Kachi Update – Drilling Reinforces Doubling Lithium Production

Clean lithium developer Lake Resources NL (ASX: LKE; OTC:LLKKF) confirms that drilling to date at its flagship Kachi Lithium Project continues to reinforce prior lithium assay results and indicates lithium brines extend well beyond the limits of the current resource. Continued similar results would support a doubling of future planned production targeting 50,000tpa LCE (lithium carbonate equivalent).

• New drilling reinforces prior results at Lake’s flagship Kachi Lithium Brine Project, supporting potential expansion of future production, targeting 50,000tpaLCE.
• Kachi Project upside potential highlighted in recent project finance due diligence visit.

The drilling footprint will be expanded next year, with additional rotary drill rigs, with the intention to upgrade and expand the resource (see ASX announcement 7 July 2021), to support the completion of the Definitive Feasibility Study (DFS) and the final investment decision (FID) on the Kachi Project. A more detailed announcement with results and the planned drill program will be released early in the new year.

The scale and upside potential of the Kachi project was highlighted in a recent site visit by a project finance due diligence team for the Export Credit Agency (ECA) led project finance. The Kachi Project covers 74,000 hectares (183,000 acres) of leases, in a region subject to intensifying M&A activity and investment. Drilling to date focused on the southwest corner of the known salt lake and surrounds. The Resource Statement released to the ASX on 27 November 2018 identified considerable upside beyond the large identified total resource of 4.4 Mt LCE (Indicated 1.0Mt, Inferred 3.4Mt). Less than 20 percent of the current total resource is utilised for the planned 25,500 tpa lithium carbonate production over 25 years (refer ASX announcements 23 March 2021; 30 April 2020). The scale and potential can be seen in a new 3D fly-through of Lake’s Kachi Lithium Brine Project, available on the Lake website.

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