Australian miner Argosy Minerals (ASX:AGY) released a maiden mineral resource estimate for its Rincon lithium project in Argentina on Tuesday (June 19).

The report indicates an inferred mineral resource of 207,957 tonnes of contained lithium carbonate equivalent (LCE) product calculated from the results of an initial eight drill holes.

“We are very confident the resource estimate will support our project production targets that we expect to report within our preliminary economic assessment (PEA),” said Managing Director Jerko Zuvela.

“Together with additional drilling works will also enable future upgrades to the maiden Joint Ore Reserve Committee mineral resource,” he added.

According to the estimate, weighted mean average lithium concentrations range between 324 milligrams per liter (mg/l) and 369 mg/l, with a maximum recorded concentration of 490 mg/l, and an estimated specific yield varying between 1 and 13 percent.

“The resource estimate further validates the company’s fast-track development strategy to fully develop the Rincon lithium project toward commercial production. We are committed to building a sustainable lithium production company,” Zuvela also noted.

Looking ahead, the company is focused on hydrogeological works, which are planned and/or in progress with respect to brine aquifer investigations in association with the PEA works being conducted.

Argosy currently holds a 77.5-percent interest in Rincon, which is located in Salta province within the “lithium triangle” — host to the world’s largest lithium resources.

The company has the right to move to 90-percent ownership in consideration for funding stage-three development. At that point, the company will decide the best development pathway to target commercial production.

Earlier this month, Argosy announced that the first batch of LCE was produced at Rincon from an industrial-scale pilot plant.

On Tuesday, shares of Argosy closed up 7.69 percent in Sydney at AU$0.28.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.