Rincon Lithium Project – Argentina

OVERVIEW

The Rincon Lithium Project currently comprises up to 8,606 hectares of mining concessions and mining easement right landholdings at the Salar del Rincon in Salta Province, Argentina.

Argosy currently has a 77.5% interest in the entity that owns Rincon Lithium Project – Puna Mining S.A., with the right to move to 90% ownership in consideration for funding the development of the commercial scale operation.

The mining titles are 100% owned by Puna Mining and/or Argosy has legal, secure, binding and exclusive option rights to complete 100% acquisition of the properties.

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.

The Company delineated a JORC resource at the project and completed a Preliminary Economic Assessment (PEA) in 2018, which provided exceptional results.

The Company completed a resource expansion exploration diamond drilling program materially expanding the current JORC Mineral Resource Estimate (MRE) to 731,801 tonnes Li2CO3 product.

The Company also updated the hydrogeological dynamic model, increasing mine-life/brine abstraction capacity utilising the upgraded MRE completed in late-2024. The updated hydrogeological dynamic modelling results indicate:

    • Lithium brine can be pumped for a period of up to 45 years to operate at up to 12,000tpa of lithium carbonate, or
    • Lithium brine can be pumped for a period of up to 23 years to operate at up to 24,000tpa of lithium carbonate.

The Project area is serviced by high quality infrastructure including access via all-seasons roads, electrical power, solar power, a terminus for a natural gas pipeline, and road and railway to Antofagasta port facilities in Chile.

The Company has progressed the 12,000tpa project development engineering and feasibility works toward achieving a construction-ready stage for the Rincon Lithium Project. Detailed engineering works have been completed on the 40MW Medium Voltage Line Project, with works progressing for delivery of the 40MW energy infrastructure via tender process for construction of a 33kV electric transmission line and associated transformer station to power the Rincon Lithium Project.

Argosy remains confident that key upcoming milestones and achievements will prove successful to demonstrate the long-term sustainability and continued development of the Rincon Lithium Project.

SUMMARY

The Rincon Lithium Project is located in the world-class “Lithium Triangle” – the world’s dominant source of lithium production:

  • Located in Salar del Rincon, Salta Province, Argentina
  • Flagship asset in Argosy’s lithium fast-track development strategy toward battery grade lithium carbonate (LCE) production
  • Puna Mining S.A. and the Rincon Project is a partnership with pre-eminent lithium processing expert Pablo Alurralde

Stage 1 – Industrial Scale Pilot Plant – COMPLETED

  • Produced over 30 tonnes of high purity battery grade lithium carbonate
  • Sold ~25 tonnes of product to Asian based customers

Stage 2 – Demonstration Scale Operation – COMPLETED

  • Produced high purity battery grade lithium carbonate product
  • Sold ~150 tonnes of product to Asian based customers

Stage 3 -12,000tpa Lithium Operations – IN PROGRESS

  • Environmental Impact Assessment regulatory approval received from Salta Provincial Government in April 2024
  • Progressing works to complete the 12,000tpa project feasibility and development engineering works to achieve a construction-ready stage
  • Progressing the 40MW Medium Voltage Line Project from design into construction
  • Assess and review opportunities for strategic arrangements, product off-take, funding options and/or investment support to develop the 12ktpa project

The Company has made significant progress to develop the project, via process design, pilot plant test work operations, demonstration scale operations, product strategy and energy infrastructure continue to de‑risk the 12ktpa Rincon Lithium Project and position it for a robust final investment decision and successful commercialisation to confirm the long-term sustainability and significance of our Rincon Lithium Project.

Argosy is committed to building a sustainable lithium production company, highly leveraged to the forecast growth in the lithium-ion battery sector.