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Lake Resources (ASX:LKE) - Managing Director, Steve Promnitz - The Market Herald
Managing Director, Steve Promnitz
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  • Lake Resources (LKE) is pushing ahead with expansion of its Argentinian lithium projects in response to strong market demand and the recent boost to its flagship Kachi Project
  • The drive is also in response to a projected supply deficit expected from 2024
  • Last week, the net present value of Kachi doubled to US$1.6 billion (around A$2.1 billion)
  • Now, the company plans to send 50,000 litres of lithium brine from the Cauchari Project for testing by groups specialising in direct lithium extraction and the conversion of concentrates to lithium hydroxide
  • There are also plans to test additional brines at its wholly-owned Olaroz and Paso Projects
  • Managing Director, Steve Promnitz said if the company meets its targets, it could become a globally significant producer at exactly the right time for the accelerating electric vehicle and battery storage revolution
  • Shares are 3 per cent higher at 33.5 cents each

Lake Resources is pushing ahead with expansion of its Argentinian lithium projects in response to strong market demand and the recent boost to its flagship Kachi Project.

Last week, the company reported a 110 per cent increase in the net present value of its Kachi Brine Lithium Project to US$1.6 billion (around A$2.1 billion). It plans to expand production further with an assessment underway.

The need for growth across the industry is heightened by a significant supply deficit projected from 2024.

Consequently, Lake sees the need for even greater lithium production, thus advancing development plans on its other brine projects based on the same production method.

Lake plans to send 50,000 litres of lithium brine from the Cauchari Project for testing by groups specialising in direct lithium extraction and the conversion of concentrates to lithium hydroxide.

A scoping study is set to follow later this year, looking at ways to expand future production, with pre-feasibility study work planned at the project, including environmental impact studies and drilling for a resource statement.

High-grade lithium was intersected at Cauchari in August 2019. The results averaged 493 milligrams per litre (mg/L) of lithium and high flow rates with up to 540mg/L of lithium.

Lake says the drilling at Cauchari confirmed similar grades and lithium brines extending into Lake’s properties from the adjoining Ganfeng/Lithium Americas joint venture production development at the project.

Drilling is also expected at Lake's wholly owned, Olaroz and Paso Projects to assess additional brines. Work is anticipated once all planned holes are approved.

Managing Director, Steve Promnitz is optimistic about the project. He said if the company reaches its target it, "would become a globally significant producer with relevant scale and high-quality products, at exactly the right time for the accelerating electric vehicle and battery storage revolution."

Shares are 3 per cent higher at 33.5 cents each at 12:05 pm AEDT. 

LKE by the numbers
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