Lake Resources will drill Olaroz, Cauchari and Paso to identify future lithium production potential

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Lake Resources chief executive Steve Promnitz said the company has seen increased demand for its future lithium from potential buyers.

Amid growing demand, Lake Resources (ASX:LKE) will undertake a new drilling program at its other lithium brine projects in Argentina’s Lithium Triangle, while advancing its flagship Kachi asset in the region.

Beginning in late January, Lake will complete a 10-hole, 4,000m drill program on its wholly owned projects – Olaroz, Cauchari and Paso.

These assets are in the Argentine province of Jujuy and are close to Orocobre’s Allkem and Cauchari operations, as well as the Cauchari lithium brine asset of Ganfeng and Lithium America.

Lake has previously confirmed the presence of brines at its Cauchari project. In 2019, drilling on this asset returned 343 m at 493 milligrams per liter of lithium from 117 m. The highest range was 540 mg/l lithium.

The company noted that the brines and grades were similar to those at the Ganfeng and Lithium America Cauchi operation, which adjoins the Lake buildings.

“Lake foresees similar potential to Olaroz and Paso,” the company said.

Second platform to accelerate exploration and testing

Lake also procures a second rotating rig to potentially work alongside the diamond one to quickly quantify any identified brines, develop aquifers, and perform pumping tests.

In addition, passive seismic geophysical work is underway and could be followed by electromagnetic surveys in key areas.

Once the brines have been extracted, the samples will be tested using Lake’s direct lithium extraction methods, similar to previous tests on Kachi’s brines.

A scoping study will then be undertaken, and if a resource is successfully established, the pre-feasibility study work will be completed.

Growing demand

Lake chief executive Steve Promnitz said the company has received “increasing demand” from potential buyers looking for a “secure supply of high-quality, environmentally friendly lithium.”

This demand is what prompted the company to accelerate exploration activities at Olaroz, Cauchari and Paso.

Kachi Lithium Project

Exploration and development at Olaroz, Cauchari and Paso will continue alongside advanced activities at the flagship Lake project, Kachi.

Earlier this week, Lake noted that continued drilling at Kachi supported a doubling of projected future production to 50,000 tonnes per year of lithium carbonate equivalent.

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