Maiden Ore Reserve Defined at Flagship Kachi Project for Lake Resources NL
Lake Resources NL (ASX:LKE) is pleased to announce that a maiden Ore Reserve has been defined for its flagship Kachi Lithium Project in the Catamarca Province, Argentina.
The company commissioned an independent geology firm, DMN-AG (Germany) GmbH, to prepare a maiden Ore Reserve as part of the Preliminary Economic Assessment (PEA) that will be the foundation of a Mining Feasibility Study (MFS).
The Maiden Ore Reserve sits under the current Licence area for the Kachi Project and consists of 135 million tonnes of 5.04% lithium carbonate equivalent (LCE) from two deposits: Chubut and Esquel.
This Ore Reserve has been estimated using a cut-off grade of 1.3% LCE, and is classified as a Proven Ore Reserve. DMN-AG estimates that these two deposits could yield between 6.8 and 8.3 million tonnes of 5.0% LCE concentrate over a 12 year mine life.
Despite the historically high prices of lithium carbonate concentrate, Lake Resources NL’s Chairman, Simon Currie, believes the financial returns from this Ore Reserve are the key to unlocking the long-term development of the Kachi Project.
He stated: “This is a major milestone that paves the way for the full project development, commissioning of the plant and production of quality lithium products after two years of hard work. We have already identified and secured sufficient orders to ensure our customers are supplied on delivery of the Kachi Project”
The 12 year life of mine excludes the recently identified Samsung Zone which could extend the life of mine to 20 years in total.
Lake Resources NL is continuing work on the PEA to further improve the financial performance of the Kachi Project. Once the PEA is completed, the Maiden Ore Reserve will form the basis of the Mining Feasibility Study which is targeted for delivery by May 2021.
In the meantime, the company has established a long-term supply agreement with its clients to supply 1,000 tonnes of lithium concentrate plus 360 tonnes of battery grade lithium carbonate per annum for the life of the Kachi Project.
Lake Resources NL’s Kachi Lithium Project is a unique opportunity to supply premium-grade lithium concentrate to the local and international market. The Maiden Ore Reserve and the long-term supply agreement with Lake Resources NL’s clients further confirms the potential of the Kachi Project and its ability to successfully become a reliable and dependable source for the lithium industry.