Lake’s drilling to support doubling of future lithium output at Kachi
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A four hole diamond drilling program is now underway at Lake’s Kachi lithium brine project in Argentina to support Its plans to expand future production.
The program seeks to achieve this production expansion to 50,000tpa lithium carbonate by supporting the conversion of existing inferred resources into higher certainty indicated and measured resources to allow a production expansion study to be confirmed.
Lake Resources (ASX:LKE) noted the drilling will also support the conversion of resources into reserves for the project’s definitive feasibility study.
There is also scope for the 1,600m drill program to be extended.
Kachi currently has an inferred resource of 3.4 million tonnes of lithium carbonate equivalent and an indicated resource of 1MT LCE.
Less than 20% of the total resource is used for the planned 25,000 tonne per annum LCE production over 25 years.
There’s plenty of potential for the company given recent investments in Argentina’s lithium sector such as Ganfeng Lithium’s planned development of a lithium-ion battery factory in Jujuy Province along with BMW’s $447m contract with Livent to source lithium from Argentina.
“Argentina has become the key focus for lithium investment and Lake’s 100% owned projects are perfectly positioned to benefit, amid accelerating demand for battery quality lithium,” managing director Steve Promnitz said.
“Interest continues to increase among potential offtakers to secure supply, especially of a premium product with ESG benefits which Lake can produce thanks to its sustainable direct extraction process.”
He added that doubling production to 50,000tpa would make Kachi a globally significant producer and one of a few that can bring high purity lithium carbonate to market consistently with a low carbon footprint.
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.