- Drilling is anticipated to show a likely extension of the high grade lithium brine sequence from adjoining world-class lithium resources based on recent seismic lines.
- Drill locations chosen - up to four holes to be drilled.
The initial plan is to drill three holes, with a possible fourth hole, to depths of 400 metres. Drilling is anticipated to show a likely extension to the high grade lithium brines in adjacent properties (see Figures 1,2 in link below), and work is likely to commence in early October, barring any unforeseen delays.
Third party drill results on the adjoining project include 600mg/L lithium with high flow rates and 470mg/L close to the lease boundary (*2). Based on recent seismic lines, Lake expects these high grade lithium brines to extend into its leases and brine bearing sediments are estimated to extend to 300-400 metres deep, based on the interpretation of the seismic line completed by Lake.
Lake's Cauchari Lithium Brine Project adjoins the proven Cauchari lithium brine projects of SQM/Lithium Americas (soon to be Gangfeng/Lithium Americas), with an indicated resource of 8.7 Mt lithium carbonate equivalent (LCE) and an additional measured resource of 3 Mt LCE, and the Cauchari resource of Orocobre/Advantage Lithium with an inferred resource of 3.0 Mt LCE (*1), which is in the process of being upgraded to measured and indicated classification. Lake originally secured the 18,000 hectare Olaroz-Cauchari leases in early 2016 and is the only ASX junior exploration company with a large lease portfolio in this world class lithium brine province.
Managing Director Steve Promnitz said: "Discussions with relevant authorities in Argentina this week support the commencement of drilling early next month.
"This is a material development for Lake given the Cauchari leases show an extension from the adjoining proven lithium brine project which aims to be in production in two years. We will be drilling approximately 400-500 metres away from nearby high grade results which we aim to repeat. Lake is the only junior exploration company with such highly prospective and large exploration projects in Olaroz-Cauchari, and successful drilling will add materially to the value of our assets here.
"We are also working hard to deliver a maiden resource estimate for Kachi very soon. Interest in this project from offtake partners is very high.
"We also note recent reports by the Argentine Government with respect to temporary changes to export taxes, and we confirm that they have no impact on Lake. It is business as usual for us in Argentina with all projects advancing to plan."
(*1): The Cauchari project resource estimates of lithium carbonate equivalent (LCE) are from SQM/Lithium Americas (11.8 Mt LCE) and Orocobre/Advantage Lithium (3.0 Mt LCE). Lithium Americas Corp (
(*2): Drill results released by Orocobre (
(*3): from Reidel & Ehren, 2018, dated 29 June 2018 on the TSX (AAL:TSX-V) and dated 2 July 2018 on the ASX (
To view figures, please visit:
About Lake Resources NL
Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its three lithium brine projects and 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 (~200,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provide the potential to provide consistent security of supply demanded by battery makers and electric vehicle manufacturers.
The Kachi project covers 69,000 ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project in Catamarca Province. Drilling at Kachi has confirmed a large lithium brine bearing basin over 20km long, 15km wide and 400m to 800m deep. Drilling over Kachi (currently 16 drill holes, 3100m) has produced a maiden indicated and inferred resource of 4.4 Mt LCE (Indicated 1.0Mt and Inferred 3.4Mt) within a 8-17 Mt LCE exploration target (refer ASX announcement 27 November 2018).
A direct extraction technique is being tested in partnership with Lilac Solutions, which has shown 80-90% recoveries and lithium brine concentrations in excess of 3000 mg/L lithium and is planned to be trialled on site in tandem with conventional methods as part of a PFS to follow the resource statement. Scope exists to unlock considerable value through partnerships and corporate deals in the near term.
Lake Resources N.L.