The Lake Resouces NL [ASX:LKE] share price was up close to 9% on early trade today after expanding their drilling program at Kachi.
Lake Resources is an Australian clean lithium developer. Lake’s main project is the Kachi Lithium Brine Project in Argentina. It expands over 74,000 hectares of leases and has indicated and inferred resources of 4.4 Mt LCE.
Lake expands drilling and testing at Kachi
Lake said today they’ll be expanding their drilling and testing past what’s required for its Definitive Feasibility Study (DFS) at Kachi.
The goal is to ramp-up the conversion of inferred resources to measured and indicated resources and to expand beyond the 25,500 tonnes per annum of lithium carbonate production they had planned for in their DFS.
They’ll be expanding the program through a diamond drill program of four wells from four platforms for 1,600m along with brine and sediment sampling and pump testing to refine resource estimations.
Lake Resource’s Managing Director, Steve Promnitz said:
‘We are witnessing considerable interest from potential off-takers for a high purity, sustainable product like we have at Kachi. Volkswagen alone has flagged moves to consume two-thirds of current lithium production by 2030 with its new battery gigafactories, adding to the investments by other major EV and battery makers. There is no question that the billions of dollars being invested in the world’s clean energy drive require an increased supply of the necessary battery materials, sustainably sourced. That is exactly what Lake intends to deliver and importantly our projects are highly scalable.’
There’s been plenty of interest on lithium, with prices increasing on concerns there won’t be enough supply to cover demand as electric vehicles rollout.
What could happen next LKE share price?
Lake says they are ready to start drilling in about two weeks. At the end of March, Lake had $24 million, which the company confirmed should be enough to get Kachi through construction phase in 2022.
Lake Resources went up to 25 cents on an early trade today. At time of writing, LKE’s share price is at 23.5 cents.
The company has been on quite a run since the beginning of the year when it was trading at only 8 cents.
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