New Infill Programme Underway In Argentina
Lake Resources NL (ASX: LKE) has elected to increase drill testing at its flagship Kachi Lithium Project in Argentina to support a doubling of future planned production.
A four well, 1,600m diamond drill programme is advancing, with brine sampling and pump testing.
The drilling programme will support a conversion of resources to reserves for Kachi’s Definitive Feasibility Study (DFS). Detailed COVID-19 controls and procedures are being followed to ensure the safety of employees, contractors and local communities.
Drilling will enable Lake to convert Inferred Resources to Measured and Indicated (M&I) Resources, to allow a production expansion study to be conducted.
The Kachi Project covers 74,000 ha of leases over a salt-lake south of Livent’s lithium operation in Argentina, with a large total resource of 4.4 Mt LCE (Indicated 1.0Mt, Inferred 3.4Mt.
Less than 20% of the current total resource is utilised for the planned 25,500 tpa lithium carbonate (LCE) production over 25 years.
Lake’s Managing Director, Steve Promnitz, said infill drilling is designed to assist the conversion of resources to a higher category with increased data. The move follows increased investment in Argentinian lithium projects, including Ganfeng Lithium’s planned development of a lithium-ion battery factory in Jujuy Province and another 20,000 tpa LCE lithium project at Marianas, as well as German automaker BMW’s 285 million Euro (A$447 million) contract with Livent to source lithium from Argentina.
Argentina’s government has flagged plans to incentivise further production of lithium, with the government identifying a potential resource of some 350 million tonnes LCE.
“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,” Mr 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.
“This drilling programme will support an expansion study to double production to 50,000tpa. This 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, perfect for the needs of leading EV makers.”
For further information please visit: https://lakeresources.com.au/
