Drilling Update at Kachi Project
- Drilling is progressing within brines below the lithium bearing salt lake of the Kachi Lithium Brine Project in Catamarca Province, Argentina.
- The diamond drill rig has advanced to below 70m depth in the first hole, encountering two brine horizons with conductivities similar to surface.
- Initial results from the brines are anticipated in 3-4 weeks' time
These brines display conductivities similar to the lithium bearing brines sampled at surface and is a positive indicator for future results. Initial results are anticipated in 3-4 weeks' time. The first drill hole is planned to terminate at approximately 100-110m with the rig then commencing on the deeper second hole nearby as part of a maiden 1,000m diamond drilling programme. The programme can be extended pending the outcome of assay results.
Lake Resources' Managing Director Steve Promnitz said: "Drilling has intersected near-surface brines which confirms the basis of the project and a second hole will target deeper aquifers. Conductivity and density are positive and have proven good indicators of lithium at surface. We eagerly anticipate the first set of assay results which we will report as soon as possible. "
The Kachi Lithium Brine Project covers over 50,000 ha of mining leases owned 100% by Lake's Argentine subsidiary, Morena del Valle Minerals SA, over the centre of the known salt lakes in the deepest part of a large basin. Surface sampling has revealed positive lithium results in conductive brines which will be expanded through the drilling program and geophysics.
The company has a focus on an inclusive approach with local communities together with appropriate environmental management. The Kachi Project was selected by the State of Catamarca to be accelerated, together with a small group of energy and mining projects in the province, to ensure appropriate development. A Letter of Intent was signed with Catamarca facilitate the project through various permitting stages in exploration and development to production which bodes well for the future.
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About Lake Resources NL
Lake Resources NL (ASX:LKE) is undertaking an aggressive exploration programme to explore and develop prime lithium projects in Argentina, owned 100%, among some of the largest players in the lithium sector. Lake holds one of the largest lithium tenement packages in Argentina (~170,000Ha) secured prior to a significant 'rush' by major companies with three key lithium brine projects located in the Lithium Triangle which produces half of the world's lithium. Lake also holds one large package of lithium pegmatite properties which were an unappreciated source of lithium in Argentina until recently.
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, have similar settings to major world class brine projects being developed in the highly prospective Jujuy and Catamarca Provinces. One project is located next to Orocobre's Olaroz lithium production and SQM/Lithium Americas Cauchari project. 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 shown conductive brines in thick porous sands with results anticipated over the coming months. Surface sampling has revealed positive lithium results which will be expanded through the drilling program and geophysics. Exploration and permitting over Kachi and the other projects will provide several catalysts for the company's growth as these areas are assessed for major discoveries.
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 subject to a takeover offer of C$265 million in December 2017.
Lake Resources NL