Drill Rig Mobilises to Cauchari
- Drill rig mobilising to LKE's Cauchari Lithium Brine Project - drilling commences next week.
- Lake is drilling four holes over 1500 metres - first results expected end of October
- Drilling anticipated to show a likely extension of the high-grade lithium brine sequence from adjoining world-class lithium resources of Ganfeng Lithium (SHE:002460) /Lithium Americas and Orocobre / Advantage Lithium.
- Cross-sections shows initial targeted high grade lithium brine horizon of four hole programme.
Drilling is anticipated to show a likely extension to the high grade lithium brines of Ganfeng Lithium / Lithium Americas in adjacent properties (see Figures 1,2 in link below). The cross-section shows the high grade lithium brine horizon targeted in first hole of a four hole programme (see Figure 3 in link below). The drill rig is now mobilising to site and Lake has contracted a high quality and experienced drilling team. Drilling is on-track to commence next week.
Third party drill results on the adjoining project include 600-705mg/L lithium with high flow rates close to the lease boundary (see Note below). Based on recent seismic lines, Lake expects these high-grade lithium brines to extend into its leases and brine bearing sediments are estimated to extend to 300-400 metres deep, based on the interpretation of the seismic line completed by Lake.
Lake originally secured the 18,000 hectare Olaroz-Cauchari leases in early 2016 and is the only ASX junior exploration/development company with a large lease portfolio within this proven lithium brine province.
Managing Director Steve Promnitz said from Argentina: "We will be drilling approximately 400-500 metres away from a proven lithium resource with nearby high grade results which we aim to repeat. We anticipate drilling 4 holes totalling 1500 metres and the program is expected to take 4 months. First results are likely at the end of October.
"We are also most encouraged by Ganfeng Lithium's recent large long term contracts to deliver lithium to one of the largest lithium battery makers, LG Chem, and agreements with Tesla and BMW. This lithium will presumably be partly sourced in the future from the adjoining Cauchari project when it reaches production in a little over two years.
"We look forward to reporting a steady stream of news as drilling progresses. The Cauchari drilling marks a key milestone for Lake and we are pleased to be starting drilling at what is very highly prospective ground. "
Note: Drill results released by Orocobre (ASX:ORE) from their market releases on the ASX on 18 April 2018, 29 June 2018 and 19 Sept 2018.
To view figures, please visit:
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.
Lake Resources NL
Jiangxi Ganfeng Lithium Co Ltd