Lake Resources Produces Initial Lithium Chloride Samples, Samples Show High Lithium Concentrations


Lithium exploration and development company, Lake Resources NL (ASX: LKE) is committed to the development of its flagship Kachi lithium brine project, three other lithium brine projects and one lithium brine project. hard rock in Argentina – all wholly owned projects.

Lake, with its technology partner Lilac Solutions, has taken a new step towards the delivery of high purity and responsible sourcing lithium. In this latest achievement, Lake successfully produced initial lithium chloride samples from the Lilac direct lithium mining pilot plant module that is dedicated to the Kachi Lithium Brine project.

High lithium concentrations were evidenced by the samples, consistent with previously demonstrated laboratory scale results.

Related reading: Lake Resources California tech partner picks up speed after restrictions lift

Current objective of the project

Currently, processing of 20,000 liters of brine is underway at a recently upgraded industrial facility in Lilac, California.

Lake is currently aiming to produce a sample of lithium chloride every week, which should later be converted to lithium carbonate and then sent to potential buyers.

Lake plans to have these samples analyzed by outside labs within the next week.

Also read: Lake Resources completes commissioning of Lilac pilot plant module, Stock skyrockets

Research indicates high project potential

Recently published research and the pre-feasibility study for the Kachi project indicated that Lilac’s disruptive, competitive, scalable and sustainable advanced technology will be used in Kachi’s lithium brines, and its ability to produce a high-quality product. battery quality sought after by battery and cathode manufacturers.

More than: Lake Resources zooms around 9% on ASX; New research reflects the high potential of the Kachi project

Importantly, there has been a tremendous acceleration in the momentum towards electrifying global transportation, as evidenced by the new lithium-ion battery megausins. This is supported by the UK government’s £ 1bn pledge to fund the construction of a mega-factory of lithium-ion batteries.

According to Benchmark Mineral Intelligence analysis, currently 142 battery mega factories are being built around the world, the market size having quadrupled in the past five years thanks to the electric vehicle revolution.

Factors favoring LKE’s position in the market

Lake is confident in its strong position to take advantage of the dynamic market opportunity resulting from the global transition to clean energy, coupled with the following project attributes:

  • High purity lithium carbonate samples indicating very low impurities produced using an ion exchange extraction process, capable of achieving premium prices in the market.
  • Expedited engagement with buyers to launch qualifying tests and get more involved in helping with funding
  • Significant PFS results, including a large potential long-running low-cost operation with aggressive production costs at the lower end of the cost curve
  • Sustainable and scalable lithium production in the future expected with demand from the largest electric vehicle manufacturers and a growing number of battery / cathode manufacturers.

In addition to these factors, LKE believes that the lithium demand forecast continues to be revised upwards as the supply response lags even further, especially the shortage of battery grade products.

Lake Resources believes that the lithium industry is in urgent need of a high quality supply, which is currently not produced in sufficient quantities to meet the coming demand scenario. Lake seeks to clearly demonstrate its ability to produce large volumes of high purity lithium carbonate samples and deliver them to industry buyers and potential buyers.

LKE stock was trading at $ 0.038 at market close on July 3, 2020, with a market cap of $ 26.86 million.

Related: Lake Resources Optimistic on the outlook for lithium; Interview Update with Investor Stream


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