Argosy Minerals Limited’s (ASX: AGY) shares tumbled 4.0 percent on 13 November 2018, after announcing an upgraded JORC Code (2012) compliant Indicated Mineral Resource estimate for its Rincon Lithium Project, located in Salta Province, Argentina.
As per the company’s release, the Indicated Mineral Resource estimate contains 245,120 tonnes of lithium carbonate to a vertical depth of 102.5m. The company announced that the mineral resource estimate at its flagship Rincon lithium project has increased by 18 percent compared to the previous estimate. These new estimates were calculated from the results of 21 brine investigation holes drilled to depths of up to 147m in the southeast of the Salar Del Rincon.
According to the Company’s Managing Director Mr. Jerko Zuvela, the management of the company is very pleased to deliver an upgraded JORC Mineral Resource estimate that is not only larger than prior maiden Resource, but the Resource has moved into the higher Indicated category. He further added that the new Indicated Resource would support the company’s Project production targets and long-term mine life estimates which is to be outlined further in the upcoming Preliminary Economic Assessment (PEA).
The company also informed that nine pumping tests have been completed at pumping rates ranging between 4 L/s and 28 L/s. The produced lithium concentration ranged between 299mg/L and 437mg/L between bores. Based on pumping tests and estimated aquifer parameters, the aquifer sequence has the potential to support brine-abstraction. The company is progressing fast with the development of the Rincon lithium project, and it intends to use the upgraded mineral resource estimate to proceed to preliminary economic assessment stage. In the September quarter, the company completed the second stage of mineral exploration which involved drilling mineral exploration bores, test-production bores and the completion of pumping tests on the test production bores. The Stage 2 drilling was comprised of a total of thirteen drill holes to depths ranging between 21m and 147m. A total of 866m was drilled during Stage 2, and ten test-production bores were installed to both shallow and deep aquifer horizons, and a total of 168 brine assays were analyzed, of which 96 were collected under pumping conditions.
The Indicated Resource estimate exceeds the Company’s expectation, and forms basis for sustainable commercial production targets and long-term life of mine modelling to be outlined in the upcoming Preliminary Economic Assessment. Further works to refine the hydrogeological model at Rincon will include additional investigations at the interface between the eastern edge of the brine aquifer and the adjacent alluvial and colluvial deposits. And, the company will develop a dynamic model to simulate the long-term response of the aquifer to pumping.
In the last six months, the share price of the company decreased by 16.67 percent as on 12 November 2018. AGY’s shares traded at $0.240 with a market capitalization of circa $230.87 million as on 13 November 2018 (AEST 4:00 PM).
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