logo-loader
Lake Resources NL

Lake Resources shares rise after confirming further high-grade lithium brine at Cauchari

Results provide further confirmation of the continuity of Lake drilling in the same basin with similar brines as adjoining world-class projects.

project area
The company’s shares are trading about 8% higher intra-day, at 8.3 cents

Lake Resources NL (ASX:LKE) has confirmed further high-grade lithium brine results from high flow brines at its Cauchari Lithium Brine Project in Argentina.

These ongoing brine results show continuity over a series of horizons with adjoining major projects, further increasing Lake’s confidence to replicate the success of nearby multi-billion dollar projects in the heart of the Lithium Triangle.

Cauchari Lithium Project, with adjoining Ganfeng / Lithium Americas project and Orocobre / Advantage Lithium project showing interpreted West Fan Unit and the targeted Lower Sand Unit

High grade conductive brines with lithium values up to 538 mg/L were returned from high flow brines at a depth of 261m with low Mg/Li ratios.

These results over a series of horizons are similar to lithium brine horizons announced from the adjoining preproduction area, showing continuity with Ganfeng/Lithium Americas (LAC) and the Advantage Lithium (AAL)/ Orocobre joint venture that are attracting significant corporate transactions.

Lake is clearly drilling in the same basin with similar brines, with even better results anticipated at depth.

Foraco diamond drill rig at Cauchari

Lake managing director Steve Promnitz said: “Lake is on track to record a major discovery here at Cauchari, with results showing continuity of lithium brines from the major projects located nearby that are currently proceeding towards production.

“As we advance towards the target depth, these results auger well for improving success at depth, and later at the Olaroz project, where the company has a 30 kilometre belt as an extension to the adjoining production area.

“Cauchari is rapidly gaining momentum as a highly valuable project for Lake, adding to our portfolio of 100% owned projects in the heart of the Lithium Triangle, including Olaroz and the world-class Kachi project.

“With talks progressing with potential development partners, we are in an excellent position to deliver increased value for shareholders.”

Target is a lithium-rich sand horizon

These are preliminary results and larger samples will be collected once the hole is completed.

The diamond drill rig is now below 290 metres, although drilling has been challenging requiring more time due to high fluid pressures.

The target is a sand horizon estimated between 350-450 metres which has recorded higher lithium values and fluid flows in the adjoining project.

The latest results follow increased investor support for Lake, with the company recently attracting about $2.7 million in new funding from offshore and local sophisticated and professional investors.

READ: Lake Resources upsized $2.7 million placement to accelerate lithium drilling

These funds will allow for an acceleration of drilling at Cauchari, to be followed by drilling at Lake’s equally prospective Olaroz project.

Quick facts: Lake Resources NL

Price: $0.06

Market: ASX
Market Cap: $28.69 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

'May only be a matter of time' before Uranium price recovery with...

Mining Capital's Alastair Ford discusses the planned slow down in production from Kazatomprom (LON:KAP). The miner's looking to cut output from its Kazakh mines by around 20% through to 2021. He says that extends the timeframe of its previous production curtailment by a further year, and...

2 days, 4 hours ago

3 min read