The Argosy Minerals Limited (ASX: AGY) share price is losing ground today. This comes despite the company updating the market with its expansion development plans for the Rincon Lithium Project.
During late afternoon trade, the lithium miner's shares are down 4.5%, trading at 10.5 cents.
Argosy Minerals is a mining and exploration company with a 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina. The company also operates the Tonopah Lithium Project in Nevada, USA.
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What did Argosy announce?
The Argosy share price is in the red today regardless of its positive update to investors.
In its release, Argosy advised that it has conducted preliminary works to start drilling operations at the Rincon Project. The program will seek to increase the current Joint Ore Reserves Committee (JORC) indicated mineral resource estimate conducted in 2018.
The company believes that there is between 262,000 tonnes to 479,000 tonnes of lithium carbonate underground. This is based on an average grade of 315 milligrams and 327 milligrams per litre, from 102.5 metres and 300 metres below the surface.
Argosy will diamond drill 6 holes to a depth of 300 metres and another drill hole up to 150 metres. Detailed geological logging will follow with the collection of samples sent to a laboratory for analysis.
Should the results yield an increased resource estimate, this could extend the project mine life and boost future production capacity.
Words from the managing director
Argosy managing director Jerko Zuvela commented:
We are excited with the increasing development activities occurring at the Rincon Lithium Project and look forward to an exciting near-term growth phase.
We expect the drilling results will outline the substantial upside that exists below the shallow- depth current JORC Indicated Mineral Resource estimate and provide further support for our planned 10,000tpa commercial scale development at Rincon.
Argosy share price review
Over the past 12 months, the Argosy share price has climbed almost 80%, with a 31% increase year-to-date. The company's shares are performing relatively well in 2021 due to renewed investor confidence in the lithium market space.
Based on the current share price, Argosy commands a market capitalisation of more than $137 million.
