Lake Resources has increased its Measured and Indicated lithium resource at the Kachi Project in Argentina to 8.2 million tonnes LCE, revealing higher-grade lithium zones and enhanced recovery technology. This update strengthens the project's economic outlook amid ongoing feasibility and environmental assessments.
- Measured and Indicated Resource increased to 8.2 Mt LCE
- Total lithium resource now 11.1 Mt LCE over 275 km²
- Deeper drilling reveals higher-grade lithium zones
- Improved lithium recovery with Lilac Solutions’ Gen4 media
- Supports updated feasibility studies and future Ore Reserve revision
Resource Growth and Geological Insights
Lake Resources has announced a significant update to its Kachi lithium brine project in Argentina, increasing the Measured and Indicated lithium carbonate equivalent (LCE) resource by approximately 10% to 8.2 million tonnes. This growth is driven by new drilling results, particularly from the deep drillhole K25D44, which extended resource definition to 600 meters depth and uncovered a higher-grade lithium zone in the southern sector of the salar.
The total lithium resource now stands at 11.1 million tonnes LCE, spread over an expansive 275 square kilometers. The updated geological model incorporates detailed lithium concentration data and drainable porosity values, which are critical for refining future Ore Reserve estimates and hydrogeologic models.
Technological Advances Enhance Recovery Prospects
Complementing the resource expansion, Lake Resources has integrated Lilac Solutions’ Gen4 ion-exchange media into its extraction process. This upgrade significantly improves lithium recovery rates compared to the previous Gen3 technology, potentially reducing the number of extraction and injection wells required. Such efficiency gains are expected to lower capital and operating costs, enhancing the project's economic viability.
The project’s pilot plant continues to operate on-site, validating the direct lithium extraction (DLE) technology that promises a more sustainable and environmentally friendly lithium production method, aligning with Lake Resources’ commitment to ESG principles.
Ongoing Feasibility and Environmental Progress
This resource update feeds directly into the ongoing Phase 1 Definitive Feasibility Study (DFS), which is revising capital and operating expenditure estimates based on the enhanced resource and improved recovery technology. While the Ore Reserve estimate remains based on the previous resource update, an updated reserve reflecting the new data is planned.
Environmental and social governance efforts continue in parallel, with the Environmental Impact Assessment (EIA) submitted and under review by Catamarca authorities. The project area lies within a Ramsar wetland site, prompting comprehensive baseline studies and management plans to minimize ecological impact and ensure community engagement.
Strategic Implications for Investors and Market
Lake Resources’ Kachi Project is now positioned with a stronger resource base and improved extraction technology, enhancing its attractiveness in the competitive lithium market. The combination of deeper, higher-grade resources and more efficient recovery methods could translate into a more robust project economics and a faster path to production.
Investors should watch closely for the upcoming Ore Reserve update and the results of the ongoing feasibility and environmental approvals, which will be pivotal in advancing the project towards commercialisation.
Bottom Line?
With a larger, higher-grade resource and cutting-edge extraction technology, Lake Resources is poised to sharpen Kachi’s competitive edge in the lithium market.
Questions in the middle?
- How will the improved recovery rates from Lilac’s Gen4 media impact overall project economics?
- When can investors expect the updated Ore Reserve estimate reflecting the new resource data?
- What are the potential regulatory hurdles remaining for environmental approvals in this Ramsar-designated area?