Lake says it has all the data to double lithium production at Kachi
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Lake is planning to expand its drilling and development program next year as current drilling continues to support doubling future lithium production from its Kachi lithium project.
Recent drilling has reinforced previous lithium assay results and indicated lithium brines extend well beyond the limits of the current 4.4Mt of lithium carbonate equivalent (LCE) resource, fuelling LKE’s new goal of producing 50,000 tonnes per annum of LCE. This would make Lake Resources a Top 5 global lithium producer.
This upside potential was also highlighted in a recent site visit by a project finance due diligence team for the Export Credit Agency-led project finance.
Lake Resources (ASX:LKE) plans to expand its drilling footprint with additional rotary drill rigs next year.
This expansion is aimed at upgrading the expanding current resource as well as supporting the completion of the definitive feasibility study, an expansion case and the final investment decision for Kachi.
New infill drilling will also convert the current Inferred resource to the higher confidence Measured and Indicated categories.
“Argentina continues to be one of the few locations where lithium production can increase to assist the significant supply gap to increasing demand,” managing director Steve Promnitz said.
“Lake is one of only a few companies that can transform into a globally significant producer with a number of projects that can deliver high purity lithium carbonate at scale with meaningful ESG benefits.”
With analysts at Benchmark Mineral Intelligence seeing lithium demand growing three times faster than supply, Promnitz believes the highly sustainable Kachi project is coming to the market at the just the right time with equity and debt support and an expanding list of potential offtakers.
Lake is currently drilling a four well diamond drill program totalling 1,200m that may be extended while initial results are pending.
Moreover, a water well rig has completed three wells exploring process water options while a third rig has been completing pre-collar holes and pumping brine samples.
The company plans to secure a further rig for production well drilling in the coming months of 2022.
This article was developed in collaboration with Lake Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.