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Detail
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Source Material
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As of:
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Friday, 13 April 2018
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Company Overview
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AGY is an Australian company based in Perth committed to building a sustainable lithium production company, highly leveraged to growth in the lithium-ion battery sector.
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AGY webpage: http://www.argosyminerals.com.au
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S&P 500: AGY joined the All Ords effective from 19 Mar 2018
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ANN 09-03-2018: S&P Dow Jones Indices Announces March 2018 Quarterly Rebalance: https://www.asx.com.au/asxpdf/20180309/pdf/43s9c4xfsrvf0v.pdf
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2017 Annual Report
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ANN 29-03-2018: Annual Report: https://www.asx.com.au/asxpdf/20180329/pdf/43sv2l0qv4xs5d.pdf
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2018 AGM: Monday 14 May
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ANN 13-04-2018: Notice of AGM: https://www.asx.com.au/asxpdf/20180413/pdf/43t5x22kywbtyk.pdf
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Project Overview
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The Rincon Project is owned by a JV entity; Puna Mining S.A. As of 27-02-2018, AGY has a 77.5% interest in Puna Mining S.A. (with further rights to earn up to 90%). JV partners are Mr Pablo Alurralde and Mr Francisco Mendendez. Mr Alurralde is the lithium processing expert managing the project on the ground in Argentina.
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Ann 27-02-2018: Argosy Completes Increase in Rincon JV Ownership to 77.5% https://www.asx.com.au/asxpdf/20180227/pdf/43rz407vtfszgc.pdf
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AGY’s Rincon project is brine lithium (ie not hard rock lithium) within the Salar del Rincon in Salta Province, Argentina.
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For an overview of Lithium Brine see http://www.srk.com.au/sites/default/files/SRK_AU_Lithium_Brines_Presentation_-_August_2016.pdf. Credit to @MarketingMan
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Land area comprises up to 2,561.9ha, including binding option for Mina Tincal announced Nov 2017. Project land area comprises significant lithium and associated infrastructure services and mining easement right landholdings to be equiped for future Stg 3 development and commercial production.
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ANN 14-11-2017: Strategic Acquisition for Rincon Project https://www.asx.com.au/asxpdf/20171114/pdf/43p6fflj4bsyrz.pdf
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Evaporation ponds
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Stg 1: 1ha - concentrating since Apr 2017 and at a suitable lithium concentration level to provide the first feedstock for Stg 1 Plant initial operations.
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ANN 15-03-2018: Approval Granted for Development of Additional Stg 2 Ponds https://www.asx.com.au/asxpdf/20180315/pdf/43sgcdx7wnj8rw.pdf
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Stg 2.1: ~10ha - nine ponds concentrating since Jan 2018
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ANN 20-12-2017: Rincon Update - Lithium Brine in Stage 2 Ponds: https://www.asx.com.au/asxpdf/20171220/pdf/43qb6q9f7nj301.pdf
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For satellite time lapse image of Stg 2.1 pond construction see AGY tweet of 12-03-2018: https://twitter.com/ArgosyMinerals/status/973046627169521664
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For satellite image of Stg1 and Stg 2 ponds taken 10-02-2018, see https://hotcopper.com.au/posts/31049614/single. Credit to @spinc
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Stg 2.2: ~24ha - Formal regulatory approval granted Mar 2018 to construct a further 8 evaporation ponds, resulting in combined total of ~34ha Stg 2 operable ponds.
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ANN 15-03-2018: Approval Granted for Development of Additional Stg 2 Ponds: https://www.asx.com.au/asxpdf/20180315/pdf/43sgcdx7wnj8rw.pdf
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For tweet showing “postcard” from Rincon of pond construction: https://twitter.com/ArgosyMinerals/status/978801751334838274
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Stg 3: Mina Romulo acquired in Aug 2017 (binding option expireing 15-03-2018) specifically for Stg 3 development requirements. Stg 3 may entail up to ~300ha evap ponds and a large scale plant. Refer Third Party Agreements for additional information
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ANN 23-08-2017: More Ground for Rincon Lithium Project: https://www.asx.com.au/asxpdf/20170823/pdf/43ln7z8hl42z8r.pdf
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For a post on pond processes, see https://hotcopper.com.au/posts/31144681/single. Credit to @BytheHoarns,
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LCE processing plants
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Stg 1: Plant with 500 t/pa - fully owned industrial warehouse, including lab equipment for in-house analysis testing. Apr 2018: Pilot Plant commissioning and test-works commenced targeting a scalable, cost effective chemical process solution to produce BG LCE product
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ANN 03-04-2018: Rincon Stage 1 Plant Operational: https://www.asx.com.au/asxpdf/20180403/pdf/43swnthqp62lrt.pdf
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ANN 30-01-2018: Quarterly Activities Report - Dec 2017:
https://www.asx.com.au/asxpdf/20180130/pdf/43r492d79wn3j0.pdf
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Stg 2: Plant with 1,500 t/pa - located at Olcapato (~31ha mining easement right), including processing brine from additional ~24ha Stg 2.2 ponds.As of 23 Feb 2018, larger scale pilot plant designed, development to commence in Q2 2018.
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ANN 23-02-2018: BMO Conference Presentation: https://www.asx.com.au/asxpdf/20180223/pdf/43rwdc5m8jq21t.pdf
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ANN 24-11-2017: Argosy Moves to Complete Option Purchase: https://www.asx.com.au/asxpdf/20171124/pdf/43pjv2p7pvxd07.pdf
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Stg 3: Mina Romulo acquired in Aug 2017 specifically for Stg 3 development requirements. Stg 3 may entail up to ~300ha evap ponds and a large scale plant.
