Updated Research Report and Investor Stream Interview with Managing Director Steve Promnitz
Lake Resources NL (ASX: LKE) (“Lake” or “the Company”) is pleased to provide an overview of a recent research report from US-based, Fundamental Research Corp. and an opportunity to listen to an interview with Managing Director, Steve Promnitz.
Highlights:
- Raising Fair Value Estimate from $0.44 to $0.73 per share
- Maiden Resource at Kachi beats expectations - very pleased with resource as preliminary estimate was just 2.62 Mt in initiating report in September 2018
- Analyst value of Kachi Resource is $215 million; LKE $267 million
- Compare Enterprise Value of GXY at $185/tonne LCE; Advantage Lithium at $69/t; LPI at $47/t; Millennial at $28/t; whereas LKE is $7/t
- Audio interview follows recent announcement confirming low production costs using Lilac Solutions extraction process at Kachi project
A full copy of the report will be uploaded to the Company's website shortly and accessed through the following link: http://www.lakeresources.com.au/investors/?page=research
Further, the audio interview follows the Company's announcement, released on December 10 of a recent engineering study which has confirmed low production costs using the Lilac Solutions extraction process at the Kachi Project. The interview also provides scope as to how the low future production costs at Kachi compares to others in the Argentina landscape.
The audio broadcast can be accessed by clicking the link below or by visiting the Lake Resources Twitter page.
MAIDEN 4.4 MT LCE RESOURCE ESTIMATE - KACHI LITHIUM BRINE PROJECT
ASX Announcement 27 November 2018
- Maiden Mineral Resource estimate of 4.4 million tonnes of contained Lithium Carbonate Equivalent in Inferred and Indicated Categories extending to 400m below ground level in porous, permeable sediments.
- Indicated Mineral Resource estimate of 1.0 million tonnes of Lithium Carbonate Equivalent (LCE) in the central area of Kachi.
- Inferred Mineral Resource estimate of 3.4 million tonnes LCE in the surrounding area.
- Estimate based on results of 15 drill holes. Brine bearing sediments remain open at depth and laterally with opportunity for resource expansion from additional deeper drilling and extending the area of exploration drilling.
- Resource estimate centred within an exploration target with potential for 8 to 17 million tonnes LCE over 20 km x 15km with brines from surface to 400+ metres depth, demonstrating scale of the project of a similar size to globally significant lithium producers.
Argentine-focused lithium exploration and project development company Lake Resources NL (ASX:LKE) is pleased to release a large maiden resource estimate for Lake’s 100% owned Kachi Lithium Brine Project in Argentina (see Figure 1).
The maiden resource estimate contains 1 Mt of lithium carbonate equivalent (LCE) as Indicated resources, and 3.4 Mt of LCE as Inferred resources, with a resource depth of 400m for both areas (see Table 2).
Lake Resources Managing Director Steve Promnitz said: “We are very pleased to report such a significant maiden JORC Mineral Resource estimate for Kachi. The team advanced drilling within 12 months on an undrilled project, and defined a large resource and located a project that stands alongside the largest lithium projects in Argentina.”
“We will expand the resource with more drilling and move into a pre-feasibility study using conventional and a direct extraction technology from Lilac Solutions which indicate high recoveries, low costs and a reduced time to production of lithium.”
Project Background
Lake Resources’ 100%-owned Kachi Lithium Brine Project in Catamarca province, Argentina covers 69,000 hectares (170,000 acres) with 36 mining leases owned by Lake’s Argentine subsidiary, Morena del Valle Minerals SA. These are held over the centre and southern extension of the salt lake at Kachi in the lowest point (around 3000 m altitude) of a large drainage area of approximately 6800 square kilometres (2500 square miles). The basin drains the lithium bearing volcanic rocks of Cerro Galan, which is interpreted to provide the lithium for the FMC Lithium (Livent) production at Hombre Muerto, together with hot springs. Surface samples with positive lithium results in brines were explored at depth through the drilling and geophysics programs.
Drilling at Kachi has returned positive lithium values in the southwest of the project, where the passive seismic geophysics suggests the basin is the deepest, and brine extends under cover to the south.
Resource Summary
The company has to date drilled 15 brine investigation drill holes to depths of up to 403m across principal target areas of the Kachi salt lake (Figure 1). This has revealed thick permeable sand dominated sediments that are expected to continue below current drilling depth limits and beyond the surface dimensions of the salt lake. The ongoing 2017-2018 investigation program has completed a total of 3150m of drilling to date, comprising diamond drill holes, rotary wells and installation of test production bores. The table below and Table 2 outline the resource reported in accordance with the JORC Code (2012) and estimated by a Competent Person as defined by the JORC Code.
