Argosy Minerals Limited (ASX:AGY) has received positive preliminary analytical results from drilling at its Rincon Lithium Project in the “Lithium Triangle” in Salta Province, Argentina.
The company is conducting two concurrent phases of drilling - production well drilling for pumping of lithium brine into the stage 2 evaporation ponds and resource exploration drilling.
Three exploration diamond drill-holes have been completed to a depth of 102.5 metres to date:
- Results from the first drill-hole averaged 487 milligram/litre lithium in three samples from 82- 100 metres, with average magnesium/lithium ratio of 4.3;
- the second drill-hole averaged 385 milligram/litre lithium over the length of the hole, with average magnesium/lithium ratio of 7.6; and
- the third drill-hole was recently completed and samples are en-route to the laboratory for analysis.
Jerko Zuvela, managing director, commented “The exploration diamond drilling program is exceeding our expectations with deeper drilling confirming greater brine bearing thickness than previously assumed.
“Initial analytical results to date confirm lithium brine grade varies in the general range of 400 to near 500 milligram/litre lithium, with a magnesium/lithium ratio lower than historical reference data.
“Confirmation of a thick sequence of black sand in the project area is also very good news for future brine extraction.
“These initial results further validate Argosy’s aggressive development strategy to fast-track toward production of LCE (lithium carbonate equivalent) product.”
It is expected that the lithium brine from the pumping tests will be pumped directly into the Stage 2 evaporation ponds, taking advantage of the 2017/18 summer peak evaporation season to produce lithium brine concentrate.
Stage 2 evaporation pond construction works are nearing completion.
Argosy’s objective is to drill circa three production wells for pumping of lithium brine into the evaporation ponds and complete the exploration diamond drilling works to delineate a resource.