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Argosy Minerals to begin processing lithium brine concentrate from Argentine project

Published: 13:10 26 Mar 2018 AEDT

Lithium brine evaporation ponds at Rincon
Construction of additional stage II lithium brine evaporation ponds is underway

Argosy Minerals Limited (ASX:AGY) expects to start processing lithium brine concentrate this week from its Rincon Lithium Project in Argentina through a stage I pilot plant.

The company expects this will result in the first production of lithium carbonate (LCE) in the next few weeks.

Preparation for processing test work is almost complete and pending final checks and transportation of brine concentrate to the plant site, tests will start later this week.

READ: Argosy Minerals increases its stake in the Rincon Lithium Project

Managing director Jerko Zuvela said: “Argosy continues its fast-tracked development strategy and we are excited about the lithium processing test works and becoming an LCE producer.”

Initial lithium brine concentrate from Rincon’s stage I evaporation ponds will be delivered to the pilot plant at the industrial warehouse site.

Commissioning during April

Processing test works and pilot plant commissioning are expected to be carried out throughout April.

The works include fine-tuning the chemical balances, formulations and equipment settings to ensure consistent production of high-quality battery-grade LCE product.

Argosy’s Rincon personnel, headed by joint venture partner Pablo Alurralde, are working with maximum effort to achieve this milestone.

Samples for quality testing

Arrangements have been made with international cathode and battery industry participants to provide samples of battery-grade Rincon LCE for quality confirmation and testing.

These samples are expected to be delivered to Japan, Korea and China during April and May.

The Rincon project is in the Lithium Triangle of northern Argentina.

Argosy believes it will be able to execute potential medium and long-term offtake agreements with major industry participants after proving the project’s quality.

The company is finalising arrangements to sell surplus LCE produced during the test works.

“Our early-mover proof of concept and production strategy is realising enormous interest and potential long-term benefits given the insatiable demand in the international marketplace,” Zuvela said.

READ: Argosy Minerals secures approval for more lithium evaporation ponds in Argentina

The company has also started site works for the construction of about 24 hectares of extra stage II lithium brine evaporation ponds.

This will result in eight additional evaporation ponds to complement the nine operating stage II ponds.

Argosy will then have a combined total of about 34 hectares of stage II evaporation ponds.

The budget and timeframe for this work have been agreed with the contractor who completed the previous ponds.

Extra ponds for peak evaporation season

Argosy aims to have the extra ponds operational for peak solar evaporation and lithium concentration by the start of the upcoming summer season.

Independent consultants have been engaged to prepare a preliminary economic assessment (PEA) for the Rincon project and is encouraged by work to date.

As part of the PEA, Argosy has consulted with its independent consulting hydrogeologists and decided to conduct an additional two or three exploration diamond drill holes.

The aim of the extra holes is to include more material in the indicated category of the mineral resource estimate for the PEA.

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