Argosy Advances Rincon Lithium Project with Successful Testworks and Energy Access

Rincon Project Feasibility Nears Crucial Milestone

Argosy Minerals Limited (ASX:AGY) is pushing forward with the engineering and feasibility phase of its flagship Rincon Lithium Project in Argentina, targeting a 12,000 tonnes per annum (12ktpa) production capacity. The company has completed extensive process testwork programs with international technology providers, delivering strong validation of the process flowsheet that underpins the upcoming Definitive Feasibility Study (DFS). Results to date show no critical issues, with lithium chloride purity reaching 99% and lithium recovery rates hitting 94.4%, bolstering confidence in the project's technical and economic viability.

These pilot and laboratory-scale tests have covered key unit operations including brine pre-concentration, solvent extraction, evaporation, and crystallisation. Notably, evaporation tests conducted in Europe confirmed the suitability of forced evaporation technology for Rincon brine, demonstrating energy efficiency and operational stability. Crystallisation testworks are ongoing, aiming to refine product quality and impurity management ahead of the DFS completion scheduled for the end of September.

Strategic Energy Infrastructure Secured

A major development for Rincon is the secured access to 40MW of energy infrastructure through an agreement with Salta Electricity Distribution Company S.A. (EDESA). Detailed engineering and feasibility works confirm the technical and commercial viability of a medium voltage line connecting the project site to Argentina’s national grid. This infrastructure is shared with the neighbouring Rio Tinto Rincon Project, with regulators pushing for a consolidated assessment to expedite approvals.

Access to reliable grid power is a significant hurdle for lithium projects in northwest Argentina, and Argosy’s achievement here positions Rincon to minimize both capital and operational expenditure. The company is also pursuing power purchase agreements with local renewable energy providers, aligning the project with Argentina’s clean energy transition and enhancing its appeal as a low-carbon lithium source.

Funding Engagement and Strategic Interest

Argosy is actively engaging strategic mining and investment groups, as well as Export Credit Agencies, to explore funding and offtake arrangements for the 12ktpa project. Recent site visits by potential partners underscore the market interest and validate the company’s staged development approach, which initially focuses on producing solid lithium chloride on site to reduce upfront capital intensity and operational risks.

While the company’s demonstration lithium carbonate facility remains suspended, Argosy emphasises that the 12ktpa development pathway offers the best value upside and is the most appropriate strategy to secure project funding and advance towards commercial production.

Tonopah Project and Lithium Market Dynamics

In the United States, Argosy’s 100% owned Tonopah Lithium Project in Nevada remains under strategic review. The company is assessing the optimal development pathway amid ongoing US government initiatives to boost domestic critical minerals production.

The lithium market itself has experienced price volatility in 2026, with lithium carbonate prices peaking near US$24,000 per tonne before softening to around US$19,300 per tonne. Despite this, electric vehicle sales continue to grow globally, particularly in Europe, while China faces a slowdown with new consumption taxes on lithium-ion cells looming. These mixed signals highlight the complex demand-supply dynamics that Argosy must navigate as it progresses Rincon towards production.

Financial Position and Operational Discipline

Argosy ended the quarter with cash reserves of approximately AUD 2.06 million, reflecting ongoing cost control and revenue-generating activities such as asset sales. The company expended around AUD 1.28 million on development activities related to Rincon, including funding to its joint venture partner Puna Mining. Payments to related parties totaled AUD 210,000, covering director and consultancy fees.

With roughly nine quarters of funding runway at current expenditure rates, Argosy is positioned to continue its feasibility and engineering works while advancing funding discussions. The company’s cautious financial management complements its technical progress, underpinning its commitment to delivering a sustainable lithium production operation.