Argosy Minerals Limited (ASX:AGY) has demonstrated that the chemical process developed to produce battery-quality lithium carbonate (LCE) from its Rincon project in Argentina is successful and scalable.
Processing works at the stage I plant have achieved battery-quality LCE product with a 99.8% Li2CO3 content value.
The company and its JV partner consider that this result is a key strategic component of the principal stage I milestone of producing consistent ongoing battery-quality LCE product.
Investors also responded with shares increasing almost 27% to an intra-day high of 26 cents.
Argosy managing director Jerko Zuvela said, “We are delighted at this significant milestone – proof of concept achieved via a successful and scalable chemical process solution.
“This ultimately sets up the company for progress towards the development of stage III at the Rincon Lithium Project.”
Battery-quality LCE product from the Rincon project.
Fast-track development strategy
The results further establish that Argosy is delivering on its fast-track lithium development strategy.
They provide additional options for Argosy to consider accelerating the scale-up development timeframe of the project.
Zuvela said, “We look forward to delivering our upcoming major upcoming milestones to shareholders to show the long-term sustainability of our project.”
The milestone has been achieved through a lengthy process test work phase, which continued after production of the initial battery-quality LCE product.
Process works have produced around 1.2 tonnes of primary/raw lithium carbonate material that has been used for test works and product refinement.
It resulted in the production of about 175 kilograms of battery-quality LCE, which when tested in-house, recorded the 99.8% Li2CO3 content value.
The stage I plant has produced battery-quality lithium carbonate
Argosy’s intention was to produce a better specification LCE product to provide customer samples to its preferred potential offtake party.
The company is preparing representative samples totalling about 70 kilograms with an average specification of 99.7% Li2CO3 content value.
Site visit and inspection
These will be provided to the preferred offtaker, which recently conducted a project visit and inspection, for their own quality confirmation and verification.
Pending customer acceptance of product specification, Argosy will look to finalise the preliminary offtake agreement for stage I product.
The company is continuing process works to ensure plant equipment efficiencies are optimised to complete the final stage I milestone - to produce consistent ongoing battery-quality LCE product.
Complementary equipment identified
Argosy has identified complementary plant equipment to assist in gaining more efficient product output and will be implementing this as necessary over coming months.
The company remains confident of achieving key upcoming milestones to further demonstrate the long-term sustainability of the Rincon project.