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Tech Metals: Lake sets date for shipping of bigger lithium samples, but PFS still to come
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Lake Resources (ASX:LKE) today revealed its plans to increase the size of offtake samples it will send from the Kachi lithium brine project in Argentina and aims to do that by the March 2020 quarter.
The Sydney-based company said it was “targeting first quarter 2020 for pre-production of initial lithium products for customer qualification purposes for off-takers and potential project partners”.
Lake, which is on the hunt for a new chairman, plans to send 20,000 litres of lithium brine to its pilot plant site in the US state of California.
The company has been working towards completing its pre-feasibility study (PFS) – an economic assessment of the value of its flagship lithium project Kachi – by the end of 2019.
This morning the $13.2m explorer gave a brief update on the state of the number-crunching study, telling the market the “pre-feasibility study is nearing completion for Kachi”.
No word on the actual due date.
The project currently has a resource of 4.4 million tonnes lithium carbonate equivalent (LCE), which Lake says puts the project in the top 10 globally.
Managing director Steve Promnitz referenced milestones and the company’s board movements in his comments today but he didn’t elaborate on the company’s current expectations for PFS delivery.
“Next year is set to mark a number of new milestones for Lake as we advance our key projects,” Promnitz said.
“With a strengthened board and support from investors, we are confident of delivering increased value for shareholders in an environment where delivering quality lithium products will be crucial to success.”
Geologist and Austmine chief operating officer Dr Robert Trzebski joined Lake’s board this week after new chief financial officer Garry Gill joined the company six weeks ago.
Lake is still on a hunt for a permanent chairman, with capital raising and marketing go-to Stu Crow temporarily in the role as interim chairman.
The company has been trying to lock in up to $US25m ($36.2m) debt funding for pre-production for its Kachi and Cauchari projects in Argentina.
It’s been drawing on the help of London-based emerging markets specialist financial advisor SD Capital Advisory.
Lake’s goal is to eventually produce 40,000 tonnes a year from the Cauchari project.
Stockhead is seeking comment.
In other ASX tech metals news:
A day after battery metal lovers left the New World Metals Conference in Perth for a spot of cricket, Vital Metals (ASX:VML) has achieved leach recoveries of up to 97 per cent from high-grade rare earth concentrate produced from ore at its Nechalacho project near Yellowknife in Northwest Territories, Canada. The achievement added 9.1 per cent to its share price which sat at 1.2c by lunchtime.
