Quarterly Activities Report
Quarterly Activities Report
Brisbane, Nov 1, 2018 AEST (ABN Newswire) - Lake Resources NL (ASX:LKE) provides the Company's Quarterly Activities Report.


- Four lithium projects in prime locations in north western Argentina, with large lease holdings totaling ~180,000 hectares.

- Resource drilling advanced at the Kachi Lithium Brine Project with 14 holes for 3100 metres to depths of 400 metres, reinforcing size and consistency of clean brines over an area of 22 x 8 kilometres;

- Kachi brines extend from surface to 400-800m depth at in permeable sands.

- Consistent results of 326 mg/L lithium, with highest grades from the most recent drill hole, with low impurities and a low Mg/Li ratio of 3.7;

- Partnership with Lilac Solutions to assess Lilac's direct lithium extraction process for the Kachi lithium brine with the goal of establishing a rapid, robust, low-cost process for producing lithium.

- Lilac process demonstrated high recoveries of 80-90% lithium directly from Kachi brines, producing a brine concentrate of over 3,000 mg/L lithium;

- The Olaroz-Cauchari leases adjoin lithium brine production of Orocobre and development projects with world class lithium resources in the same basin as Orocobre and Ganfeng/(SQM)/Lithium Americas.

- Drilling underway at Cauchari to test geophysics-confirmed extensions of adjoining world-class brine resources;

- Option exercised over ~70,000 hectare pegmatite lithium project in Catamarca, a large area with small-scale production in the past, but limited modern exploration.

Lake Resources NL is an exploration and development company with one of the largest lithium lease holdings in Argentina of ~180,000 hectares with four prime lithium projects: 3 brine projects and 1 hard rock project. Each is capable of being a 'company maker'.

These include the Kachi Lithium Brine Project which covers ~54,000 hectares of consolidated mining leases over a previously undrilled salt lake; the Olaroz-Cauchari and Paso Projects in Jujuy province adjacent to Orocobre and Ganfeng/(SQM)/Lithium Americas; and the Catamarca Pegmatite Lithium Project (~72,000 hectares), with large pegmatite swarms over past production within a 150km long belt.

A maiden resource estimate is anticipated soon from the Kachi project. The large area of Kachi with a single owner appeals to battery makers, and is suited to a strategic investment/partnership. Drilling at Cauchari has already begun, and drilling over the Olaroz leases will commence soon. These are targeting extensions of known brine lithium resources of 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 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.

The Olaroz-Cauchari and Paso brine projects are located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy Province. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins Ganfeng Lithium/Lithium Americas Cauchari project, with high grade lithium (600 mg/L) with high flow rates drilled immediately across the lease boundary.

Two drill rigs are currently drilling at Cauchari with results anticipated to extend the proven resources in adjoining properties into LKE's area with results anticipated from November into December 2018. This will be followed by drilling extensions to the Olaroz area in LKE's 100% owned Olaroz leases.

Significant corporate transactions continue in adjacent leases with development of Ganfeng Lithium/Lithium Americas Cauchari project with Ganfeng announcing a US$237 million for 37% of the Cauchari project previously held by SQM. Nearby projects of Lithium X were 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. These transactions imply an acquisition cost of US$55-110 million per 1 million tonnes of lithium carbonate equivalent (LCE) in resources.

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.



Steve Promnitz
Managing Director
Lake Resources N.L.
T: +61-2-9188-7864
E: steve@lakeresources.com.au

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