Lake Resources expands Kachi lithium resource ahead of feasibility

Lake Resources (ASX: LKE; OTC: LLKKF) has announced a 250% resource increase over a June estimate at its Kachi lithium brine project in Argentina’s Catamarca province.

The new estimate released this week shows the project’s measured and indicated resources increased to 7.3 million tonnes of lithium carbonate equivalent (LCE), defined to a depth of 600 metres over 143.8 sq. km., an improvement over the June estimate of 2.9 million tonnes of LCE.

Including the inferred category, the updated total resource estimate at Kachi now exceeds 10.6 million tonnes of LCE, more than double its inaugural resource of 4.4 million tonnes announced in November 2018.

“While size helps support planned production expansion from 25,000 tonnes per year (bankable feasibility study pending) to 50,000 tonnes per year LCE, it is the considerable improvement in grades that might help improve economics in the short term,” said Red Cloud Securities in a note to clients.

This resource expansion, the third this year, results from an extensive hydrogeological characterization program over the last 18 months, greatly informing the team’s understanding of the Carachi Pampa basin’s geology, hydrogeology, and geochemistry.

Michael Gabora, the director of geology and hydrogeology, says this advanced knowledge will lead to an optimal extraction and recovery strategy, aiming for responsible lithium development with minimal water and hydrologic impact.

The update includes results from new drilling, particularly at borehole K24D41, which returned high lithium concentrations of 180-348 mg per litre over 445 meters, averaging 267 mg per litre. The consistent lithium levels and brine chemistry across new drill sites indicate effective brine circulation within the basin. The company also undertook surface geophysical surveys.

These developments will contribute to the hydrogeologic model for the forthcoming initial reserve estimate and will underpin the phase 1 definitive feasibility study expected next month.

The Kachi project, ranked among the world’s top 10 brine resources, envisions a 25-year operation producing high-purity (99.97%) lithium carbonate, according to an April 2020 pre-feasibility study.

Lake Resources’ strategic partnership with US-based Lilac Solutions will provide technological and funding support, reinforcing the project’s potential for success.