Brine Drilling Progressing Well at Kachi Lithium Brine Project
- Drilling has intersected brine in a second drillhole within brines below the lithium bearing salt lake of the 100%-owned Kachi Lithium Brine Project in Catamarca Province, Argentina
- The second diamond drillhole is below 125m depth in permeable sandy horizons containing brines with promising conductivities and densities
- Initial assay results from the brines are anticipated in early January
These brines display encouraging conductivities and densities - positive indicators for future results. Initial assay results are anticipated in early January. The second drill hole is at 126m depth and planned to continue to below 250m after the Christmas recess (12 days) to test deeper aquifers. The first hole was terminated at 71m after testing the near surface aquifer. These holes are part of a maiden 1,000m diamond drilling programme. The programme can be extended pending the outcome of assay results.
After returning from site this week, Lake Resources' Managing Director Steve Promnitz said: "Drilling has intersected brine saturated sediments from a metre from surface, which includes significant permeable sands. The first set of assay results will be reported as soon as possible. Activity in the lithium sector has intensified with a neighbouring project under a takeover offer on market for C$265 million. This bodes well for Lake given the scale of the four projects in Argentina's Lithium triangle and the fact that they are 100% owned."
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 Province to facilitate the project through various permitting stages from exploration to production which bodes well for the future.
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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