Argosy Minerals is progressing its 12,000tpa Rincon Lithium Project in Argentina with robust feasibility testwork validating its process flowsheet and securing a 40MW power supply, underpinning its upcoming Definitive Feasibility Study.
- Multiple testwork programs confirm process flowsheet robustness
- Pilot scale solvent extraction achieves 99% lithium chloride purity
- 40MW energy infrastructure agreement with Salta power distributor
- Engineering package for DFS on track for end-September completion
- Project benefits from strategic location and infrastructure access
Robust Testwork Validates Process Flowsheet
Argosy Minerals Limited (ASX:AGY) is steadily advancing its 12,000 tonnes per annum (tpa) Rincon Lithium Project in Argentina, with multiple testwork programs delivering strong validation of the updated process flowsheet. These programs, spanning brine pre-concentration, solvent extraction, evaporation, and crystallisation, are providing critical engineering and operational data to underpin the Definitive Feasibility Study (DFS).
The solvent extraction pilot plant, operated in Salta, has successfully produced lithium chloride concentrate with a purity of 99% and lithium recovery rates of up to 94.4%. These results confirm the technical feasibility and scalability of the process, with longer operation times improving system recovery and stability. Evaporation tests in Europe demonstrated energy-efficient, continuous operation with minimal maintenance, while crystallisation testworks are ongoing to optimise product quality and impurity management.
Engineering Works and DFS Progress
Feasibility engineering is progressing in parallel with testworks. Front-end evaporation pond system design, including pond sizing, layout, and brine transfer infrastructure, is underway. Detailed designs for the borefield-to-pond brine gathering system and concentrated brine delivery to the process plant are also advancing. The crystallisation engineering package is scheduled for completion by the end of September 2026, aligning with the overall DFS timeline.
Argosy’s Managing Director Jerko Zuvela expressed optimism about the progress, highlighting the project's significant location advantages. The site benefits from established grid power, industrial water, and transport infrastructure, which collectively reduce upfront capital expenditure and operational risks.
Secured 40MW Power Supply Reduces Capex Risk
A major milestone has been achieved with the execution of an agreement with Salta Electricity Distribution Company S.A. (EDESA) to secure up to 40MW of power for the Rincon facility. EDESA has completed detailed engineering and feasibility works, confirming both technical feasibility and commercial viability for a stable, reliable energy supply via a medium voltage 33kV line connected to the national grid through an 8.6km transmission line.
This infrastructure program is coordinated alongside the neighbouring Rio Tinto Rincon Project, with regulatory authorities requesting a consolidated assessment to expedite approvals. The parallel transmission lines are expected to connect both projects to the Altiplano sub-station, ensuring long-term energy security.
Ongoing Hydrogeology and Water Supply Planning
Complementing the process and energy infrastructure, Argosy is developing a detailed brine production wellfield design and has drilled a production well for industrial water supply. Surface infrastructure planning for water usage is progressing, supporting the anticipated 12ktpa operation.
The company confirms that all material assumptions underpinning previous production targets remain unchanged, though it cautions that inferred mineral resources carry inherent geological uncertainty, which is standard for projects at this stage.
Bottom Line?
Completion of the DFS engineering package by September will be a key catalyst, with ongoing crystallisation testwork and final infrastructure approvals critical to de-risking the Rincon Lithium Project.
Questions in the middle?
- Will ongoing crystallisation testworks confirm optimal product quality and impurity management?
- How will the consolidated energy infrastructure approval process with Rio Tinto impact project timelines?
- What financing strategies will Argosy pursue to capitalise on its reduced capex risk from secured infrastructure?