Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has officially begun preparing a Definitive Feasibility Study (DFS) for the Kachi Lithium Brine project in South America’s lithium triangle from which the company aims to produce clean lithium for the growth of the new-age battery market.
The formal SFD process began with the appointment of Hatch as lead consultant.
This follows the completion of a compelling and robust pre-feasibility study (PFS) that underscored the potential technical and economic viability of the project using technology partner Lilac Solutions Inc.’s sustainable direct lithium mining process.
Subsequently, the project’s potential to provide the high purity lithium carbonate (99.97% Li2CO3) required by battery manufacturers was demonstrated by Hazen Research.
The resulting product was sent to Novonix to be incorporated into new-age batteries.
DFS a “key step”
Lake Resources Managing Director Steve Promnitz said, “The official launch of DFS is a key milestone for Lake to bring Project Kachi into production with in-demand ESG credentials as the transition to electric vehicles accelerates.
“Transition studies have been ongoing since the PFS and now the formal commitment from Hatch has taken place.”
An important step
The DFS is expected to be an important step in the development of the Kachi Lithium Brine project as a sustainable and commercially successful producer of high quality lithium products for the battery market.
Lake will carry out associated works in parallel with the DFS, including an environmental impact study, ongoing community engagement and a demonstration plant to be commissioned on site later in 2021.
To manage the DFS and related workflows, Lake Resources has appointed Nicholas Lindsay as Technical Director.
A former non-executive director of the company, Lindsay has experience in feasibility studies in South America and is confidently expected to deliver the Kachi DFS by the first quarter of 2022.
Promnitz said, “Nick Lindsay’s assistance with the PFS has been invaluable and will now be extended to the DFS.”
Use disruptive clean technology
The company’s strategy is to produce sustainable high-purity lithium from the flagship Kachi project.
A key element of this strategy is to use the direct clean lithium extraction method developed by Lilac and which is being successfully tested in ongoing work with Kachi brines.
Lake is committed to being an efficient, responsible, environmentally friendly and competitive supplier of high-purity lithium that is easily scalable and sought after by EV and Tier 1 battery manufacturers.
The company has a market capitalization of around AU$66 million and shares are up 7% today at AU$0.085.