Quarterly Activities Report Q3/2017
- Four prime lithium projects - 3 brine projects and 1 hard rock project - each capable of being a 'company maker' in Argentina.
- Drilling to start in days at Kachi Lithium Brine Project in Catamarca after last stage of approval successfully completed with a local public hearing.
- Diamond drill program of 1500m in at least 3 holes with initial payments made.
- Lease approvals continue to progress in the Olaroz/Cauchari and Paso Projects in Jujuy province adjacent to Orocobre and SQM/Lithium Americas.
- Letter of Intent (LOI) signed with Catamarca State mining & energy entity to advance Kachi Project.
- Lake holds one of the largest listed lithium lease holdings in Argentina of 170,000 Ha, including areas under option.
- Kachi Lithium Brine Project covers ~52,000Ha consolidated mining leases over an undrilled salt lake near to Albermarle's Antofalla Project.
- Catamarca Pegmatite Lithium Project (~72,000 Ha), under option, with large pegmatite swarms over 150km.
- Focus in coming Quarter on drilling at Kachi Lithium Brine Project; Results expected to be substantially higher than current positive surface results.
- Lake is organizing a debt security to provide additional funding for a drill program without dilution adding to the cash position to meet current exploration initiatives.
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About Lake Resources NL
Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its 3 lithium brine projects and 1 hard rock project in Argentina, all owned 100%. The leases are in a prime location among the lithium sector's largest players within the Lithium Triangle where half of the world's lithium is produced. Lake holds one of the largest lithium tenement packages in Argentina (~180,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provides the potential to provide security of supply demanded by battery and electric vehicle manufacturers located.
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, are located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy and Catamarca Provinces. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins SQM/Lithium Americas Cauchari project, where high grade lithium (600 mg/L) with high flow rates have been drilled immediately across the lease boundary. The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project.
Drilling at Kachi has confirmed a large lithium brine bearing basin over 25km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement later in 2018. Drilling will commence in coming months at Olaroz-Cauchari now that tenure has been confirmed in a landmark agreement in March 2018. This will provide several catalysts for the company's growth. Scope exists to unlock considerable value through partnerships and corporate deals in the near-term.
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium's equity transaction in some of Orocobre's leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake's properties. Nearby projects of Lithium X were recently acquired via a takeover offer of C$265 million completed March 2018.
The demand for lithium continues to be strong for lithium ion batteries in electric vehicles, according to recent data from the leading independent battery minerals consultant - Benchmark Mineral Intelligence. Supply continues to be constrained suggesting good opportunities for upstream lithium companies for many years.
Lake Resources NL