Lake Resources N.L. (ASX: LKE), is a metals and mining sector company exploring for and developing prime lithium basins and pegmatites with key operations in Argentina.
On 21st May 2019, the company announced that it had appointed Hatch Pty. Ltd, an international leading engineering firm, to offer its engineering and design services for Lake’s 100%-owned flagship asset, Kachi Lithium Brine Project located in Argentina, South America. Hatch’s engagement would expedite the works at the project site as Lake Resources prepares for a fast-paced and low-cost lithium production with minimal environmental repercussions.
Currently, a pre-feasibility study (PFS) is being undertaken by Lake Resources at the Kachi Lithum Project to examine the project’s technical and economic viability. The PFS involves review and assessment of both conventional processing and direct extraction methods, optimisation of recovery, product specifications, project engineering design, as well as estimating the operating and capital expenditures. In the course of the PFS, Hatch will also provide inputs.
Source: Company’s Report
Significant cost reductions (projected to be within the lowest quartile cash costs) and superior recoveries are expected to be demonstrated on site for the direct extraction process offered by Lake’s partner, U.S.-based Lilac Solutions, as compared to the traditional evaporation ponds used in South American brine projects.
Also, as part of the project, the company has commenced the preliminary works (designing and engineering) to build a pilot plant for further examining the ion-exchange technology of Lilac Solutions. The design and engineering phase are estimated to last for around three months, followed by construction that would also take around three months to complete. The final delivery, installation and commissioning of the plant is planned for late 2019.
Of late, Lake is progressing discussions with a couple of potential partners concerning the production development funding for the Kachi Lithium Project to further finance the definitive feasibility study (DFS) that would inchoate the inferences and results of the PFS.
The Kachi Lithium Project, with its prime location in an extremely prospective region for lithium brine, is considered one amongst the top 10 largest lithium brine resources worldwide. It is situated south of Livent/FMC’s lithium production centre, that has been operational for over 20 years, and lies near Albemarle’s Antofalla project in Catamarca Province.
The drilling work carried out across Kachi Lithium Project area, has given an initial indicated and inferred resource of 4.4 Mt LCE (Indicated as 1.0Mt and Inferred 3.4Mt) within an 8 to 17 Mt LCE exploration target grading between 310 mg/L-210 mg/L lithium.
Commenting on the latest update, Lake’s Managing Director, Steve Promnitz explained that the appointment of an international engineering firm with extensive experience will be advantageous for Kachi and marks a crucial milestone not only for the flagship project but also for the high-productivity, high purity process offered by Lilac’s direct extraction technology.
With around 389.48 million outstanding shares, the LKE stock price closed the market trading session, at AUD 0.050, edging up 4.167% (on the prior day’s close), as noted on Tuesday, 21st May 2019.
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