INTERNATIONAL ENGINEERING FIRM APPOINTED FOR KACHI
•International engineering firm, Hatch, appointed to provide engineering and design services for
Lake’s Kachi Lithium Brine Project, Argentina.
•Hatch has substantial lithium sector experience, including South American brine projects and is familiar with direct extraction processes and Lake partner Lilac Solutions’ ion exchange technology.
•Lake is examining the project’s technical and economic viability, including potential for significant cost reductions and superior recoveries based on direct extraction compared to evaporation ponds as part of the
•The Kachi project is ranked amongst the top 10 global lithium brine resources1, with a Phase 1 Engineering Study2 showing the potential for production costs to be in the lowest cost quartile, with high recoveries
•Currently in discussions with parties regarding production development funding for Kachi.
Lake Resources NL (ASX: LKE) announced today that international engineering company, Hatch Pty. Ltd. (Hatch), has been engaged to provide engineering and design services for Lake’s flagship Kachi Lithium Brine Project in Argentina. This will give the Company’s 100% owned flagship project a further boost as it targets rapid,
Lake is currently undertaking a
Significant cost reductions (projected to be within the lowest quartile cash costs) and superior recoveries are expected to be demonstrated on site for the direct extraction process offered by Lake’s partner,
As part of the project’s development, design and engineering work has commenced on a pilot plant to be built
Lake is currently in discussions with a number of parties regarding production development funding for the Kachi project that will assist with financing the definitive feasibility study that is likely to follow from the PFS.
Lake’s 100% owned Kachi project is considered one of the Top 10 largest lithium brine resources globally1.
It is located in a highly prospective area for lithium brine, being situated south of Livent/FMC’s lithium production centre, which has been operating for more than 20 years, and near Albemarle’s Antofalla project in Catamarca Province.
The region has been subject to significant corporate transactions recently involving lithium brine assets, implying an acquisition cost of
Lake recently announced a maiden resource for Kachi of 4.4 million tonnes lithium carbonate equivalent (LCE) (Indicated 1.0Mt and Inferred 3.4Mt) within a much larger exploration target (refer ASX announcement 27 November 2018). This occurs within consolidated mining leases which covers almost the entire salt lake (69,000 hectares).
Lilac’s extraction technology also offers the potential for reduced environmental impact compared to traditional processes used in Argentina, due to the removal of evaporation ponds.
Commenting on the latest update, Lake’s Managing Director Steve Promnitz said: “The appointment of an experienced international engineering firm for Kachi is another important milestone, not only for our flagship project, but also for the
“Our aim is to produce a PFS that clearly shows that Kachi can be a technically viable and commercially profitable operation that delivers superior recoveries and returns from direct extraction methods, in the lowest quartile of cash costs globally, amid rising competition for large proven lithium resources.
“Meanwhile, drilling is progressing well at Cauchari and we are witnessing encouraging signs with early samples for this project, which is located next to some of the Lithium Triangle’s largest
“Lake is exceptionally
For further information please contact: Steve Promnitz
Managing Director +61 2 9188 7864 [email protected]
(*1): Kachi Mineral Resource Statement in ASX market release titled “Large Maiden 4.4mt LCE Resource Estimate for Kachi Project” on 27 November 2018.
(*2): Phase 1 Engineering Study in ASX market release titled ”Lilac Extraction Process Shows Potential For High Lithium Recoveries At Lowest Quartile Costs At Kachi” on 10 December 2018.
Figure 1. Lake’s Kachi Lithium Project location with respect to other lithium brine projects in Chile/Argentina.
Figure 2. Kachi Lithium Project showing drilling locations and details of the drilling platforms with averaged lithium
concentrations for each drill hole.
Figure 3. Kachi Lithium Project showing lease area and dominance of the salt lake basin.
About Lake Resources NL (ASX:LKE)
Lake Resources NL (ASX:LKE, Lake) 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
A direct extraction technique is being tested in partnership with Lilac Solutions, which has shown
An additional new rig is being deployed to increase the depth capacity and speed of the drill rig currently at Cauchari. High fluid pressures, while encouraging, have meant that conditions are challenging. Results are expected to extend the proven resources in adjoining properties into LKE’s area. 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, followed by a further US$160 million to increase Ganfeng’s equity position to 50% on 1 April 2019, together with a resource that had doubled to be the largest on the planet. Ganfeng then announced a 10 year lithium supply agreement with Volkswagen on 5 April 2019. 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
For more information on Lake, please visit http://www.lakeresources.com.au/home/
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