The Argosy Minerals Limited (ASX: AGY) share price is edging higher on Thursday following a positive update from the company.
At the time of writing, the lithium miner's shares are up 1.30% to 39 cents.
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What did Argosy announce?
In today's statement, Argosy advised it has received regulatory approval of its Environmental Impact Assessment (EIA) report.
This allows the company to conduct resource expansion exploration and production well drilling works at the Rincon Lithium Project.
As such, focus will be on increasing the current JORC Indicated Mineral Resource estimate by targeting the defined exploration target.
It is estimated that 262,000 tonnes to 479,000 tonnes of lithium carbonate are currently below the ground level.
Together, the JORC Indicated Mineral Resource and Exploration Target estimate a potential 507,000 tonnes to 724,000 tonnes of lithium carbonate.
Argosy stated that production well drilling works will commence later this year in facilitating the preparation of a Mineral Reserve Estimate. This will follow the subsequent completion of the Feasibility Study.
Exploration drilling will focus on confirming the geology, yield and brine grade over the depths of up to 300 metres.
Argosy managing director, Jerko Zuvela commented:
This is another significant milestone for the Rincon Lithium Project and provides further support to realise the substantial resource expansion potential upside that exists below the shallow-depth current Indicated Mineral Resource.
In addition, advancing works toward a maiden reserve estimate and then feasibility study for the planned larger scale operation greatly enhances the long-term viability and status of our project.
Argosy share price summary
Over the past 12 months, Argosy shares have stormed 105% higher, with year to date up 22% so far.
Based on today's price, Argosy commands a market capitalisation of roughly $502.36 million and has approximately 1.29 billion shares outstanding.
