Size does matter as Lake pushes the doubles button for Kachi lithium
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Go big or go home. There’s no doubt that Lake is taking the first option for its Kachi lithium brine project in Argentina with planned production now set at 50,000tpa.
The now confirmed target of 50,000 tonnes per annum (tpa) of lithium carbonate equivalent, which is double its original planned production, is underpinned by an anticipated increase in resources from recent drilling.
It is also supported by increasing demand for a secure supply chain of environmentally friendly high purity lithium carbonate, indicative support from financiers, supportive host-country investment policies such as lower export taxes and the company’s technology partner Lilac Solutions.
Lake Resources (ASX:LKE) will use the new production target as the base case for its Definitive Feasibility Study and final investment decision for Kachi.
“Given the increasing demand and the significant lithium supply gap, Lake is focused on delivering high purity lithium carbonate at scale with meaningful ESG benefits,” managing director Steve Promnitz said.
“Lake has received indicative financial support for an increase in the size of the Kachi project from the Export Credit Agencies (ECAs) of the UK and Canada and the numerous international ECA-supported banks.
“Also, Lake’s technology partner, Lilac Solutions, is focused on advancing the Kachi Project at this larger scale.”
While Kachi currently hosts a resource of 4.4Mt of LCE, it has every reason to believe that this is conservative .
Drilling continues aimed at upgrading the current resource, which will in turn support the DFS and FID for the project.
It is also spreading its wings with a 10-hole, 4,000m drill program expected to start late this month at its Olaroz, Cauchari and Paso lithium brine projects.
Lake previously drilled and confirmed multiple high-grade lithium brines zones at Cauchari, averaging 493 mg/L lithium over 343m (from 117m to 460m), up to 540 mg/L.
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.