Argosy Minerals Limited (ASX: AGY) reported that preparations have commenced to conduct drilling works to increase the current JORC Indicated Mineral Resource estimate for its Rincon Lithium Project in Argentina.
The company said that JORC Exploration Target delineated for Rincon Lithium Project demonstrates significant potential to materially expand current JORC Indicated Resource estimate and increase Project mine life and future production capacity. AGY said that preparation works have commenced to conduct Resource development drilling at Rincon.
Rincon exploration target
The company had recently prepared an independent JORC Code (2012) compliant Exploration Target estimate for the Rincon Lithium Project that delineated 262,000 tonnes to 479,000 tonnes of lithium carbonate between the depth interval of 102.5m to 300m below ground level, which underlies the existing JORC Indicated Mineral Resource estimate (completed in 2018).
AGY said that the independent report outlined the potential for the brine aquifer to continue being open at depth based on historical drilling within Salar del Rincon.
The Company noted that the planned confirmatory works proving the Exploration Target estimate could materially increase the resource estimate, mine life, and/or provide scope to considerably increase the annual production capacity currently defined at the Project.
Argosy said that the combined JORC Indicated Mineral Resource and Exploration Target estimates outline the potential for a range of up to 507,000 tonnes to 724,000 tonnes of contained lithium carbonate to a depth of 300m at the Rincon Lithium Project.
Preparation works commenced
The company said that it has now commenced preliminary works to conduct a drilling program to investigate realising the Exploration Target estimate.
AGY said that an exploration drill-hole and testing programme has been developed.
The company said that the programme involves diamond drilling – six drillholes to a depth of up to 300m and one drillhole up to 150m in the tenement containing the alluvial fan; detailed geological logging; collection of cores for laboratory analysis of specific yield using the Relative Brine Release methodology; collection of disturbed geological samples for Particle Size Distribution analysis (PSD) and subsequent estimate of specific yield using a “pedogenic transfer function” method; collection and analysis of brine samples from specific depth intervals using packers to isolate sampled horizons; and completion of selected exploration drill holes with 50mm PVC casing and slotted screen.
Rincon drilling focus
The company said that the drilling at Rincon will focus on confirming the geology, specific yield, and brine grade over the depths of interest. AGY said that once hydrogeological and Li-mineral prospectivity is confirmed, the requirements to determine extraction methodologies would be assessed.
Argosy Managing Director, Jerko Zuvela said: “We are excited with the increasing development activities occurring at the Rincon Lithium Project and look forward to an exciting near-term growth phase.
We expect the drilling results will outline the substantial upside that exists below the shallow-depth current JORC Indicated Mineral Resource estimate and provide further support for our planned 10,000tpa commercial scale development at Rincon.”