Sydney, December 15, 2021 AEST (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX: LKE) (FR: LK1) (OTCMKTS: LLKKF) confirms that drilling to date at its flagship Kachi Lithium project continues to strengthen previous lithium assay results and indicates that lithium brines extend well beyond the limits of the current resource. Ongoing similar results would support a doubling of planned future production targeting 50,000 tpa of LCE (lithium carbonate equivalent).
The drilling footprint will be expanded next year, with additional rotary drilling rigs, with the intention of upgrading and expanding the resource (see ASX announcement of July 7, 2021) , to support the completion of the Final Feasibility Study (DFS) and the Final Investment Decision (FID) on the Kachi project. A more detailed announcement with the results and the planned drilling program will be released early in the new year.
The scale and growth potential of the Kachi project was highlighted during a recent site visit by a project finance due diligence team for project finance led by the Credit Agency at export (ECA). The Kachi project covers 74,000 hectares (183,000 acres) of leases, in an area subject to increased M&A and investment activity. Drilling to date has focused on the southwest corner of the known salt lake and its surroundings. The resource statement released to ASX on November 27, 2018 identified a significant increase beyond the significant total identified resource of 4.4 Mt LCE (reported 1.0 Mt, inferred 3.4 Mt). Less than 20% of the current total resources are used for the planned production of 25,500 tpa of lithium carbonate over 25 years (see ASX announcements of March 23, 2021 and April 30, 2020). The scale and potential can be seen in a new 3D overview of Lake’s Kachi lithium brine project, available on Lake’s website.
The new infill drilling is designed to help convert resources to a higher grade with increased data.
Drilling will allow Lake to convert Inferred Resources into Measured and Indicated Resources (M&I), to enable a production expansion study targeting 50,000 tonnes per year (tpa) of lithium carbonate.
A 1,200m four-well diamond drilling program is underway and the program may be extended. The first results are pending. A water drilling rig has completed three wells exploring process water options. A third platform completed pre-collar holes and pumped brine samples. Another platform is planned for the drilling of production wells in the coming months in 2022.
“Argentina continues to be one of the few places where lithium production can increase to close the large supply gap compared to growing demand. Lake is one of the few companies that can transform into a world-class producer with a number of projects that can deliver high results. large-scale purity lithium carbonate with significant ESG benefits, ”said Lake CEO Steve Promnitz.
The leaders of Lake were recently in London and received support and encouragement for the project in recent discussions with the ECA and the international banks supported by the ECA. This was followed by a site visit to Argentina.
“Benchmark Mineral Intelligence noted that the demand for lithium is growing three times faster than the new supply. This eco-friendly project is coming to market just at the right time, with equity and debt support and a growing list of potential buyers, ”Lake’s Managing Director, Mr. Steve Promnitz, said.
“Lake, in conjunction with our technology partner Lilac Solutions, continues to make progress towards the final investment decision and the start of construction of the flagship Kachi lithium brine project next year. ”
About Lake Resources NL
Lake Resources NL (ASX: LKE) (OTCMKTS: LLKKF) is a clean lithium developer using clean direct mining technology for the development of sustainable, high purity lithium from its flagship Kachi project, as well as three other lithium brine projects in Argentina. The projects occupy a prime location in the Lithium Triangle, where 40% of the world’s lithium is produced at the lowest cost.
This method will allow Lake Resources to be an efficient, responsible, environmentally friendly and competitive supplier of high purity lithium, easily scalable and in demand by manufacturers of electric vehicles and Tier 1 batteries.
Lake Resources NL