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Lithium explorer and developer, Lake Resources NL (ASX: LKE) has announced that replicate samples of 5,000 litres is being used in the testing and commissioning process of ion-exchange pilot plant module before the arrival of ~20,000 litres of Kachi brine samples.
The prior testing is done to make sure that the technology is stable and fully functional at the time of arrival of Kachi brine samples. The samples for pre-production are presently sailing at the west coast and are anticipated to be delivered in 10 days to the ports in Oakland, California.
The Brine samples are tested initially to complete the commissioning of the Lilac Solutions pilot-scale ion-exchange module. The output of the plant is expected to be high grade and high purity lithium chloride which will be converted to battery-grade lithium carbonate. Further, the lithium carbonate samples will be supplied to the prospective off-takers to start the qualification process to the downstream groups.
In the milieu of which it is pertinent to mention that the direct extraction ion exchange method of Lilac Solutions poses a low-cost and efficient technology. Using the disruptive technology, LKE's Kachi project is likely to deliver low impurities such as iron and boron and high-quality battery-grade product, with the ability to drawing more premium for its product.
Must Read: Kachi Project - Assessing Requisites for Lake Resources’ Future Production
Scalable and Sustainable Lithium Projects At The Heart of Lithium Triangle
LKE is an ASX listed company with its focus on Argentina's Lithium Triangle, which is the low-cost lithium source to the ~half of the world’s lowest cost lithium product.
The company has 100% owned three assets at the heart of scalable and sustainable triangle, namely, Kachi Project, Cauchari Project and Olaroz project along with one hard rock project. The tenements owned by the Lake Resources is one of the most extensive lithium tenements in Argentina's triangle, i.e. around 200,000 Hectares. The large deposit base helps the company with the advantage of consistent secured supply to the off-takers along with the ability to scale up the output as and when required.
Good Read: Lake Resources Reports Larger Grade Lithium Carbonates
Kachi Lithium Project – Optimism
Apart from its apt location, the Kachi project is also set to deliver 99.9% purity high-grade product. Also, the lab testing has demonstrated that the Lilac process is likely to provide lithium concentrate of 30-60,000 mg/L lithium from the 300 mg/L lithium brine solution in a few hours. It has also reported recoveries of around 80 to 90%, which is at higher side comparing to South America's conventional brine operations recovery of 50% that too in 9 to 18 months.
All the details related to the lab outcome has been incorporated into the upcoming PFS (Pre-Feasibility Study). The Pre-production anticipated from pilot plant using Lilac’s ion exchange direct extraction methodology anticipate production costs in the lower part of the global cost curve.
Do You Know Share Price of Lake Resources Surged Post PFS Announcement of Kachi Lithium Brine Project? Curious in Knowing? Please Click Here.
Financing Position
Recently, the company announced to close out the convertible securities facility with SBI Investments (PR) LLC through both a cash payment and the issue of shares. For the same, LKE is planning to raise $3.5 million, i.e. $1.5 million from Share Purchase Plan (SPP) and $2 million from private placement.
Interested in Knowing More About Capital Raising Program, Please Read: Lake Resources’ Capital Raising Program: A Boost to Kachi Lithium Project and Shareholders
Apart from early closure of Convertible Securities Agreement, the raised money will also be used to optimise PFS of Kachi project along with the development, construction and transportation of direct extraction pilot plant.
Further, the proposal of raising funds is likely to be a success not only because of its high purity, low cost and low impurity product but also due to the company’s steps toward providing samples to the off-takers for quality testing to support in financing. Also, the company’s valuation is lesser than its peers with similar advanced brine projects, offering optimism in the future market value of the company amidst soaring lithium demand with growing EV space, possessing portfolio with exposure to both pegamatites and brines.
Stock Price Information
The stock price increase by ~3% post the announcement of processing of replicate brine. The stock traded at A$0.038 (AEDT: 2:13 PM) on 18 February 2020 and has a market cap of A$22.76 million.
