Further Conductive Brines Intercepted at Cauchari As Drilling Progresses

Battery Metals
ASX:LKE

Lake Resources NL (ASX: LKE) announced today that further conductive brines have been intercepted and sampled in the drillhole operated by the Foraco diamond rig at Lake’s 100% owned Cauchari Lithium Brine Project in Argentina (Figures 1, 5).

  • More conductive brines intercepted with higher readings at approximately 186m depth, with more encouraging conductivities of 225 mS/cm and density readings of 1.200 g/cm3.
  • These preliminary conductivity field results compare favourably to publicly available results from the adjoining major project.
  • Diamond drill rig has conditioned, sampled and cased the hole to 180 metres and is now below 205m at Lake’s Cauchari Lithium Brine Project, Argentina. The target is a ~350-450m deep sand horizon.

Lake Resources NL (ASX: LKE) announced today that further conductive brines have been intercepted and sampled in the drillhole operated by the Foraco diamond rig at Lake’s 100% owned Cauchari Lithium Brine Project in Argentina (Figures 1, 5).

Conductive brines with higher readings were intercepted and sampled at a depth of 186m, with more encouraging conductivities of 225 mS/cm and density readings of 1.200 g/cm3. This compares favourably to conductivities of 184 mS/cm and density readings of 1.170 g/cm3 at depths of 130-150m reported previously.

This testing and sampling is very preliminary using field testing techniques and accredited results will follow. The diamond drill rig has conditioned, sampled and cased the hole to 180m, is now below [205m] and is targeting a sand horizon estimated between 350-450m.

Current drilling aims to unlock value from this rapidly emerging project, located immediately adjacent to a world-class brine project in pre-production in the Lithium Triangle, approximately 500m from the Ganfeng/Lithium Americas Cauchari project. Lake is targeting the same sand horizons.

Commenting on the latest update, Lake’s Managing Director Steve Promnitz said: “Further conductive brines have been intercepted with higher field results than previously reported at depths of 130-150m. This continues to support our long held view that the brines extend under the alluvial cover on our leases. Further results will be released when available and progress to date with this rig has been very encouraging.”

For further information please contact: Steve Promnitz
Managing Director
+61 2 9188 7864 steve@lakeresources.com.au

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Figure 1: Foraco diamond drill rig at Cauchari (right) with rotary rig (left), looking across salt lake to Ganfeng/Lithium Americas project

Figure 2: Location of LKE’s drill operations at Cauchari in relation to Advantage Lithium/Orocobre & Gangfeng/Lithium Americas leases

Figure 3: Cauchari Lithium Project, with adjoining Ganfeng / Lithium Americas combined resource and Orocobre / Advantage Lithium combined resource with (Orocobre announcements 7/11/2017, 4/12/2017, 18/01/2018, 15/03/19; Advantage Lithium announcement 5/3/2018, 10/01/2019, 1/04/19). (Third Party Resource details summarised in LKE’s ASX announcement dated 6 Sept 2018)

Competent Person’s Statement – Kachi Lithium Brine Project

The information contained in this ASX release relating to Exploration Results has been compiled by Mr Andrew Fulton. Mr Fulton is a Hydrogeologist and a Member of the Australian Institute of Geoscientists and the Association of Hydrogeologists. Mr Fulton has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Andrew Fulton is an employee of Groundwater Exploration Services Pty Ltd and an independent consultant to Lake Resources NL. Mr Fulton consents to the inclusion in this announcement of this information in the form and context in which it appears.

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 8-17 Mt LCE exploration target grading in the range of 310 mg/L to 210 mg/L lithium 1(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 25000 mg/L lithium. Phase 1 Engineering Study results have shown operating costs forecast at US$2600/t LCE in the lowest cost quartile 2. This process 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.

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 June-Dec 2018. LSC Lithium was acquired in Jan-Mar 2019 for C$111 million by a mid-tier oil & gas company with a resource size half of Kachi. These transactions imply an acquisition cost of US$55-110 million per 1 million tonnes of lithium carbonate equivalent (LCE) in resources.

For more information on Lake, please visit https://www.lakeresources.com.au/home/

APPENDIX 1 – JORC Code, 2012 Edition

 

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