Lithium

Lake Resources kicks off demo plant operations, eyes on a catalyst rich December quarter

Wed 02 Nov 22, 11:08am (AEST)
A snapshot of a brine lake containing lithium where material has been mounded into small humps on the surface of a brine system
Source: iStock

Key Points

  • Lake Resources' demonstration plant successfully begins processing brines at the Kachi Project in Argentina
  • The company expects to ship lithium chloride in the next two weeks for conversion into lithium carbonate
  • Near-term catalysts include product qualifications with end users, Kachi's DFS and new management appointments

Lake Resources (ASX: LKE) has finally delivered a timely update for its lithium brine demonstration plant at the Kachi Project in Argentina. The company's shares rallied 5.2% as the market opened to a six week high.

The demonstration plant has successfully passed wet and dry commissioning hurdles and now processing Kachi brines.

“Just one month after the start of wet commissioning, we are already achieving 80 percent lithium recoveries even as we complete the commissioning process and increase recoveries," said David Snydacker, CEO of Lilac Solutions.

The ongoing test program is based on operating the demo plant for 1,000 hours (approx 41 days assuming 24/7 production) to produce its first 2,000 litres of lithium concentrate.

Next steps

Lake's technology partner, Lilac Solutions, said the first samples of lithium chloride will be shipped for conversion to lithium carbonate within two weeks.

The final lithium carbonate product will then be qualified by tier one battery makers and offtakers to validate product specifications.

In parallel, the company is looking to transition the test work into steady state, and then validate that process with a third party so that work on Kachi's Definitive Feasibility Study (DFS) can be completed.

The DFS is currently forecast to be complete in the fourth quarter of 2022 for the production of 50,000 tonnes per annum of lithium carbonate from Kachi.

Lake also noted plans to make "several new executive and board appointments before year end" as it transitions from exploration to development and production.

Its worth noting that the demo plant was expected to be delivered onsite and finish producing samples by the end of 2021. To date, the timeline has been pushed back at least three times. Notwithstanding Lake's history of missing deadlines, the company is pointing to a catalyst rich December quarter as it progresses the major milestones needed to kick off construction.

LKE share price chart
Lake Resources share price chart

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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