The Argosy Minerals Ltd [ASX:AGY] announced 40% of the total work is now completed for the development of the modular 2,000 tonnes per annum (tpa) lithium carbonate production operation.
According to AGY they’re also on track to achieve first commercial production of >99.5% battery quality lithium carbonate product from mid-2022.
Today’s update came after the company confirmed lithium brine targets at Tonopah.
Two days ago, Argosy confirmed three magnetotelluric (MT) targets that are prospective for lithium brine accumulation at the Tonopah Lithium Project in Nevada, US.
While these are both significant milestones for the company, the AGY share price, however, is down for the day.
Argosy Minerals Ltd [ASX:AGY] share price are currently trading at 19.3 cents per share, down 6.1% at the time of writing:
Like many other lithium stocks, AGY is up big. Nearly 300% in the last 12 months.
Rincon Lithium Project operational update
The 2,000 tpa production operation consists of three main phases: design, construction, and commissioning.
The design phase stands at 99% completion, while the construction phase is at 36% completion. The plant commissioning works, comprising raw materials acquisitions, and tender works are 7% complete.
Under the construction phase, the company notes that 97% of earthworks/land movements are completed, with 78% of the site works completed.
Moreover, the brine system is 67% completed, the process plant stands at 19% completion, while 33% of utilities and associated services are completed.
The company notes that the construction phase is on schedule for completion during April 2022.
Moreover, the plant commissioning works, production test-works and ramp-up will follow immediately afterwards.
Other developments such as the construction works on the industrial shed housing the 2,000 tpa process plant have already commenced, and other site works will increase in the coming months.
Argosy Managing Director, Jerko Zuvela said:
‘The Company’s Puna operations team continue making significant progress on construction and development works, toward commencing 2,000tpa lithium carbonate production operations at our Rincon Project.
‘We look forward to a significant near-term growth phase from the increasing development activity at our Rincon Lithium Project.’
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What’s next for the AGY Share Price?
Argosy Mineral announced a major conductive anomaly recently, which they believe is a potential lithium brine aquifer, with depth to the top of the feature varying between 300–700 meters.
Jerko Zuvela said:
‘The significant impetus for local lithium supply in the USA has become critical, and our Tonopah Lithium Project is in prime position and enhances Argosy’s value to all strategic groups across the battery and EV industry supply chain.’
The company notes that it’s progressing toward successfully developing the modular 2,000tpa operation and becoming a commercial battery quality Li2CO3 producer.
The next stages will be closely observed by investors as they will focus on plant equipment sourcing and plant warehouse construction works.
The site works are expected to ‘considerably’ increase during this period and this will confirm major progress and significant advancement at the project.
The next step for the company would be expansion, as Jerko Zuvela says:
‘With lithium market sentiment and lithium carbonate prices continuing to strengthen, we are excited as we escalate works to transform Argosy into a battery quality lithium carbonate producer and cashflow generator, and then to further progress the 10,000tpa project development expansion.’
AGY’s location in Nevada is important as the US pushes hard at EVs under the Biden administration, with the current US$3.5 trillion infrastructure bill in Congress earmarking significant amounts of funds for EV charging stations.
If you’re looking for more lithium stocks,
It profiles three stocks, including a speculative explorer with a prime patch of real estate in WA.
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