The Argosy Minerals Ltd [ASX:AGY] updated investors on progress made at its Rincon Lithium Project in Salta Province, Argentina.
AGY reported 45% of the total works are completed for the development of the modular 2,000tpa lithium carbonate production operation.
Argosy said it is on schedule to achieve first commercial production of >99.5% battery quality lithium carbonate product from mid-2022.
Argosy Minerals Ltd [ASX:AGY] shares were somewhat muted in response, up 1.7%.
The AGY stock is now up 480% over the last 12 months.
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AGY provides operational update
The project’s major works are divided into three phases — design, construction, and commissioning.
According to Argosy, the design phase, which includes engineering layout, is effectively complete.
The construction phase is 44% complete while plant commissioning works are 9% complete.
AGY said the construction phase is progressing on schedule and on budget, with:
- ‘99% of earthworks/land movements completed
- ‘86% of site works completed (comprising site camp/accommodation, laboratory, office, and other works)
- ‘73% of the brine system completed (comprising pumping station and plant settling ponds works);
- ‘32% of the process plant completed (comprising plant equipment acquisition and plant warehouse works)
- ‘33% of utilities and associated services (comprising vapor system, communication system and ancillary services works).’
AGY share price outlook
Argosy noted the construction phase remains on schedule for completion during April 2022.
Plant commissioning works, production test-works, and ramp-up will follow ‘immediately thereafter’.
AGY said site works are already increasing and expects ‘significant advancement to be made over 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.
‘With lithium market sentiment and lithium carbonate prices maintaining strength, we are excited as we escalate works in transforming Argosy into a battery quality lithium carbonate producer and cashflow generator, and then to further progress the 10,000tpa project development expansion.
‘We look forward to a significant near-term growth phase from the increasing development activity at our Rincon Lithium Project.’
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