These include the Kachi Lithium Brine Project which covers ~54,000 ha of consolidated mining leases over a previously undrilled salt lake; the Olaroz/Cauchari and Paso Projects in Jujuy province adjacent to Orocobre and SQM/Lithium Americas; and the Catamarca Pegmatite Lithium Project (~72,000 ha), under option, with large pegmatite swarms over 150km of strike.
- Four prime lithium projects - 3 brine projects and 1 hard rock project in Argentina - with one of the largest lithium lease holdings in Argentina of 180,000 hectares, including areas under option.
- Exciting maiden discovery confirmed - Kachi Lithium Brine Project - large scale, deep salt lake basin 22 x 8 kilometres, over 400 metres deep
- Kachi is a similar size to globally significant lithium producers - and 100% Lake owned
- Best results to date are 306 mg/L lithium over 300 m depth from near surface at Kachi in conductive permeable brine with low impurities and a low Mg/Li ratio of 4.3
- Drilling ongoing to produce a maiden resource at Kachi in the coming months, anticipated in October.
- Approval to drill the Olaroz-Cauchari leases is nearing completion, ready to drill in the coming weeks.
- The Olaroz-Cauchari leases adjoin lithium brine production of Orocobre and development projects that have over 15 million tonnes LCE (Lithium Carbonate Equivalent) in Jujuy in the same basin as Orocobre and SQM/Lithium Americas. A landmark agreement was signed with Jujuy Province that confirmed tenure.
- Lake secured a A$1.9 million option underwriting agreement for the listed 10c options, LKEO, expiry 27 August 2018, which supports drilling activities.
- Corporate activity continues in Argentina with US$280 million being paid for a 1.1 million tonne resource of Galaxy, located ~100km north of Kachi.
A maiden resource estimate is anticipated in the coming months at the Kachi project. The large scale with a single owner appeals to battery makers and is well suited to a strategic investment/partnership. Drilling on the Cauchari and Olaroz leases will commence soon, which appear to be extensions of known lithium resources that have over 15 million tonnes LCE (Lithium Carbonate Equivalent).
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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 makers and electric vehicle manufacturers.
The three key brine projects, Kachi, Olaroz/Cauchari, and Paso, 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 22km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement in 2018, anticipated in Oct 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 northern half of Galaxy's Sal de Vida resource was purchased for US$280 million by POSCO in June 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