Lake Resources N.L. has upgraded its Kachi lithium brine resource in Argentina, increasing the Measured and Indicated lithium carbonate equivalent to 8.2 million tonnes, supported by new drilling data and enhanced lithium recovery technology.
- Measured and Indicated Resource increased to 8.2 Mt LCE
- Total lithium resource now 11.1 Mt LCE over 275 km²
- Incorporation of deeper drilling results to 600 m depth
- Improved lithium recovery with Lilac Gen4 ion-exchange media
- Environmental Impact Assessment progressing towards approval
Resource Upgrade and Project Confidence
Lake Resources N.L. (ASX – LKE) has announced a significant update to its flagship Kachi lithium brine project in Argentina’s Lithium Triangle, increasing the Measured and Indicated lithium carbonate equivalent (LCE) resource to 8.2 million tonnes from 7.3 million tonnes. This represents a more than 10% uplift, driven primarily by new drilling results extending the resource to a depth of 600 meters and refined geological modelling.
The total resource, including Inferred categories, now stands at 11.1 million tonnes LCE spread over 275 square kilometres. The upgrade reflects enhanced confidence in the continuity and grade of lithium-bearing brines, particularly in the southern sector of the salar, where recent drillholes K24D41 and K25D44 revealed higher-grade lithium zones averaging 274 to 292 mg/L lithium within the planned production intervals.
Technological Advances and Operational Implications
Complementing the resource upgrade, Lake Resources has integrated improvements in lithium recovery technology through Lilac Solutions’ Gen4 ion-exchange media. This next-generation media significantly boosts lithium extraction efficiency compared to the previous Gen3 iteration, enabling the company to optimize wellfield designs by reducing the number of extraction and injection wells required. Such advancements are expected to lower capital and operating costs, enhancing the project’s economic prospects.
The updated resource estimate will feed into ongoing hydrogeologic modelling and the Definitive Feasibility Study (DFS) update, which aims to refine capital expenditure and operational parameters. The project’s wellfield development plan, comprising 16 extraction and 21 injection wells, is designed to maintain reservoir pressure and minimize environmental impact, supporting sustainable lithium extraction.
Environmental and Regulatory Progress
Lake Resources is advancing its environmental and social governance (ESG) commitments alongside technical development. The Kachi Project lies within a Ramsar-designated wetland area, underscoring the importance of rigorous environmental management. The company has conducted comprehensive baseline studies covering biodiversity, hydrology, and community engagement, aligning with international standards such as the Equator Principles.
The Environmental Impact Assessment (EIA) was submitted in March 2024 and is currently under review by provincial authorities, with an anticipated Environmental Impact Declaration (EID) expected by mid-2025. Lake Resources is also progressing permitting for freshwater extraction and other operational requirements, aiming to ensure compliance and minimize ecological footprint.
Outlook and Exploration Potential
Beyond the upgraded resource, Lake Resources delineates an exploration target that extends laterally and at depth beyond current drilling, suggesting significant potential for further resource expansion. However, these targets remain conceptual, with additional drilling and testing planned only after initial operations commence. The company’s approach balances resource growth ambitions with prudent project development timelines.
With the resource upgrade and technological enhancements, Lake Resources strengthens the Kachi Project’s position as a sustainable and economically viable lithium source, poised to meet growing demand for high-purity battery materials with a low carbon footprint.
Bottom Line?
Lake Resources’ enhanced resource and extraction technology set the stage for a refined feasibility study and potential project acceleration, but environmental approvals and reserve updates remain critical next steps.
Questions in the middle?
- How will the updated resource estimate influence the timing and scale of Kachi’s production ramp-up?
- What impact will Lilac’s Gen4 media have on overall project economics and capital expenditure?
- When can investors expect the updated Ore Reserve and Definitive Feasibility Study incorporating this resource upgrade?