The Argosy Minerals Limited (ASX: AGY) share price is surging today following an update on its Rincon Lithium Project.
Argosy holds a 77.5% interest in the Rincon project, located in Salta Province, Argentina. The mine is situated within the "lithium triangle" – the world's dominant source of lithium production.
At the time of writing, the lithium miner's shares are up 9.52%, trading at 11.5 cents.
Let's take a closer look at what Argosy reported to the ASX market this morning.
Developments works schedule
The Argosy share price is surging after investors were provided an update on the company's resource expansion planning works.
According to its release, Argosy is preparing to conduct a resource expansion drilling program to increase the current JORC Indicated Mineral Resource estimate at Rincon. The company is currently in discussions with several strategic groups on product off-take agreements and investment options. It hopes to expand the 2,000tpa (tonnes per annum) of lithium carbonate to a 10,000tpa project development.
Argosy is targeting to achieve the first commercial production of 2,000tpa of lithium carbonate product from late Q2 FY22.
The miner said the drilling program would target the defined Exploration Target estimate with an exploration drill-hole and testing program. However, before works proceed, the company will need to secure regulatory approvals. This is due to the environmental impact caused from deeper drilling.
The combined JORC Indicated Mineral Resource and Exploration Target estimates up to 507,000 tonnes to 724,000 tonnes of contained lithium carbonate at a depth of 300 metres.
Argosy stated that the planned works proving the Exploration Target estimat, could extend project mine life and future production capacity. Currently, the Rincon project has a mine-of-life of 16.5 years at a 10,000tpa production rate.
Management commentary
Argosy managing director Jerko Zuvela commented on the company's plans, saying:
Argosy is rapidly progressing toward commercial lithium carbonate production operations to provide the most significant critical raw material needed for the battery revolution, with development plans to quickly follow our 2,000tpa project with an additional 10,000tpa production expansion.
This places Argosy in an enviable position, becoming only the second ASX listed company and the next international battery quality lithium carbonate producer.
The Argosy share price has gained more than 110% in the last 12 months, with year-to-date up more than 40%.
