Argosy Minerals Limited (ASX:AGY) has completed Stage 2 evaporation pond construction works at its Rincon Lithium Project in Argentina to coincide with the completion of the first production well.
The production well is currently undergoing pump testing in preparation for lithium brine pumping into the Stage 2 evaporation ponds.
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Jerko Zuvela, managing director, said: “Argosy continues to accomplish significant development milestones to continue our aggressive development strategy to fast-track toward production of LCE product.”
Argosy’s shares were last trading circa 6% higher intra-day, at $0.25.
Stage 2 development works progressing
The fully constructed initial Stage 2 evaporation ponds cover an area of circa 10 hectares, which increases the company’s capacity for traditional solar evaporation processing of lithium brine.
Combined with the Stage 1 evaporation ponds already constructed – that have been continuously concentrating lithium brine since April – Argosy now has circa 11 hectares of fully constructed ponds.
The company is aiming for maximum capacity during the 2017/18 summer peak solar evaporation season to produce lithium brine concentrate for further processing.
The first lithium brine concentrate produced is expected to be available for processing through the Stage 1 plant, and targeted to produce first product by the end of the March 2018 Quarter.
Two concurrent phases of drilling operations
Argosy is conducting two concurrent phases of drilling operations: production well drilling with a rotary drill rig for pumping of lithium brine into the Stage 2 evaporation ponds, and resource exploration drilling with a diamond drill rig.
The first production well was recently completed to a depth of 108 metres, with a pump installed and is now undergoing pump test-works to determine flow rates for on-going lithium brine pumping.
Importantly, preliminary flow rate testing has indicated very positive results, which the company will further validate.
Argosy is aiming to commence lithium brine pumping from the production well into the initial Stage 2 evaporation ponds imminently, with the company currently installing piping for this.
Diamond drilling results awaited
Resource exploration diamond drilling works are continuing, with a total of eight diamond drill-holes planned.
READ: Argosy Minerals confirms initial positive lithium drill results in Argentina
Four diamond drill-holes have been completed, with the company awaiting results for the two most recent drill-holes.
Argosy’s aim is to delineate a JORC-compliant resource in early 2018.