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ANN 23-08-2017: More Ground for Rincon Lithium Project: https://www.asx.com.au/asxpdf/20170823/pdf/43ln7z8hl42z8r.pdf
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Exploration Diamond Drilling Program
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7 out of 8 holes completed to 102.5m (R1 - R5, R7, R8).
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ANN 13-02-2018: Rincon Project Drilling Update: https://www.asx.com.au/asxpdf/20180213/pdf/43rjq3wk69kg5q.pdf
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R6 in progress. Targeting 200m (currently at 70m)
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Production Well Drilling Program
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Well 1 completed Dec 2017 to 100m (located near R2 and pumping brine to Stg 2 ponds)
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ANN 13-02-2018: Rincon Project Drilling Update: https://www.asx.com.au/asxpdf/20180213/pdf/43rjq3wk69kg5q.pdf
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Well 2 completed to 36m (located near R1)
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Well 3 planned in vicinity of R4.
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Initial Exploration Results
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Results continue to reveal better than previously anticipated lithium content over a thicker brine-bearing zone, together with better average Mg/Li ratios from historical reference data. Avg results below:
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ANN 13-02-2018: Rincon Project Drilling Update: https://www.asx.com.au/asxpdf/20180213/pdf/43rjq3wk69kg5q.pdf
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R1: 385 mg/Li, 7.6 Mg/Li (Production Well 2 location)
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R2: 487 mg/Li, 4.3 Mg/Li (Production Well 1 location)
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R3: 229 mg/Li, 6.1 Mg/Li
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R4: 446 mg/Li, 8.2 Mg/Li (Planned location for Production Well 3)
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R5: 267 mg/Li, 7.9 Mg/Li
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R6: not yet available
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R7: not yet available
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R8: 283 mg/Li, 7.6 Mg/Li
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Pablo Alurralde commented “The drilling results have confirmed greater brine bearing thickness and confirmation of a thick sequence of black sand in the Project area is very positive for future brine extraction requirements. Overall, our progress to date is extremely encouraging and I look forward to meeting our development milestones.”
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For a post on the formation of lithium-rich brines, see https://hotcopper.com.au/posts/31147891/single credit @Aussieplotz,
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JORC
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JORC will be prepared in two parts art 1 utilising current drilling data for maiden Mineral Resource and then Part 2 following completion of 2 additional diamond drilling works currently in progress (an updated Mineral Resource will be prepared in conjunction with the PEA).
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ANN 26-03-2018: Rincon Lithium Project Update: https://www.asx.com.au/asxpdf/20180326/pdf/43sqf7x0p9ct9n.pdf
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Preliminary Economic Assessment (PEA/Scoping Study)
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- PEA works on-going, will comprise: - Hydrogeological data, with life of mine modelling, production and brine pumping parameters, mineral resources, borefield details; - Capital and operating costs - Processing and engineering works - Financial analysis - Marketing analysis
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ANN 26-03-2018: Rincon Lithium Project Update: https://www.asx.com.au/asxpdf/20180326/pdf/43sqf7x0p9ct9n.pdf
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Project funding
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As of Jan 2018; fully funded to first production
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ANN 30-01-2018: Quarterly Activities Report - Dec 2017:
https://www.asx.com.au/asxpdf/20180130/pdf/43r492d79wn3j0.pdf
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Off-Take Agreements
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Arrangements have been made with a number of international cathode and battery industry participants to supply BG LCE samples for their own quality testing. Samples expected to be delivered over April and May to Japan, Korea and China.Additionally, AGY arranging to sell surplus LCE product produced during test-work commissioning of Pilot Plant.
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ANN 26-03-2018: Rincon Lithium Project Update: https://www.asx.com.au/asxpdf/20180326/pdf/43sqf7x0p9ct9n.pdf
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Third Party Agreements
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Continued discussion with Asian lithium battery sector companies, including potential for investment funding, off-take or other value-adding commercial agreements in consideration for Stg 3 development.
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ANN 30-01-2018: Quarterly Activities Report - Dec 2017:
https://www.asx.com.au/asxpdf/20180130/pdf/43r492d79wn3j0.pdf
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Rainfall
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Weather station data available from Energi group site, located at the top (northern) edge of the Solar del Rincon: http://adyargentina.com.ar/rincon/
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https://hotcopper.com.au/posts/30953626/single, credit to @Cassandra
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“Mean Annual Precipitation 63mm (page 9-13)” sourced from “Review of four Lithium Exploration Properties in Argentina”
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31-12-2016 Review of four Lithium Exploration Properties in Argentinahttps://s21.q4cdn.com/429708605/files/doc_downloads/report-for-ni-43-101-dated-december-31st-2016.pdf , credit to @beachmat
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12-08-2017: Pocitos weather station (20k from Rincon and 400m lower elevation) rained 94.23mm over last 365 days
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https://hotcopper.com.au/posts/26461599/single, credit to @georgecostanza
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Evaporation Rate
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"The evaporation rate through November was excellent, with most days having clear blue skies and averaging ~10mm evaporation per day."
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ANN 20-12-2017: Rincon Update - Lithium Brine in Stage 2 Ponds https://www.asx.com.au/asxpdf/20171220/pdf/43qb6q9f7nj301.pdf
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12-08-2017: Average water evap rate of 8.4mm/day
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https://hotcopper.com.au/posts/26461599/single, credit to @georgecostanza
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