Argosy Minerals Advances Rincon Lithium Project with Upgraded Resource and Strategic Partnerships

Upgraded Resource and Project Development

Argosy Minerals Limited (ASX: AGY) has delivered a robust quarterly update for December 2024, highlighting key milestones in the development of its Rincon Lithium Project in Argentina. Central to the announcement is an upgraded JORC-compliant Mineral Resource Estimate (MRE) totaling 731,801 tonnes of lithium carbonate equivalent (Li2CO3), with a weighted average lithium concentration of 329 mg/L. This comprises an Indicated Resource of 640,330 tonnes and an Inferred Resource of 91,471 tonnes, underscoring the project's substantial scale and quality.

The company is methodically advancing engineering and feasibility works aimed at delivering a Definitive Feasibility Study (DFS) and Front-End Engineering Design (FEED) for a 12,000 tonnes per annum (tpa) lithium carbonate production facility. These efforts are designed to de-risk the project and position Argosy for a final investment decision (FID) and subsequent construction phase.

Hydrogeological Insights and Production Scenarios

Updated hydrogeological dynamic modelling conducted by AQ2 Pty Ltd indicates that lithium brine extraction can sustain operations at 12,000tpa for up to 45 years under the base-case scenario. An expanded operation at 24,000tpa could be supported for 23 years, assuming proportional scaling of capital and operating costs. These findings enhance the project's economic outlook by extending mine life and supporting potential future expansion.

The modelling also confirms a high recovery rate of drainable brine, with saturated aquifer conditions maintained throughout the mine life. This technical validation is critical for investor confidence and underpins the ongoing engineering design improvements and flowsheet optimisation.

Strategic Partnerships and Market Positioning

Argosy is actively engaging with strategic partners from European and American lithium supply chains, aiming to secure financing and off-take agreements that align with the global drive to diversify lithium sources away from China. Due diligence processes are underway with selected groups, reflecting growing interest in Argosy's de-risked project status and regulatory approvals already in place for the 12,000tpa facility.

Meanwhile, the company successfully completed a spot sale shipment of 20 metric tonnes of battery-quality lithium carbonate at a premium price of US$13,400 per tonne, signaling strong market acceptance of its product quality despite subdued lithium prices during the quarter.

Financial Health and Operational Focus

Argosy maintains a solid financial footing with approximately $6 million in cash reserves as of December 31, 2024, supplemented by cost-cutting measures including suspension of demonstration facility operations and staff reductions. This prudent financial management supports ongoing project development activities, including nearly $1.4 million invested in Rincon during the quarter.

The company’s Tonopah Lithium Project in Nevada remains on hold as focus intensifies on Rincon, which benefits from its location within the Lithium Triangle, a globally significant lithium resource hub.

Market Outlook and Corporate Responsibility

Despite a soft lithium price environment in 2024, Argosy’s outlook remains positive, supported by strong global electric vehicle (EV) sales growth and anticipated tightening of lithium supply-demand dynamics from 2026 onwards. The company also emphasizes its commitment to corporate social responsibility, actively supporting local communities in Argentina through jobs, training, and procurement, reinforcing its social license to operate.

Overall, Argosy’s December quarter report paints a picture of a lithium developer steadily advancing toward commercial production with a well-defined strategy, solid resource base, and growing market relevance.