The Argosy Minerals Limited (ASX: AGY) share price is surging today following an update on its Rincon Lithium Project. At the time of writing, the lithium miner's shares are up 9%, trading at 11.5 cents.
Let's take a closer look and see what Argosy reported to the ASX market this morning.
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Developments works schedule
The Argosy share price is on the rise after the company gave investors a clearer picture of its plans for the Rincon project.
In today's release, Argosy provided a development works schedule for project construction. The timetable outlines the production phase to mine 2,000 tonnes per annum of lithium carbonate from late in the second quarter of FY22.
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 lithium production source.
The company advised that it has prepared a detailed construction and development schedule to build the lithium carbonate process plant. This will involve major works consisting of earth-moving equipment and site construction of the plant as well as associated installations.
In addition, Argosy will expand the brine system to include a pumping station and plant settling ponds. The entire build stages will run throughout the current calendar year, with completion around early 2022.
Once the construction phase is finished, Argosy will begin plant commissioning, test-works, and ramp-up over a 4-month period. Should everything go smoothly, the company will then start production operations.
Comments from the managing director
Argosy managing director Jerko Zuvela touched on the company's 2022 target, saying:
The company's Puna operations team have prepared a comprehensive and detailed work schedule and associated timeframe for targeted production of >99.5% battery quality lithium carbonate product.
We are fully funded to transform Argosy into an exclusive producer and cash flow generator, and are completely focussed on achieving this target and establishing the pathway for continued commercial scale development, as we become only the second ASX-listed battery quality lithium carbonate producer. We look forward to a significant near-term growth phase with increasing development activity at the Rincon Lithium Project.
The Argosy share price has gained more than 90% over the past 12 months.
