The Argosy Minerals Ltd (ASX: AGY) share price is pushing higher on Thursday.
This comes after the lithium developer released an update on its Rincon lithium project in Argentina.
At the time of writing, the Argosy share price is up 4.76% to 6.6 cents.
The move adds to an impressive run for the small-cap lithium stock. Over the past 12 months, Argosy shares have surged more than 175%, reflecting growing investor interest in the company’s progress.
Here’s what the company announced today.
Rincon lithium project makes progress
Argosy provided an update on engineering and feasibility work for its 12,000 tonnes per annum (12ktpa) Rincon lithium project in Salta Province, Argentina.
According to the release, recent process technology test work produced 96% lithium recovery. This result supports the proposed processing flowsheet for the project.
The tests successfully produced high-purity lithium chloride concentrate, which is expected to be used as an intermediate product in the company’s processing strategy.
Argosy said the strong recovery rate increases confidence in the underlying process design and supports ongoing feasibility work.
The company is continuing to optimise the chemical flowsheet and advance key engineering studies as it works toward completing the feasibility program.
Two-stage development strategy
The Rincon project is being developed through a two-stage production pathway.
In the first stage, Argosy plans to produce solid lithium chloride as an intermediate product.
Stage two would then convert that lithium chloride into battery-quality lithium carbonate or lithium hydroxide. These are key materials used in lithium-ion batteries.
Management said producing lithium chloride first could deliver several commercial advantages. These include lower upfront capital requirements, faster market entry, and simpler processing requirements.
Energy infrastructure advances
Argosy also confirmed progress on power infrastructure for the Rincon project.
Following feasibility work with electricity distributor EDESA, the company has identified a supply solution that would provide a reliable 33kV connection from the 500kV Argentina national grid.
The plan includes a medium voltage line around 18.6 kilometres long linking the project to a nearby substation. The substation sits next to the 28MW Altiplano solar facility, which could support a long-term power supply.
To help deliver the infrastructure works, Argosy has appointed Lycopodium as the owner’s electrical engineer.
What management said
Argosy Managing Director Jerko Zuvela said the latest results mark another important step forward for the project.
He commented:
We are very pleased with the positive progress on the feasibility and engineering works, with successful test works confirming 96% lithium recovery and producing high purity lithium chloride concentrate.
He added that the power infrastructure solution represents a major advantage for the project and helps position the company for potential early development.
What’s next for Argosy?
Argosy said it is continuing to complete the remaining engineering and feasibility work required for the Rincon development.
Successful completion of the feasibility study would be an important milestone as the company moves toward project financing and production.
The post Why this ASX lithium stock is jumping 5% today appeared first on The Motley Fool Australia.
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