Kachi Mineral Resource Estimate - November 2018 (JORC Code 2012 Edition)
LAKE EXPANDS LEASES AS THE KACHI LITHIUM BRINE PROJECT CONTINUES TO GROW
ASX Announcement 7 November 2018
- New leases expand Lake’s 100% owned Kachi Lithium Project to 69,000 Ha, an increase of over 25%, consolidating ownership in 36 mining leases. Lake now holds over 200,000 hectares of lithium leases in Argentina.
- Recent drilling on platform K08 confirms +300 mg/L lithium values are present in the south and are likely to continue beneath cover based on geophysical results.
- Maiden exploration target shows potential for 8 to 17 million tonnes lithium carbonate equivalent (LCE) over enlarged area of 20 km x 15km with brines from surface to 400+ metres depth. The awaited initial resource estimate will only cover a small portion of the exploration target.
- Kachi is the lowest point of a large drainage area covering 6800 square kilometres (2500 square miles) larger than most basins where lithium brine is being extracted. The lithium bearing brines at Kachi are hosted in high porosity, permeable sandy sediments.
- Lake has partnered with Lilac Solutions to advance a rapid, low cost method for direct extraction of lithium from Kachi brines. The process aims to enhance the grade, reduce the lead time to production, lower operating costs and significantly increase recoveries.
Argentine-focused lithium exploration and project development company Lake Resources NL (ASX: LKE) is pleased to release new information regarding an expanded and consolidated package of mining leases covering the large maiden exploration target on Lake’s 100% owned Kachi Lithium Brine Project (See Figure 1).
Lake is releasing an exploration target over the Kachi project, as the company wishes to provide information regarding the project, while deferring the maiden resource estimate to allow incorporation of additional drilling over what is an expanding area likely to host lithium-bearing brine. In recognition of the expanding footprint of the project, further mining leases have been applied for, increasing holdings by more than 25% to 36 mining leases covering 69,000 hectares (170,000 acres) from 54,000 Ha to extend and consolidate the 100% lease holding over the southern part of the salt lake at Kachi. Lake now holds over 200,000 hectares of lithium leases in Argentina, one of the largest listed lithium lease holdings.
The maiden exploration target released over the Kachi Project, which was only drilled for the first time a year ago, shows potential for 8.0 to 17 million tonnes of lithium carbonate equivalent (LCE) over an equivalent area of 20 kilometres x 15 kilometres, based on containing brines from near surface to 400 metre depths within approximately 13 cubic kilometres of brine (13,000 gigalitres). Table 3 provides the details of the geological exploration potential, with details of the exploration target provided below. The anticipated initial resource statement will cover a small portion of this total exploration target, centred on the western part of the basin.
An exploration target is not a mineral resource. The potential quantity and grade of the exploration target is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource in the volume where the Exploration Target is outlined. It is uncertain if further exploration drilling will result in the determination of a Mineral Resource in this volume, although an initial resource statement is in the process of being prepared. The exploration target is, based on the available geological evidence, where there is the possibility of defining a mineral resource. Importantly the exploration target is not to be considered a resource or reserve. The exploration target is based on a series of assumptions and future drilling is required to determine the brine grade and formation drainable porosity values to establish whether a resource can be defined.
Lake drilling at Kachi has returned positive lithium values in the southwest of the project, where the passive seismic geophysics suggests the basin is the deepest. Further interpretation of the seismic lines suggests the basin continues to the south, significantly extending the exploration target to the south under cover where further positive results are anticipated from future drilling.
Kachi is the lowest point (around 3000 m altitude) of a large drainage area of approximately 6800 square kilometres (2500 square miles), larger than most basins producing lithium brine. The basin drains the lithium bearing volcanic rocks of Cerro Galan, which is interpreted to provide the lithium for the FMC Lithium (Livent) production at Hombre Muerto, together with hot springs. The lithium bearing brines at Kachi are hosted in high porosity, permeable sandy sediments.
Lake has partnered with Lilac Solutions to advance a rapid, low cost method for direct extraction of lithium from Kachi brines. The process aims to enhance the grade, reduce the lead time to production, lower operating costs and significantly increase recoveries.
Managing Director Steve Promnitz said: “The massive potential of this lithium brine is impressive. To use the analogy of the contained fluid in Sydney Harbour, this is equivalent to twenty five times that volume. The anticipated resource statement will only cover a small portion of this total potential.”
