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Quarterly Report
Quarterly Report
Brisbane, Feb 1, 2019 AEST (ABN Newswire) - Lake Resources NL (ASX:LKE) provides the Company's Quarterly Report for the period ending 31 December, 2018.

HIGHLIGHTS

- Major 4.4 million tonnes lithium carbonate (LCE) JORC Resource released at the Kachi Lithium Brine Project with 1.0 million tonnes Indicated and 3.4 million tonnes Inferred resource categories.

- Kachi brine resource amongst the Top 10 global lithium brine resources, based on 15 holes (3150 metres) to depths of 400 metres in permeable sands.

- Phase 1 Engineering Study showed US$2600/tonne LCE operating costs (+/-30%) with Lilac Solutions direct lithium extraction process for the Kachi lithium brine.

- Rapid, robust, low-cost process Lilac option for producing lithium at Kachi generating a brine concentrate of over 25,000 mg/L lithium.

- Exploration Target defined at Kachi with 8-17 million tonnes LCE potential over a 20km x 15km area.

- Cauchari and Olaroz drilling program outlined for the coming months adjoin large scale lithium brine resources Orocobre production (ASX:ORE) and Ganfeng/Lithium Americas pre-production areas (NYSE:LAC).

- Drilling continues at Cauchari to test extensions of adjoining world-class brine resources.

- Leases expanded to over 200,000 hectares with four lithium projects in prime locations in Argentina, including an increase of 25% at Kachi.

- Funding of $1.25 million raised in December in notes and options conversions.

Lake Resources NL is an exploration and development company with one of the largest lithium lease holdings in Argentina recently expanded to over 200,000 hectares with four prime lithium projects: 3 brine projects and 1 hard rock project.

The Kachi Lithium Brine Project has a recently announced maiden resource of 4.4 million tonnes lithium carbonate (LCE) within an exploration target of 8-17 million tonnes LCE, within consolidated mining leases enlarged to cover 69,000 hectares over almost an entire salt lake. This places the resource amongst the Top 10 global lithium brine resources (see Figure 2 in link below).

The Olaroz-Cauchari and Paso Projects in Jujuy province are adjacent to Orocobre and Ganfeng/Lithium Americas and are being drilled for the first time. The objective is to show that extensions to known major resources of over 15 million tonnes LCE continue into Lake's properties.

The Catamarca Pegmatite Lithium Project, recently enlarged to over 80,000 hectares, is at an early exploration stage and displays large pegmatite swarms over an area of past production within a 150km long belt.

To view the full report with tables and figures, please visit:
http://abnnewswire.net/lnk/RC0Y7TUB


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.

  


Contact

Steve Promnitz
Managing Director
Lake Resources N.L.
T: +61-2-9188-7864 / +61-2-9299-9690
E: steve@lakeresources.com.au



Related Companies

Orocobre Limited             
Lithium Americas Corp
Lake Resources NL    
Jiangxi Ganfeng Lithium Co Ltd    

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