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- Argosy Minerals (AGY) advances construction works at its flagship Rincon lithium project in Argentina over the March quarter
- Total construction works reached 67 per cent completion at the end of the period, and is reportedly on track for first production of lithium carbonate from mid-2022
- Argosy Minerals is also progressing a seismic survey to explore lithium brine targets at the Tonopah project in Nevada
- The company ended the quarter with a cash balance of $38.3 million and will continue focusing on ticking off milestones at both assets
- Argosy shares are up 4.6 per cent to trade at 45.5 cents
Argosy Minerals (AGY) said it has achieved milestones during the March quarter as it advanced its development strategy and planning at the Rincon and Tonopah projects.
Rincon Lithium Project
The lithium exploration company kicked off the new year by hitting the half-way mark of construction at the Rincon lithium project in Argentina.
The major works for the 2000 tonnes per annum (tpa) operation are divided into the design, construction, and commissioning phases, with the design phase now complete.
By the end of the quarter, total construction works were 67 per cent complete and will be followed by the completion of plant commissioning and production testwork.
At this stage, Argosy believes it’s on track to achieve first production of a battery-quality lithium carbonate product from mid-2022.
The company said it’s progressing an environmental impact assessment approvals process to develop an additional 10,000tpa operation to support the 2000tpa capacity that’s currently under construction.
Due to the 2000tpa operation being fully funded, the company said it has financial flexibility to consider strategic investments and off-take proposals to support future project expansion beyond the next stage 12,000tpa capacity.
The ‘robust’ lithium market and surging prices have reportedly sparked an increased interest to invest in the Rincon project, which lies within the world renowned “Lithium Triangle”.
Tonopah Lithium Project
Argosy Minerals’ Tonopah project is located near Albemarle’s Silver Peak operation in the US state of Nevada.
Since the completion of successful survey work in 2021, the company has been progressing exploration plans with a focus on three magnetotelluric targets, which may have potential for lithium brines.
These plans include a seismic survey which is currently underway and will help with determining priority drill targets.
Argosy believes the Tonopah project represents a strategic opportunity to become a world-class lithium producer and cement its position within the US critical minerals supply chains.
Financials
Argosy burnt through $494,000 on operating activities and $3.5 million on investing activities. The company generated $19.3 million on financing activities through the exercise of options, and ended the March quarter with $38.3 million in cash and no debt.
Outlook
In the current quarter, Argosy said its focus is on continuing construction works at Rincon, and formalising a strategic investment for the 10,000tpa expansion and lithium carbonate product offtake. It will also look to progress resource expansion and feasibility works, and continue exploration at the Tonopah lithium project.
Argosy was up 4.6 per cent to trade at 45.5 cents at 11:45 am AEST.
