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Lake Resources drilling update on Kachi Lithium Brine Project

Mining News - Published on Thu, 28 Dec 2017

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Lithium exploration company Lake Resources NL announced that drilling is progressing well in the second drillhole, successfully intersecting concentrated brine horizons in saturated sands and silts below the 100%-owned Kachi Lithium Brine Project in Catamarca.

1. Drilling has intersected brine in a second drillhole within brines below the lithium bearing salt lake of the 100%-owned Kachi Lithium Brine Project in Catamarca Province, Argentina

2 The second diamond drillhole is below 125m depth in permeable sandy horizons containing brines with promising conductivities and densities

3. Initial assay results from the brines are anticipated in early January

These brines display encouraging conductivities and densities positive indicators for future results. Initial assay results are anticipated in early January. The second drill hole is at 126m depth and planned to continue to below 250m after the Christmas recess to test deeper aquifers. The first hole was terminated at 71m after testing the near surface aquifer. These holes are part of a maiden 1,000m diamond drilling programme. The programme can be extended pending the outcome of assay results.

After returning from site this week, Lake Resources' Managing Director Mr Promnitz said that "Drilling has intersected brine saturated sediments from a metre from surface, which includes significant permeable sands. The first set of assay results will be reported as soon as possible. Activity in the lithium sector has intensified with a neighbouring project under a takeover offer on market for CAD 265 million. This bodes well for Lake given the scale of the four projects in Argentina's Lithium triangle and the fact that they are 100% owned."

The Kachi Lithium Brine Project covers over 50,000 ha of mining leases owned 100% by Lake's Argentine subsidiary, Morena del Valle Minerals SA, over the centre of the known salt lakes in the deepest part of a large basin. Surface sampling has revealed positive lithium results in conductive brines which will be expanded through the drilling program and geophysics.

The company has a focus on an inclusive approach with local communities together with appropriate environmental management. The Kachi Project was selected by the State of Catamarca to be accelerated, together with a small group of energy and mining projects in the province, to ensure appropriate development. A Letter of Intent was signed with Catamarca Province to facilitate the project through various permitting stages from exploration to production which bodes well for the future.

Meanwhile, Lake Resources NL is undertaking an aggressive exploration programme to explore and develop prime lithium projects in Argentina, owned 100%, among some of the largest players in the lithium sector. Lake holds one of the largest lithium tenement packages in Argentina (~170,000Ha) secured prior to a significant ‘rush’ by major companies with three key lithium brine projects located in the Lithium Triangle which produces half of the world’s lithium. Lake also holds one large package of lithium pegmatite properties which were an unappreciated source of lithium in Argentina until recently.

The three key brine projects, Olaroz/Cauchari, Paso and Kachi, have similar settings to major world class brine projects being developed in the highly prospective Jujuy and Catamarca Provinces. One project is located next to Orocobre’s Olaroz lithium production and SQM/Lithium Americas Cauchari project. The Kachi project covers 50,000 Ha over a salt lake south of FMC’s lithium operation and near Albemarle’s Antofalla project. Exploration and permitting will provide several catalysts for the company’s growth as these areas are assessed for major discoveries.

Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over USD 300 million and Advantage Lithium’s equity transaction in some of Orocobre’s leases. LSC Lithium has also raised over USD 60 million on a large lease package in similar areas as Lake’s properties.

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Posted By : Rabi Wangkhem on Thu, 28 Dec 2017
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