Argosy Minerals Limited (ASX:AGY) continues to progress towards commercial development of the Rincon Lithium Project in Argentina with next stage development permitting applications being submitted.
The company has advanced the approvals process by preparing necessary regulatory documents and permitting applications for authorities in the Salta Province Mines Department.
Seeking approvals for plant
These outline development of an initial 2,000 tonnes per annum commercial operation module lithium carbonate processing plant and associated operations at the project site in the country’s prolific ‘Lithium Triangle’.
In addition, company executives have discussed with regulatory officials the prospect of advancing the project direct to a 10,000-tonne scale development and the associated approvals requirements.
Argosy is also progressing the process of product specification customer acceptance following product test samples being provided to preferred potential Asian customers.
The company’s development strategy enables direct engagement with potential customers owing to it being able to provide lithium carbonate (LCE) samples from the stage I industrial-scale pilot plant operations.
Initial LCE produced from the stage I pilot plant.
Strategic investment process takes priority
As such, Argosy has prioritised its attention to the strategic investment process and resulting potential capex finance solution for full commercial-scale development of the project.
Argosy is one of the first new LCE product suppliers to be able to follow this path, which reinforces the strong position the company is in to establish its credentials well before many other lithium companies.
Ongoing processing works at the stage I pilot plant continue to generate a build-up of LCE product for further customer sample verification and testing.
This will also result in preparation for production of LCE product for potential stage I offtake requirements.
LCE samples ready to be sent to potential end-users.
Potential complementary pathway
Due to this ongoing work, the company has also received interest from a large Korean battery manufacturer to prepare high-purity lithium hydroxide samples.
With some of the LCE produced from the pilot plant coupled with its processing expertise, Argosy can prepare lithium hydroxide customer samples from its in-house laboratory.
This also provides the company with a potential complementary production pathway.
Meetings have also been held with a consortium of South Korean groups to consider potential strategic partnership arrangements for commercial-scale long-term product off-take and accompanying capex funding solution.
Independently, the company is moving toward closing an offtake arrangement for stage I product with a Japanese group.
Argosy managing director Jerko Zuvela said: “The recent works progress and meetings in South Korea and Japan with well-credentialed and strategic groups confirms the very positive feedback the company has received on its Rincon development strategy and lithium processing works achieved to date.
“This has put Argosy in a strong position to secure a key strategic relationship and interest for the potential full commercial-scale development of the Rincon Lithium Project.”
The company is continuing to pump lithium brine into the constructed evaporation ponds on site.
This allows the lithium brine concentration process to continue and build up the lithium brine concentrate feedstock for future lithium processing works.
Lining of the final evaporation ponds will be completed during the June quarter.