Western Australia’s Argosy Minerals Limited (ASX: AGY) got the green light from Argentine officials to expand its lithium carbonate operation by 500 per cent this week.
The Salta government and the country’s mining secretary authorized Argosy’s environmental impact assessment for the 10,000 tonne per annum expansion of its Rincon Lithium Project.
“This is a significant milestone,” Managing Director Jerko Zuvela said. “I thank our team for such an achievement and we look forward to making more progress.”
Argosy will now be progressing with pre-development engineering work for the expansion prior to a final investment decision. The company is seeking strategic investment partners.
Furthermore, the ASX-listed operator is currently working to secure renewable energy sources to power its operation.
The site is estimated to hold over 606,000 tonnes of indicated lithium carbonate at an average grade of 326 milligrams per litre.
As of February, Argosy had a cash balance of C$12.3 million and no debt.
Map: Argosy Minerals
Read more: Lithium South expands well installation program at Hombre Muerto North
Read more: Lithium South explores alternative production methods at Hombre Muerto North
Neighbouring operators pioneer lithium carbonate production
A short distance south of Rincon, Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) recently started producing a bulk lithium carbonate product at its Hombre Muerto North project. Success at the site has prompted the company to expand its well installation program significantly.
The area where Argosy and Lithium South operate is a hotbed for major mining companies like Posco Holdings Inc (KRX: 005490), Arcadium Lithium plc (NYSE: ALTM), Eramet S.A. (EPA: ERA), Lithium Americas (Argentina) Corp. (TSX: LAAC) and Ganfeng Lithium (SHE: 002460).
Map: Argosy Minerals
In May 2022, Argentina’s government committed to investing up to US$4.2 billion in the nation’s lithium industry by 2025.
Between 2016 and 2021, Australian companies like Argosy invested an aggregate C$890 million into the Argentine lithium sector.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
