The Argosy Minerals Ltd (ASX: AGY) share price is sliding on Wednesday morning despite a positive update from the company.
At the time of writing, the lithium miner's shares are down 1.82% to 16.2 cents apiece.
What did Argosy announce?
A catalyst for the Argosy share price being dragged down may be overall weak market sentiment on the ASX today. The All Ordinaries Index (ASX: XAO) is heavily retreating, down 1.13% to 7,495.6 points at the time of writing.
In today's statement, Argosy advised it has completed interpretation and analysis of the magnetotelluric (MT) resistivity survey data for its Tonopah Lithium Project in the US state of Nevada.
The company hired the services of a Perth-based MT specialist geophysical consultant to identify potential brine targets within the area.
Modelling works found a major conductive anomaly which is being interpreted as a possible lithium brine aquifer. The depth to the top of this feature varies between 300 metres to 700 metres.
Argosy noted that the main anomaly contains three MT targets that may define a closed basin and hold lithium brine deposits. The targets will require drill testing, however, to the deepest hole of up to 1,500 metres.
As such, the company will consider further exploration programs before moving to the next stage of drilling.
Argosy managing director Jerko Zuvela commented:
The geophysical works conducted at Tonopah have succeeded in delineating lithium brine targets within our project area. We now look forward to progressing works to realise the potential of our strategic project in an established tier 1 mining region.
The significant impetus for local lithium supply in the USA has become critical, and out Tonopah Lithium Project is in prime position and enhances Argosy's value to all strategic groups across the battery and EV industry supply chain.
Argosy share price summary
Over the past 12 months, Argosy shares have gradually trekked higher to post a gain of more than 200%. Year-to-date has also been impressive with its shares more than doubling in value.
Based on today's price, Argosy commands a market capitalisation of roughly $206.3 million and has approximately 1.25 billion shares outstanding.
