Rincon lithium project, Argentina
Name of the Project
Rincon lithium project.
Location
Salta province, Argentina.
Client
Argosy Minerals.
Project Description
A preliminary economic assessment (PEA), equivalent to a Joint Ore Reserves Committee-complaint scoping study, has confirmed or surpassed the company’s original expectations.
The Argosy base case envisages a 10 000 t/y operation with a 16.5-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $399-million and internal rate of return of 53%, with a payback of 2.1 years.
Value
The initial capital cost in the base case is estimated at $140.9-million. The PEA financials exclude Rincon’s potential to produce an estimated 35 000 t/y of potash and 25 000 t/y of magnesium hydroxide as by-products.
Duration
First lithium carbonate production has been targeted for the first quarter of 2021.
Latest Developments
The results of the PEA have further validated Argosy’s fast-track development strategy to fully develop the Rincon project towards commercial production. The PEA, together with Argosy’s operational Stage 1 plant, provides the company with a convincing investment proposition to secure additional project finance and strategic partnerships to continue progressing the project to commercial development. Subject to funding, Argosy aims to undertake environmental permit work to have this approved by the first quarter of 2019 while awarding major contracts by the second quarter of 2019, allowing for construction to start in the third quarter of 2019.
Key Contracts and Suppliers
Primero Group, AQ2, and Benchmark Mineral Intelligence (PEA).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Argosy, tel +61 8 6188 8181 or email admin@argosyminerals.com.au.
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