12:00 13 Mar 2017
Argosy is completing its Stage 1 work schedule at Rincon to earn 50%.
http://www.*.com.au/thumbs/upload/Article/Image/2017_03/757z468_argosy-minerals_rincon-lithium-project---management-team-757.jpg
Argosy team
Argosy Minerals (ASX:AGY) has been in discussions regarding the potential to consider investment to fast-track the Stage 2 development of its Rincon Lithium Project in Argentina.
Rincon is held in a joint venture and is located in South America’s ‘lithium triangle’, which hosts the world’s largest lithium resources.
Argoys’s strategic advisor has recently held key meetings with several significant tier one strategic companies in the Chinese lithium battery sector.
Meetings have discussed fast-tracking project development, funding, off-take, partnership and other value-adding commercial agreements.
Argosy executives will hold meetings this week in China with several parties identified by its advisor to consider details of any potential propositions for the company.
Jerko Zuvela, managing director, commented: “We’re delighted with the substantial interest and the significance of those parties’ interest to assist Argosy fast-track development towards production of lithium carbonate equivalent product at the Rincon Lithium Project.”
Rincon Lithium Project
Argosy is earning up to a 90% interest in the Rincon joint venture lithium project located in Argentina.
The company plans to produce a laboratory scale quantity, targeting up to 150 tonnes of lithium carbonate equivalent (LCE) product from the project.
Argosy will earn a 50% interest by completing its proposed Stage 1 work schedule:
- Environmental studies and regulatory approvals/permits (December quarter 2016);
- Pond construction and associated works, including contractor tendering (March quarter 2017);
- Pond lining and associated works (June quarter 2017);
- Brine extraction, pumping, storage and transportation works (September quarter 2017);
- Pilot plant construction and test-work (December quarter 2017); and
- Pending success of the Stage 1 development, product LCE product (March quarter 2018).
Recent site visit feedback
Following a recent site visit to Rincon, Argosy is expecting, pending site conditions, that the initial construction works of two evaporation ponds will be completed by the end of March.
Once the ponds are fully completed, Argosy expects that pumping of lithium brine into the ponds for the evaporation process to then commence.
Additional evaporation ponds are currently being planned, including a works plan and equipment schedule, budget and timing for this work.
In the meantime, an industrial site has been identified where construction of the lab-scale pilot plant will be conducted.
Initially the company will refurbish this site prior to commencing pilot plant construction works later this year.
AGY Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
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