Lake Resources NL (ASX:LKE, OTCQB:LLKKF) has moved to expand lithium resources through drilling at wholly-owned lithium brine projects at Olaroz, Cauchari and Paso in Jujuy province, northwest Argentina, beginning in late January 2022.
The initial 10-hole, 4000-metre drill program will be divided among the three projects, with a second rotary drill being sourced to work alongside the diamond rig to quickly quantify brines identified, develop the aquifers and conduct pumping tests.
Passive seismic geophysics are already underway, to be followed up by electromagnetic geophysical surveying should targets be identified.
The brines collected will be sampled and tested with environmentally-friendly direct lithium extraction methods, similar to previous work conducted on Kachi project lithium brines.
Lake will follow this up with a scoping study to expand future production, with plans to begin pre-feasibility studies once a resource has been identified.
Responding to increased demand
“Increasing demand expressed by potential offtakers for a secure supply of high quality, environmentally friendly lithium has encouraged Lake to drill and test our other 100%-owned brine projects in Argentina, adding to our flagship Kachi Project,” Lake Resources managing director Steve Promnitz said.
“Now is the perfect time to expand our resource base, with Argentina gaining increasing international investment due to the quality of its lithium resources.
“Having recently visited the project site and engaged with local stakeholders, we are keen to ramp up activity early in the new year to seize this window of opportunity for Lake.”
Lake holds 47,000 hectares over the three lithium brine projects.
The new drilling at these sites follows recent definitive feasibility study (DFS) development work at the flagship Kachi Project, aimed at doubling production targets to meet increasing demand for high-grade, battery quality lithium produced with environmentally sustainable, direct extraction processes.
LKE believes these additional projects have positioned it well to expand output with support from export credit agencies and international investors.
The company says it is expanding in response to upgrades in the lithium demand forecasts by a range of analysts and increased electric vehicles production plans by major automakers.
About Lake Resources
Lake Resources is a lithium developer utilising ‘clean’ direct extraction technology for the production of sustainable, high purity lithium from its flagship Kachi Project within the Lithium Triangle in Argentina among other projects covering 200,000 hectares.
Kachi is a large lease holding of 70,000 hectares with an expandable resource of 4.4 million tonnes of lithium carbonate equivalent of which only 20% is used for 25 years of production at 25,500 tonnes per annum.
The direct extraction method used by the company delivers a solution for two rising demands of electric vehicle batteries – high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials.