The Pocitos & Teresa Projects are situated in the world renowned “Lithium Triangle”
The Projects have the following key characteristics:
- The Mina Teresa Project consists of one mining concession (File Number 227-C-2004) within the Salinas Grandes Salar in Jujuy Province.
- The Pocitos Project comprises three mining concessions (File Numbers 19457, 19458 & 19463) totalling 2,132Ha within the Salar de Pocitos.
- Historical data and records within the Project areas have been reviewed and will be used to assist with the Company’s exploration works programs.
Argosy’s immediate strategy to advance the Projects will involve:
- Commencing a geological, engineering and development works program with the ultimate objective to prepare a bankable feasibility study for the Project(s).
- The purpose of the geological exploration program would be to determine the hydrogeological characteristics of the aquifer, and involve;
- Rotary and diamond drilling.
- Transmissivity and porosity test-work on the drill core.
- Flows in the sub-aquifer.
- QA/QC controls.
- Data verification and reporting.
- Engineering and processing works would involve evaporation field tests to determine the feasibility of using natural evaporation to concentrate the Salar’s brines prior to further processing. This test program will determine the operating conditions, mass balance and thermo-dynamical equilibrium of the ponds. Crystallisation kinetics studies will be supported by climatic conditions analysis and the evapo-transpiration characteristics of the Salars using a fully automated weather station.
- As part of the engineering and development works program, a pilot plant simulation of lithium recovery will be carried out to determine the conceptual engineering parameters for the recovery, crystallisation and purification of lithium carbonate using brines recovered from the Salars, and ultimately preparing the bankable feasibility study.
- Obtaining all necessary regulatory permits and approvals to allow for lithium mining, processing and export.
- Arranging trial products for relevant product marketing and/or off-take agreements.
Option Agreement – Key Terms
- Argosy has the exclusive right, for a 12-month period and up to 3 September 2017, to purchase and acquire the 100% right, title and interest in the Pocitos and Mina Teresa Projects – Mining Licence File Numbers 19457, 19458, 19463 and 227-C-2004, for US$4,500,000. Argosy obtained shareholder approval on 16 Spetember 2016 to give it the right to exercise the option to purchase the Projects, as required by ASX.
- The Company will be entitled to manage all exploration, development and mining activities at the Projects.
- Argosy will be able to terminate the Option Agreement at any time during the option period.