- Lake Resources (LKE) plans to expand drill testing at its Kachi Lithium Brine Project in Argentina to increase future production
- The drive comes from increased global demand for battery materials, as the adoption of electric vehicles ramps up
- The company aims to accelerate the conversion of inferred resources at the project to measured and indicated resources, to expand beyond the 25,500 tonnes per annum lithium carbonate set out in the definitive feasibility study
- A diamond drill program of four wells, as well as brine and sediment sampling and pump testing is planned to refine the resource estimations for conversion to reserves, with economic assumptions
- Drilling is due to start in two weeks, once COVID-19 controls and procedures are checked
- Lake Resources is up 4.35 per cent to trade at 24 cents
Lake Resources (LKE) plans to expand drill testing at its Kachi Lithium Brine Project in Argentina to increase future production.
The project covers 74,000 hectares of leases over a salt-lake, with an indicated and inferred resource of 4.4 million tonnes of lithium carbonate equivalent.
Drilling is designed to accelerate the conversion of inferred resources at the project to measured and indicated resources, allowing for an expansion beyond the 25,500 tonnes per annum lithium carbonate planned in the definitive feasibility study.
Initial works are set to include a diamond drill program of four wells from four platforms for 1600 metres, as well as brine and sediment sampling and pump testing to refine the resource estimations for conversion to reserves, with economic assumptions.
Lake said drilling is due to start in two weeks, once COVID-19 controls and procedures are checked.
Global demand for battery materials, as the adoption of electric vehicles ramps up, drives Lake’s aim to produce the cleanest quality lithium carbonate at scale.
Further, Argentina is said to be attracting increased investor and industry focus as a centre for low-cost lithium production.
In particular, Lake is encouraged by Chinese company Ganfeng Lithium’s recent move to start a battery factory in the Jujuy Province, northwest of Argentina, as well as other industry deals in the region. These are said to demonstrate potential for the South American nation to stay as a centre for lithium production for ‘decades’ to come.
Lake’s managing director, Steve Promnitz commented on the increased demand for lithium.
“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,” he said.
Lake Resources is up 4.35 per cent to trade at 24 cents at 10:14 am AEST.