Lake Resources drilling supports doubling of future lithium production from Kachi project
Lake Resources has expanded its drilling program next year with a view to upgrade and extend its lithium resource in Argentina.
Drilling at Lake Resources’ (ASX: LKE) flagship Kachi project in Argentina’s famed lithium triangle has continued to reinforce previous assay results and indicate lithium brines extend beyond the limits of the current resource.
The company said continued similar results could support a doubling of future planned production targeting 50,000 tonnes per annum of lithium carbonate equivalent (LCE).
Lake has already committed to an expansion of its drilling footprint next year with the intention of upgrading and expanding the large resource of 4.4 million tonnes LCE, where 1Mt is indicated and 3.4Mt inferred.
The expansion will support the completion of a definitive feasibility study and final investment decision for the project.
New infill drilling is also being designed to assist the conversion of inferred resources to the measured and indicated category and allow for a production expansion study targeting 50,000tpa LCE.
A 1,200-metre, four-well diamond program is currently underway and may be extended pending initial results.
A water well rig has completed three wells exploring process water options while a third rig has been completing pre-collar holes and pumping brine samples.
A fourth rig is planned for production well drilling in the new year.
Scale and potential
Lake managing director Steve Promnitz said Kachi had considerable scale and upside potential.
“Argentina continues to be one of the few locations where lithium production can increase to assist the significant supply gap to increasing demand,” he said.
“ one of only a few companies that can transform into a globally-significant producer and deliver high purity lithium carbonate at scale with meaningful environmental, social and governance (ESG) benefits.”
Lake executives received support for the project during recent discussions with export credit agencies and international banks in London.
“Benchmark Mineral Intelligence has noted that lithium demand is growing at three times the speed of new supply,” Mr Promnitz said.
“Our environmentally-sustainable project is coming to market at just the right time, with equity and debt support and an expanding list of potential offtakers.”
Prime location
The Kachi project is in a prime location within the lithium triangle, which spans the borders of Argentina, Bolivia, and Chile to form a geographic “triangle” of lithium resources underneath the countries’ expansive salt flats.
The region is responsible for producing approximately 40% of the world’s lithium supply at the lowest cost.
Lake owns over 2,200 square kilometres of leases including one hard rock project in the triangle, and Kachi comprises 740sq km of this area.