Lake Resources NL (ASX:LKE, OTCQB:LLKKF) has kicked off an expansion and integration strategy to fast-track its portfolio of assets in Argentina to deliver the TARGET 100 Program – aiming to produce 100,000 tonnes of high purity lithium annually to market by 2030.
The company is bringing forward a US$15 million program across its three wholly-owned owned projects - Olaroz, Cauchari and Paso - for drilling and brine testing to fast track these projects into feasibility studies in the TARGET 100 Program.
Looking ahead, a separate exploration and testing team dedicated to rapid development across Lake’s three other brine projects in Argentina will be using the comprehensive data set developed during the Kachi project’s direct extraction processing test work.
“Fast-track expansion”
Lake chairman Stu Crow said: “discussions with potential partners to assist the fast-tracking of these assets into production is underway as part of Lake’s ongoing discussions with battery metals customers and Lake’s desire to become an integrated and valuable part of global supply chains.”
Crow outlined four reasons for making the formal decision to expand the Kachi project has also given the company confidence to fast-track expansion and integration of Lake’s other assets in Argentina:
- the increasing demand by prospective offtake partners for a secure supply chain of environmentally friendly high purity lithium carbonate;
- the indicative support to fund new projects by Export Credit Agencies and the international bank panel. The UK and Canada Export Credit Agencies have already indicated a willingness to project debt finance around 70% of the Kachi project’s capital requirements;
- the supportive investment policies of the Argentine Government which has announced a process to lower export taxes as part of the Strategic Plan for Mining Development;
- the confidence of technology partner Lilac Solutions that its modular direct lithium extraction technology is scalable and cost effective.
“This, combined with increasing customer and consumer scrutiny around the environmental credentials of lithium production; and concerns about security of supply, has given us the confidence to fast-track these developments,” Crow said.
Drilling program
Lake’s drilling program has started with the first rotary well of a 4000-metre 10-hole program, in the northern areas of the Olaroz leases, which cover a 30-kilometre long area on the eastern side of established lithium producers.
These projects are located in Jujuy province, in the north-west of Argentina, close to the Allkem (Orocobre) Olaroz operation and the Lithium Americas – Ganfeng JV Cauchari project.
The drill wells are designed to quickly quantify brines identified, develop the aquifers, conduct pumping tests and provide data for initial feasibility studies, which will be followed later by diamond holes.
Further, Brines will be sampled and tested with an environmentally-friendly direct lithium extraction method, similar to previous work conducted on Kachi project lithium brines.
Lake managing director Steve Promnitz adds: “Direct lithium extraction, to be used on Lake’s multiple lithium projects, can deliver scalable projects faster to market and supply rapidly increasing demand.”