Lake Resources begins DFS for Kachi Lithium Brine Project

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has formally begun preparing a definitive feasibility study (DFS) for Kachi Lithium Brine Project in South America’s Lithium Triangle from which the company aims to produce clean lithium for the growing new-age battery market. The formal DFS process started with the appointment of Hatch as the lead consultant. This follows completion of a compelling and robust pre-feasibility study (PFS) that outlined the potential technical and economic viability of the project using the sustainable direct lithium extraction process of technology partner Lilac Solutions Inc. Subsequently, the project’s potential to deliver high purity lithium carbonate (99.97% Li2CO3) required by battery makers was demonstrated by Hazen Research. The resulting product has been sent to Novonix for incorporation into new-age batteries. DFS a “key step” Lake Resources managing director Steve Promnitz said: “The formal commencement of the DFS is a key step for Lake to deliver the Kachi project into production with ESG credentials in demand as the transition to EVs gathers pace. “The bridging studies have been underway since the PFS and now the formal engagement of Hatch has occurred. “ An important milestone The DFS is expected to be an important milestone in the development of the Kachi Lithium Brine Project as a sustainable and commercially successful producer of high-quality lithium product for the battery market. Lake will carry out associated workstreams in parallel with the DFS, including an environmental impact study, continued community engagement and a demonstration plant to be commissioned on-site later in 2021. To manage the DFS and related workstreams, Lake Resources has appointed Nicholas Lindsay as technical director. A former non-executive director of the company, Lindsay is experienced in feasibility studies in South America and is confidently expected to deliver the Kachi DFS by quarter one of 2022. Promnitz said: “Nick Lindsay’s assistance with the PFS was invaluable and will now be expanded upon in the DFS.” Using disruptive clean technology The company’s strategy is to produce sustainable, high purity lithium from the flagship Kachi Project. A key component of this strategy is utilising the clean direct lithium extraction method developed by Lilac and which is being successfully tested in ongoing work with Kachi brines. Lake is committed to being an efficient, responsibly sourced, environmentally friendly and cost-competitive supplier of high-purity lithium, which is readily scalable, and in-demand from Tier-1 electric vehicle makers and battery makers. The company has a market cap of approximately A$66 million and shares today have been as much as 7% higher to A$0.085.