- Argosy Minerals (AGY) has completed 15 per cent of the construction of its 2000-tonne-per-annum (tpa) lithium carbonate operation in Argentina
- The plant is located at Argosy’s Rincon Lithium Project within the Salta Province and remains on track for completion early next year
- AGY is eyeing first commercial production by mid-2022 and will ramp up onsite activities over the next four months
- The company is focussed on securing offtake agreements for its 2000tpa and 10,000tpa operations, noting increasingly favourable market conditions
- Meanwhile, AGY has been busy progressing exploration at its Tonopah Lithium Project in the U.S. state of Nevada
- Argosy shares are up 1.15 per cent, trading at 8.8 cents each
Argosy Minerals (AGY) has completed 15 per cent of the construction of its modular 2000-tonne-per-annum (tpa) lithium carbonate operation in Argentina.
The plant is located at Argosy’s Rincon Lithium Project within the Salta Province and remains on track for completion early next year.
Eyeing its first commercial production battery-quality lithium carbonate by mid-2022, the company is set to ramp up activities, including plant commissioning and test-works, over the next four months.
Meanwhile, AGY is continuing discussions with several groups in an effort to secure satisfactory offtake arrangements for its 2000tpa and 10,000tpa operations.
The company is aiming to link these as an incentive for strategic investment of a 10,000tpa capex funding solution.
Noting rising lithium prices and a tightening of supply and demand, the company anticipates market conditions surrounding potential agreement terms will continue to improve in the lead up to its targeted production start date.
Argosy Minerals Managing Director Jerko Zuvela commented on the prospective offtake agreements.
“With lithium market sentiment and lithium carbonate prices increasing considerably during 2021, and the company being fully-funded to 2000tpa-scale production, Argosy remains a lithium sector peer leader that is the only new developer able to supply battery quality lithium carbonate product from our Rincon Lithium Project in the near-term,” Jerko said.
“This enhances Argosy’s strategic value to all end-user customers across the battery and electric vehicle industry supply chain, and being well positioned to consider our preferred strategic partners, investment and offtake arrangements as we progress toward cashflow generation and commercial scale development.”
AGY says JORC exploration target planning is also in progress at Rincon to delineate the potential for material expansion of the current indicated resource, as well as increase the project’s mine life.
Puna operations ramp up
Meanwhile, the company has ramped up its Puna operations team at the project, appointing additional industrial and mechanical engineers, as well as a chemical analyst and other corporate personnel.
Argosy anticipates a workforce of roughly 100 staff upon commencement of the 2000tpa operations and remains committed to employing locally.
Tonopah Lithium Project
Elsewhere, AGY has been busy progressing exploration at its Tonopah Lithium Project in the U.S. state of Nevada.
The exploration follows a review of geophysical gravity data, which has identified lithium brine trap targets potentially containing accumulated concentrated lithium brine.
AGY is planning follow-up magnetotelluric resistivity surveying at the site to locate possible targets, consider potential drilling works and determine lithium brine prospectively in the area.
Argosy shares are up 1.15 per cent, trading at 8.8 cents at 10:42 am AEST.