The Rincon Lithium Project is situated in the world renowned “Lithium Triangle”
The Rincon Lithium Project currently comprises two mining concessions (totaling 74 hectares) within the Salar del Rincon in Salta Province. In addition, the Company has executed a binding and exclusive option agreement to purchase up to an additional eleven Mining Titles within the Salar del Rincon, comprising up to ~580 hectares for the Project. Argosy can elect, at any time during the 18-month exclusive option period, to purchase any or all (or none) of the Mining Titles.
As such, the Company's Rincon Lithium Project covers up to ~654 hectares within the overall Salar del Rincon.
The Project is located in the elevated and arid Puna region of Argentina and forms part of a number of highly mineralised salars in production and development.
Geological studies within the Salar del Rincon show historical sample values that are promising for further studies to determine a potential development perspective. Historical data and records within the Rincon Project have been investigated by Mr Alurralde and will be used to assist with the Company’s works programs, however no feasibility studies have been completed within the Project area. The Project area is serviced by high quality infrastructure including access via all-seasons roads, electrical power, a terminus for a natural gas pipeline and road and railway to Antofagasta port facilities in Chile.
The key tasks and the strategy to develop the Rincon Lithium Project will involve:
Pending successful laboratory scale production at Stage 1, the Company will consider commencing Stage 2 development works with an aim to produce a pilot plant scale quantity of LCE product (targeting up to 1500 tpa), and increase its shareholding in the JV Entity to 77.5%;
For Stage 3, pending successful pilot plant scale production at Stage 2, the Company will consider the best development pathway to ultimately target commercial production from the Project and then earn its ultimate 90% interest in the JV Entity.
The targeted schedule of activities at the Rincon Lithium JV Project in order for the Company to earn the first stage 50% interest includes:
The execution of the Farm-In JV Agreement sanctions the Company and the Vendors to establish an Argentinian joint venture company (JV Entity) to own the Rincon Lithium Project in the Salta Province of Argentina, and the Company will have the right to earn up to a 90% interest in the JV Entity.