• Lithium prices slip but medium-long term outlook for still solid according to BMI
  • Argosy says 98% of operation development works at Rincon are now complete
  • Xantippe flags a brine target with potential to host a large lithium deposit at Carachi 

 All your ASX lithium news for Tuesday, January 3

 

We’re so used to soaring lithium prices this recent wee slump was a bit of a surprise.

Benchmark Minerals Intelligence’s lithium carbonate dropped 3.9% to $82,075 and lithium hydroxide slid 1.8% to $80,650 as of December 28.

But Benchmark boss Simon Moores says don’t worry about this short term slip, because the medium-long term outlook is still solid.

“It still remains close to all-time highs with demand outstripping supply,” he tweeted.

“But a falling price doesn’t necessarily mean a shrinking market 

“During lithium’s last falling price environment, the market grew by 30%.”

The price decline is mainly due to a run down of inventory, along with growing Covid cases in China, Moores said.

 

Here’s how ASX lithium stocks were tracking today:

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A total of 27 stocks were in the green, 48 were flat and 60 were red.

 

Who has news out today? 

ARGOSY MINERALS (ASX:AGY)

Argosy has produced 1 tonne of battery-quality lithium carbonate (99.76% quality) from its Rincon Lithium Project in Argentina, with 98% of the 2,000tpa operational development works now complete.

The company says it’s well positioned to take advantage of current and near-term lithium prices, with the S&P Platts lithium carbonate price CIF North Asia recently trading at US$75,000/t. 

“We look forward to achieving many more significant milestones in 2023 as we transform into a cashflow generator, capitalising on lucrative lithium carbonate prices via upcoming product sales revenues, leading to a significant near-term growth phase for the company,” MD Jerko Zuvela said. 

A ramp-up phase is scheduled during current quarter, as the company advances toward steady-state production operations by end of Q2-CY2023.

 

XANTIPPE RESOURCES (ASX:XTC)

The company has identified a highly conductive horizon that is interpreted to represent a brine target with potential to host a large lithium deposit at its Carachi project in Argentina.

Notably, the project area shares geologic features in common with other lithium-rich salars in the region, and this brine aquifer has been reported as having elevated concentrations of lithium at Lake Resources’ (ASX:LKE) Kachi lithium project located adjacent to Carachi.

The mining authority is in the process of evaluating the environmental impact assessment (EIA) for a program consisting of 3,550 metres of exploration core holes to sample and characterise the target aquifer and one 500-metre pumpable well in the southwest portion of the claim area. 

The drilling program will commence as soon as the permits are granted. 

 

PURSUIT MINERALS (ASX:PUR)

As part of Pursuit’s due diligence for the acquisition of Trilogy Minerals, Trilogy has completed a A$8m capital raising through the issue of convertible notes which have been used to exercise options over Tenements 1, 2, 3 and 4.

These Tenements are prospective for lithium near Salta, Argentina at the Rio Grande Sur Project and are now owned by Trilogy.

“The completion of the $8 million raise by Trilogy, which formed a critical condition precedent, has been completed and significantly reduces the risk profile of the acquisition as four of the five lithium licences have now been secured,” Pursuit MD Bob Affleck said.

“The Notice of Meeting is currently being finalised with the meeting to be held in early February 2023.” 

 

AGY, XTC and PUR share prices today:

 

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