Brisbane - Lithium exploration company
Lake Resources NL (ASX:LKE) ("Lake" or "LKE") is pleased to report that drilling of lithium brines within porous sands, which are excellent host horizons, is progressing at the Company's 100%-owned Kachi Lithium Brine Project in Catamarca.
- Drilling continues within lithium brines at Lake's 100%-owned Kachi Lithium Brine Project in Catamarca Province, Argentina.
- Thick porous sands, which are excellent horizons for brines, have proven challenging to drill with slow progress, delaying the delivery of sufficient brine samples for results.
- Another drill rig is being contracted for immediate commencement to advance drill progress.
- Drilling is targeting depth of 300 metres to intersect further horizons which may show significant grades as suggested by nearby third party drilling.
- Discussions are progressing well to grant access to areas in Jujuy Province adjacent to SQM/Lithium Americas' and Orocobre's respective projects in Jujuy.
Drilling has been slower than anticipated due to the challenging nature of the sandy horizons with drilling advancing 25m in January. This has delayed the anticipated brine samples for assay results. As a result, Lake has contracted a larger drilling rig for immediate commencement to advance drill progress. The rig that has been contracted is a rotary rig better suited for testing brines rather than geology.
Drilling is aimed at reaching a target depth of 300m to intersect further brine horizons which are anticipated at depth. These may show significant results as suggested by nearby third party drilling with results above 250 mg/L lithium below 170m depth.
Kachi Lithium Brine Project - Background
The Kachi Lithium Brine Project covers over 50,000 ha of mining leases owned 100% by Lake's Argentine subsidiary, Morena del Valle Minerals SA, over the centre of the known salt lakes in the deepest part of a large basin. Surface sampling has revealed positive lithium results and drilling has shown conductive brines in thick porous sands with the potential for a significant lithium brine basin.
The company has a focus on an inclusive approach with local communities together with appropriate environmental management. A Letter of Intent was signed with Catamarca Province to facilitate the project through various permitting stages from exploration to production which bodes well for the future.
Update on Olaroz Cauchari Project in Jujuy Province
Lake also advises shareholders that discussions are progressing well to grant exploration access to areas within Lake's ~19,000 hectare Olaroz Cauchari Project in Jujuy Province. The project is adjacent to SQM/Lithium Americas development project and Orocobre's lithium production and targets the same aquifers.
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About Lake Resources NL:
Lake Resources NL (ASX:LKE) is undertaking an aggressive exploration programme to explore and develop prime lithium projects in Argentina, owned 100%, among some of the largest players in the lithium sector. Lake holds one of the largest lithium tenement packages in Argentina (~170,000Ha) secured prior to a significant 'rush' by major companies with three key lithium brine projects located in the Lithium Triangle which produces half of the world's lithium. Lake also holds one large package of lithium pegmatite properties which were an unappreciated source of lithium in Argentina until recently.
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, have similar settings to major world class brine projects being developed in the highly prospective Jujuy and Catamarca Provinces. One project is located next to Orocobre's Olaroz lithium production and SQM/Lithium Americas Cauchari project. The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project.
Drilling at Kachi has shown conductive brines in thick porous sands with results anticipated over the coming months. Surface sampling has revealed positive lithium results which will be expanded through the drilling program and geophysics. Exploration and permitting over Kachi and the other projects will provide several catalysts for the company's growth as these areas are assessed for major discoveries.
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium's equity transaction in some of Orocobre's leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake's properties. Nearby projects of Lithium X were subject to a takeover offer of C$265 million in December 2017.
Contact:
Steve Promnitz Managing Director
Lake Resources NL
T: +61-2-9188-7864
E: steve@lakeresources.com.au
