In the Quarterly Activities/Appendix 5B Cash Flow Report for the three months ending on 30 June 2023, Lake Resources (ASX:LKE, OTC:LLKKF) unveiled key highlights and significant progress made during the quarter.
Lake reported a substantial 37% increase in the measured, higher-grade resource at Kachi, supporting over 25 years of supply life. The recent JORC update also highlighted the growth of inferred resources at Kachi, indicating further expansion opportunities.
Following a rigorous project reassessment based on the expanding resource base, Lake unveiled a significant operational update on 19 June 2023. The update included revised project timelines and a two-phased approach to production, aimed at de-risking project execution while ensuring efficient and cleaner production of high-purity lithium. Lake uses disruptive ion exchange extraction technology from Lilac Solutions Inc. in California, a partner earning into the flagship Kachi Project.
Ms. Lindsay Bourg was appointed as Chief Accounting Officer, strengthening Lake's management team. With a cash balance of AUD 90.1 million and no debt at the end of June 2023, Lake is well-funded.
The company continues to progress from the evaluation and exploration phase to the development stage. Notable achievements during the quarter include third-party validation of 99.8% high purity lithium carbonate produced at Kachi and the successful extraction of 2,500 kg of LCE at the Demonstration Plant.
The Kachi Lithium Brine Project in Catamarca Province, Argentina, reported an increase in Measured and Indicated (M&I) resources to 2.93 million tonnes of lithium carbonate equivalent (LCE), with Inferred Resources of 5.18 million tonnes LCE. The resource remains open to further exploration potential, extending beyond 600 to 700 meters below ground surface.
Lake's phased approach to production involves two 25ktpa plants, providing flexibility and optionality for future expansion up to 50Ktpa. The project's DFS is expected to be completed and submitted in December 2023, with first lithium production anticipated in 2H 2027.
Key milestones over the next six months include completion of DFS Field Test Work, selection of FEED/EPCM contract partner, power solution selection, and preparations for the submission of the EIA in Q1 2024.
Lake Resources looks forward to providing monthly webcasts with CEO David Dickson and other management members, offering deeper insights into technical aspects of the Kachi project and addressing investor questions and topics.
