone/cupola. The greisens and associated pegmatites are
prospective for lithium micas (zinnwaldite), lithium pyroxene (spodumene) and lithium clays
(hectorite).
The Company considers the Mt Paris Project may have an analogous geological setting to
the Cinovec Project (owned by ASX-listed European Metals Holdings Limited) – Europe’s
largest lithium deposit. Cinovec is a pervasively altered and greisenised lithium-albite granite
(with quartz, topaz, zinnwaldite and cassiterite), occuring in the upper part of a cupola,
(European Metals, 2016).
Records from the Mineral Resources of Tasmania (MRT) Rockchem database provides
analytical results from historic sampling of the granites, with lithium values up to 315ppm,
indicating the presence of zinnwaldite in the granite. The Company will target the more
evolved greisens, which are expected to contain significantly more quantities of lithium
micas. Additional historic records of the greisens containing lithium mineralisation within the
Project, at the Mt Paris Mine area, noted there are “greisen veins, consisting essentially of
quartz and lithia mica in varying proportions”.
ASX ANNOUNCEMENT
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Argosy Minerals Limited
ACN 073 391 189
Level 1, 12 Kings Park Road, West Perth, WA 6005
PO Box 44, West Perth, WA 6872
Ph: (08) 9226 4500 Fax: (08) 9226 4300
The largest single known body of greisen in the Project area is at the Mt Paris Mine (located
at Mt Terror), with its dimensions proven by surface mapping and drilling by Union Corp (a
cross section of the mineralisation is shown in Figure 1), whilst the best known swarm of
greisen veins within the Project appears to be at Rattler Hill. No previous exploration works
targeting lithium have been conducted at these sites.
Figure 1. Mt Paris Mine cross section (after Winnall 1981). Drill holes are 100m depth.
The Company’s near-term strategy to advance the Project is:
Conduct preliminary exploration works targeting the greisens at Mt Paris Mine (Mt
Terror) and Rattler Hill to test for lithium; and
Collect, re-log and analyse the historic samples of drill cores from the Project area
stored at the MRT core library in Hobart for lithium.
The Company considers the Project to be highly prospective for lithium mineralisation, given
the presence of fertile greisens and the indication of lithium mineralisation within those
greisens and background granites, a similar geological setting to the Cinovec lithium
deposit, and that no previous lithium exploration has been conducted within the Project.
Summary Terms of the Heads of Agreement
Argosy has executed the Heads of Agreement with Geotech whereby Argosy agrees to
accept an option to purchase 100% equity in the Mt Paris Project – Exploration Licence
19/2014.
The key terms of the Agreement are;
Argosy shall be granted an Option for a period of two (2) years to purchase, at any
time during those two years, 100% of the Project for A$250,000 plus GST.
ASX ANNOUNCEMENT
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Argosy Minerals Limited
ACN 073 391 189
Level 1, 12 Kings Park Road, West Perth, WA 6005
PO Box 44, West Perth, WA 6872
Ph: (08) 9226 4500 Fax: (08) 9226 4300
Argosy shall make a non-refundable payment to Geotech of $8,500 cash plus GST as
the first year option fee.
Argosy will manage all exploration, development and mining activities at the Project.
If the HOA is still in force, a second year option fee of $15,000 plus GST will be paid on
the first anniversary date.
Argosy can elect to terminate the HOA prior to exercising the ‘Option to Purchase’
the Project.
Argosy Director, Jerko Zuvela said the option to acquire the lithium project represented a
very positive milestone and enforces the Company’s strategy to re-build its project portfolio.
“The Project is an ideal stepping-stone given its lithium prospectivity, for the Company to
pursue additional quality project opportunities and establish the Company to become a
significant explorer. We will now aim to prove the Project is robust and are excited about
further progress,” Mr Zuvela said.
ENDS