Argosy Minerals Limited (ASX:AGY) expects to produce its first battery-grade lithium carbonate by the end of May from an industrial-scale pilot plant at the Rincon Lithium Project in Argentina.
Stage I processing test work is continuing following commissioning of the plant near the project in the Lithium Triangle in Salta province.
This intricate work involves a number of complex chemical reaction stages within the plant that require tweaking at each stage to ensure the chemical pathway is accurate.
READ: Argosy Minerals starts operations at lithium pilot plant in Argentina
It also ensures the removal of appropriate deleterious elements to be able to produce the final battery-grade lithium carbonate (LCE) product.
Managing director Jerko Zuvela said: “The company is hastened to deliver on our key stage I objective of producing battery-grade LCE product, and recognise the minor delay in achieving this significant milestone.
“Considering the industrial scale and transformational nature of such an achievement, I feel it is imperative to ensure these works are conducted in a methodical and meticulous process.”
READ: Argosy Minerals fast tracks Rincon Lithium Project to take advantage of lithium carbonate pricing
The aim of the test work is to produce consistent battery-grade LCE product for all development stages as well as to provide customer samples for subsequent initial commercial sales and future sales agreements.
Zuvela added: “The processing works are highly technical and critical to ensure ultimate success, as the stage I flow sheet will be ‘scaled up’ for later stages.
“Therefore, it is imperative that we demonstrate the right product quality on a scalable and cost competitive basis.
“As such, we are targeting completion of stage I processing test-works and LCE product delivery by the end of May, and become the next ASX-listed LCE producer.”
Argosy also expects to deliver a maiden JORC resource estimate for the Rincon project by the end of May.
An eight-hole resource exploration drilling program has been completed and outstanding laboratory analysis results are expected this week.
After conducting a final review, resource estimate and modelling works will be carried out to deliver the maiden resource.
Additional diamond drill holes
Argosy has started three additional exploration diamond drill holes as part of work for a preliminary economic assessment (PEA) with the first hole completed to a depth of 100.5 metres.
The aim of the extra holes is to include more material in the indicated category for an updated resource estimate in conjunction with the PEA.
Completing title acquisitions
In addition, the company has started the legal process to purchase mining titles secured via binding and exclusive option rights.
If the purchase options over the Salonix properties, Mina Reina and Mina Tincal are secured, the Rincon project’s land area would comprise 2,572.9 hectares.
Argosy is also progressing preliminary offtake arrangements for stage I product as well as working towards arranging potential medium and long-term offtake agreements.