Argosy Minerals Limited (ASX:AGY) has completed the next stage of its Rincon Lithium Project in Argentina’s ‘Lithium Triangle’ with further lithium brine evaporation ponds constructed.
The company has completed a total of about 38 hectares of evaporation ponds and lithium brine is being pumped into the new ponds.
Along with the existing ponds, these are expected to provide the capacity to cater for a modular/staged commercial operation.
The total pond area is capable of generating concentrated lithium brine at a scale that can support processing operations for annual plant capacity of around 1,500 to 2,000 tonnes of lithium carbonate (LCE).
Argosy managing director Jerko Zuvela said: “Argosy continues to accomplish significant development milestones as we continue our aggressive development strategy and progress toward becoming a commercial-scale LCE producer in the near-term.
“Together with the PEA outcomes recently announced and the completion of this scale of evaporation ponds, the company is targeting developing the commercial stage of operations as quickly as possible.”
Lithium brine concentrated from previously constructed ponds is available for processing operations in the stage I industrial-scale pilot plant.
Argosy has filled one of the new large ponds with lithium brine and the other two larger ponds are expected to be filled this month.
The remaining smaller ponds to be utilised for storing concentrated brine from larger ponds in the latter stages of the lithium brine concentration period of about 12 months, are planned for lining next month.
Two stages completed
These new ponds increase the total brine volume capacity, joining the existing evaporation ponds that have been fully operational for solar evaporation and lithium concentration for the past 12 months.
This work completes pond construction development for stage I and the previously referred stage II works.
Argosy will determine the next phase of evaporation pond construction work after deciding on a preferred production strategy.
This will be to pursue construction of a commercial scale processing plant (10,000tpa LCE) immediately, pending funding, or a modular/staged production strategy toward full commercial scale, as stated in the PEA.
The company is focusing on concluding a preliminary offtake arrangement for stage I product, subject to confirmation of customer testing and product customisation.
With PEA results being reviewed by potential offtake and/or strategic investor groups, Argosy will also pursue advanced discussions for full commercial or modular scale capex funding/investment.
Pending funding, the preferred production strategy would then be decided.
The company’s fast-track development strategy has put it in the position of producing LCE product from the stage 1 industrial-scale pilot plant.
Along with the confirmation of strong economics provided in the PEA, the company is also well placed to attract interest from leading battery and cathode industry participants.
Argosy is committed to building a sustainable lithium production company, highly leveraged to the forecast growth in the lithium-ion battery sector.