Argosy Minerals (ASX: AGY) has been given the green light to kick off construction of its remaining stage two lithium evaporation ponds at its flagship Rincon lithium project in Argentina.
The company has now received the final regulatory approvals needed to start building its additional eight evaporation ponds, which were planned under the stage two development.
Once the additional ponds have been completed, Argosy will have 34 hectares of lithium brine evaporation ponds in operation.
As part of the stage one development, Argosy is also finalising its pilot plant which will have the capacity to produce 500 tonnes per annum of lithium carbonate equivalent for the lithium-ion battery market.
First lithium carbonate is due next month.
“Argosy continues its rapid progress and aggressive development strategy towards becoming a lithium carbonate equivalent producer in the near-term and conducting the remaining stage two evaporation ponds work now shows the company’s commitment to scaling the project to the next stage and providing battery grade lithium carbonate equivalent product into the insatiable demand in the market place,” Argosy managing director Jerko Zuvela said.
There are currently more than 10 hectares of lithium brine ponds undergoing solar evaporation at the project in readiness to be fed through the pilot plant once it’s ready.
Argosy ups Rincon equity in readiness for next stage
Argosy managed to boost its farm-in stake ahead of schedule, locking in its 77.5% interest late last month.
The company hopes to secure up to 90% in the project after it completes stage three development at the project, which involves full scale production.
Meanwhile, a maiden JORC-compliant resource is due for release by the end of the month, with drilling providing assays up to almost 500 milligrams per litre of lithium.
Situated in Argentina’s Salta Province, Rincon comprises 2,561.9 hectares including the adjacent Mina Tincal tenements.
By late afternoon trade, Argosy’s share price was up almost 5% to A$0.345.