Lake Resources NL (LKE) has revealed the maiden Ore Reserve at its flagship Kachi Lithium Brine Project in Argentina’s Catamarca Province and it’s good news for investors.
The Ore Reserve consists of 326,000 tonnes of contained lithium carbonate equivalent (LCE); a 32% increase in tonnage and a 43% increase in grade since the maiden Mineral Resource was reported in March 2018.
The Ore Reserve also confirms the robust economics apparent in the Preliminary Feasibility Study (PFS) reported Eight weeks ago.
Commenting on the news, Lake Resources’ CEO, Steve Promnitz, said “It is important that Kachi continues to provide even better economics and grade. The maiden Ore Reserve delivers on both fronts and confirms the robust economics of the PFS”.
Indeed, the Ore Reserve has a higher grade than the PFS with an average grade of 704 milligrams per litre (mg/l) Li, which is more than double the grade of 293 mg/l Li reported in the PFS.
It’s a great result, especially considering Lake Resources’ state-of-the-art modern extraction techniques, such as low-cost Direct Brine Extraction percolation ponds and solar evaporation.
In addition, the company predicts the cost of production to be as much as 50-70% of conventional brine extraction.
Promnitz concluded “The project has significant potential for further increases to both grade and tonnage, beyond the maiden reserve. The grade increase could boost economics substantially beyond the PFS as a result of the high-value battery grade market. Conceptually, the project is scalable and could support even higher production rates.”
The Kachi Project continues to impress and, with it, Lake Resources looks set to become a leading lithium producer in the years to come.