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(ASX: AGY) | ARGOSY MINERALS (UPDATED)

Jun 28, 2022

Sentiment: Bullish

Type of Trade: Speculative

Industry: EV(Electric Vehicles) - Lithium

Sector: Materials

As we as Core Lithium Argosy Minerals is pre-production phase. This lithium developer and future producer is now ahead of schedule compared to its developers peers SYA, PLL, LKE. The stock is now trading 231% above its 52 weeks price, but in some stage was trading 400% above August 2020 highs showing how the market loves companies that are transitioning from Explorer to Developer and now from Developer to Producer. Last Year I have posted the following video and the reasons why we believed in AGY. This stock gaves incredible great gains to our members and to our managing fund.

See video below from our Original Analysis – September 2021 don’t forget subscribing the channel

UPDATED ANALYSIS | January 2022 don’t forget subscribing the channel

Argosy Minerals is an Australian mineral exploration company. It is principally involved in the development of exploration projects for lithium. The projects of the company includes Rincon Lithium Project in Argentina and exploration of the Tonopah Lithium Project in USA.

The company current have 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina and a 100% interest in the Tonopah Lithium Project in Nevada, USA with the right to move to 90% ownership in consideration for funding Stage 3 development of Rincon Lithium Projects – Argentina.

The Company is currently developing its operation plan RINCON Project which aims to produce 2,000TPA Li2CO3.

The development of the plan is currently in progress with plant and equipment procurement and delivery in progress.

✅ The Company is looking forward to this significant near-term growth phase of increasing development
activity and ongoing progress toward the 10,000tpa project development expansion at Rincon, as Argosy transforms into a battery quality lithium carbonate producer and cash flow generator. The company is committed to achieving the upcoming target and commencing production operations this year at the Rincon Lithium Project.” When we first analysed AGY we have defined this company as “Pre-production phase”.

The Rincon Lithium Project – potentially a game-changing proposition given its location within the world renowned “Lithium Triangle” – host to the world’s largest lithium resources, and its fast-track development strategy toward production of LCE product.

83% of total construction works was completed by January 4, 2022.

The Company remains on schedule and on budget to achieve first production of >99.5% battery quality lithium carbonate product from mid-2022.

The progress of the Rincon Lithium project

It is critical for any investor to understand the key metrics and the chatalisthc elements of this journey between the development to the production and commercialization. Every update in the market, should have very significant impact on SP.

The 2,000tpa production operation major works comprise three main phases of works, comprising design, construction and commissioning. The design phase works (including engineering layout) are complete (100%), the construction phase is currently at 55%
completion, whilst plant commissioning works (comprising raw materials acquisition and tender works) are 13% complete.

The construction phase comprises the process plant, equipment and associated installations, earthworks and site construction (including additional camp development and associated site infrastructure), and expansion of the brine system (pumping station, plant
settling ponds) are progressing on budget and schedule, with;

  • Earth works/land movements 100% completed.
  • 94% of the site works completed (comprising site camp/accommodation, laboratory, office and other works);
  • Brine System Works Completed (100%) (comprising pumping station and plats settling ponds works);
  • 82% of the process plant completed (comprising plant equipment acquisition and plant warehouse works); and
  • 85% of utilities and associated services (comprising vapour system, communication system and ancillary service works)

The Company is progressing toward successfully developing the modular 2,000tpa operation and become a commercial battery quality Li2CO3 producer, and although it is relatively small production compared to its peers, the company is seeking further development to expand its production capacity to 10,000 tpa operation with increasing 90% ownership upon the development.

Key Elements of Rincon Lithium Project

The Rincon Lithium Project located in the world-class “Lithium Triangle” which is 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, staged development commenced targeting battery grade lithium carbonate (LCE) production
  • Rincon is joint-venture with pre-eminent lithium processing expert, Pablo Alurralde–Stage 1 industrial scale pilot plant now operational–Stage 2 initial commercial development commenced
  • 38Ha of evaporations ponds complete and operational.
  • Company aims to produce 10,000 tpa.

Stage 1 plant operational & production of battery grade LCE product already working

Stage 2 works progressing as mentioned before.

  • Initial ~38Ha evaporation ponds completed
  • Production wells completed and brine pumping on-going
  • 245,000t Indicated JORC-compliant Resource completed
  • Preliminary Economic Assessment (PEA) completed

✅ For Stage 3, pending successful development and production from Stage 2.

NEAR TERM KEY MILESTONES

The Company will consider the best development pathway to ultimately target commercial production from the Project and then earn its ultimate 90% interest in the JV Entity. (SP sensitive news)

  • Continue Stage 1 industrial scale pilot plant lithium processing works to produce battery grade LCE product. (SP sensitive).
  • Continue Stage 2 plant construction updates on monthly basis (SP sensitive).
  • Further progress on Rincon Lithium Project and development of the project Tonopah Lithium Project.

✅ Company owns its own Technology to produce LiO with differentiate technology that generates minimal environmental footprint.

Company has already produced over 25 tones LiO at over 99.5% Li2Co2 via the pilot plan and sold to Japan and South Korea customers.

✅ PEA completed – 16.5 year mine life at 10,000tpa Li2CO3 production, which the company is aiming for.

✅ Ability to further accelerate product qualification and offtake with end users.

✅ Establish further infrastructure for ramp-up to 10,000tpa production level.

The company continue to grow its alliance with European battery sector, having been accepted as a member to the European Raw Material Alliance (ERMA) and EBA250 network which is the industrial workstream of the European Battery Alliance.

Key elements to Invest in this Stock

✅ Next Lithium Producer (in the Lithium Triangle)

✅ The company also holds interest on Tonopah Lithium Project in USA with Lithium Brine targets confirmed as per the last September 29 report. Since the last report Argosy has been considering a potential exploration target works to assist with identifying the lithium brine prospectivity at Tonopah, and then consider drilling works to test the MT targets to determine the lithium brine potential within the project area, with the following highlights besides the Rincon Project.

  • MT survey data interpretation and analysis completed – delineating three MT targets prospective for lithium brine accumulation;
  • Next step exploration targeting works to identify lithium brine prospectivity and then drilling works to determine lithium brine potential – adjacent to Albemarle’s Silver.
  • Peak lithium operation Significant opportunity to leverage Argosy’s lithium brine processing technology at strategic USA project

Tonopah Lithium Project

This project is strategically located in USA in the lithium battery valley, however it is in its early exploration stages as the company is currently drilling to determine lithium brine prospectivity. Tonopah project has potential for significant lithium brine accumulation with basement depths +3,000m.

Access to TONOPAH LITHIUM PROJECT UPDATE (Click here)

Technical Analysis and Stock Price Movement

If you have bought the stock 52 weeks ago, you would been holding at 218% profit, however if you have bought this stock upon our original analysis in August where AGY was trading at 10.5c you also would be up over 200%.

Since the company has 83% of its flagship project completed AGY as announced in May, with the current market correction and high demand for lithium, it has a lot more room to run.

OUR LAST ENTRY

The last entry in August members have managed to reach over 100% with our target of 30c.

WHEN TO BUY? TARGETS AND ENTRY DETAILS (VIP MEMBER AREA – LOGIN NEEDED)

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