Fully Funded Lithium Brine Project DFS Underway
Lake Resources NL (ASX:LKE) has commenced shallow drill testing as part of development activities required for the Definitive Feasibility Study (DFS) at the company’s flagship Kachi Lithium Brine Project, Argentina.
Geophysical studies have assisted the planning of the shallow wells (up to 60m deep). These will be followed by further geotechnical studies, in addition to recent works conducted on proposed sites for Lilac’s direct lithium extraction demonstration plant and for the future production plant. All works are following COVID-19 protocols to ensure the health and safety of staff.
An additional 20,000 litres of Kachi brines will be extracted and shipped for further processing at Lilac’s pilot module in California. This data is a key part of the DFS, which formally commenced earlier this month.
Lake aims to sustainably produce the cleanest quality lithium carbonate at scale, with demand rapidly increasing for battery materials for use in the fast-growing battery market as the adoption of electric vehicles accelerates globally.
Managing Director, Steve Promnitz, said the company is well financed for the undertaking of the DFS. In November 2020, Lake extended its existing Controlled Placement Agreement (CPA) with Acuity Capital with funding increasing by A$5.5 million. Lake utilised the CPA with Acuity Capital and raised A$3,375,000 (inclusive of costs).
The funds raised will be used towards the Kachi DFS, further exploration and working capital.
Mr Promnitz said Lake is ramping up investor engagement this week and next with Australian, North American and European based investors, amid increasing focus on the lithium sector and the need for responsibly sourced supply as highlighted by recent media reports.
He said Lake is able to deliver key characteristics demanded by cathode and battery makers, including high quality, scale, scalability and ESG benefits.
Meanwhile, leading battery researcher Novonix is continuing its testwork on Lake’s high purity lithium carbonate, preparing together with commercial battery cathode precursor materials, to form a NMC622 cathode that will then be processed into NMC622 lithium-ion batteries for testing. This will enable Lake and its potential customers to make direct comparisons of Lake’s lithium product’s performance in familiar battery chemistries.
“Lake has started 2021 on the front foot by formally launching our Kachi DFS and ramping up engagement with investors and potential industry partners. Interest in the sector has never been stronger in environmentally responsible, direct lithium extractions,” Mr Promnitz said.