Drilling to Commence Early October at Cauchari Lithium Project
- 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 (TSE:LAC) updated their Cauchari indicated resource estimate of 8.7 Mt of Lithium Carbonate Equivalent (LCE) at an average grade of 570 mg/L lithium with an additional measured resource of 3 Mt LCE at 630 mg/L lithium in a release dated 18 June 2012 and 24 July 2012 prepared by their Qualified Persons Mark King, Roger Kelley and Daron Abbey, as defined in the NI 43-101 technical report. Orocobre/Advantage Lithium announced their updated Cauchari inferred resource estimate of 3 Mt of Lithium Carbonate Equivalent (LCE) at an average grade of 450 mg/L lithium, dated 29 June 2018 on the TSX (AAL:TSX-V) and dated 2 July 2018 on the ASX (ASX:ORE), prepared by Mr Frits Reidel, a "Qualified Person" as defined in the NI 43-101 technical report.
(*2): Drill results released by Orocobre (ASX:ORE) from their market releases on the ASX on 18 April 2018 and 29 June 2018.
(*3): from Reidel & Ehren, 2018, dated 29 June 2018 on the TSX (AAL:TSX-V) and dated 2 July 2018 on the ASX (ASX:ORE)
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About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising clean, direct extraction technology for the development of sustainable, high purity lithium from its flagship Kachi Project, as well as three other lithium brine projects in Argentina. The projects are in a prime location within the Lithium Triangle, where 40% of the world's lithium is produced at the lowest cost.
This method will enable Lake Resources to be an efficient, responsibly-sourced, environmentally friendly and cost competitive supplier of high-purity lithium, which is readily scalable, and in demand from Tier 1 electric vehicle makers and battery makers.
Lithium Americas Corp
Lake Resources NL