Lake Resources expands Kachi drilling to support future production increase amidst strong demand for sustainably produced lithium

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is expanding drilling and testing beyond what is required for the definitive feasibility study (DFS) at the flagship Kachi Lithium Brine Project in Argentina, amidst strong demand for its high purity, sustainably produced product.

The aim is to accelerate the conversion of inferred resources to measured and indicated resources, to allow for an expansion beyond the 25,500 tonnes per annum lithium carbonate production planned in the DFS.

Initially, a diamond drill program of four wells from four platforms for 1,600 metres will be conducted, together with brine and sediment sampling and pump testing to refine the resource estimations for a conversion to reserves, with economic assumptions.

Drilling will begin within around two weeks, following COVID-19 controls and procedures.

Lake’s flagship Kachi Lithium Project. 

Investor backing ramps up activity

Managing director Steve Promnitz said: “Backing from global investors has enabled us to ramp up our activity at Kachi.

“This drill program will not only support current production but also allow for further expansion of Kachi’s resource to potentially double production, making Kachi a globally significant project in terms of high purity lithium carbonate production.

“We are witnessing considerable interest from potential off-takers for a high purity, sustainable product like we have at Kachi.

“Volkswagen alone has flagged moves to consume two-thirds of current lithium production by 2030 with its new battery gigafactories, adding to the investments by other major EV and battery makers.

“There is no question that the billions of dollars being invested in the world’s clean energy drive require an increased supply of the necessary battery materials, sustainably sourced.

“That is exactly what Lake intends to deliver and importantly our projects are highly scalable.”

Argentina gaining investor interest

Infill drilling should assist the conversion of resources to a higher category with increased data.

Subsequently, a program involving the drilling of four additional production wells is also planned to support increased production.

Lake Resources is well financed for the DFS with A$24 million available at the end of March, which will fund Kachi through to the construction phase in 2022.

Argentina is attracting increased investor and industry focus as a centre for low-cost lithium production, with Ganfeng Lithium planning a battery factory in Jujuy Province, BMW signing a supply deal with Livent and other M&A moves such as the merger between Orocobre and Galaxy Resources.

These moves demonstrate the South American nation will remain a centre for lithium production for decades to come.

Lake shares have been as much as 9% to A$0.25 intraday while the company’s market cap is approximately A$235 million.

Story by ProactiveInvestors