The PFS for Kachi, located in Argentina’s Catamarca province next to operations from five top producers, estimates capital costs of US$544 million.

Australia-listed Lake Resources (ASX:LKE) has released a prefeasibility study (PFS) for its Kachi lithium brine project in Argentina, estimating capital costs of US$544 million.

During its initial 25 years, Kachi is expected to produce 25,500 tonnes of battery-grade lithium carbonate equivalent (LCE) per year by direct extraction at an operating cost (OPEX) of US$4,178 per tonne. The study was based only on Kachi’s indicated resource of 1.01 million tonnes LCE at 290 mg/L lithium.

“The PFS highlights the cost competitive nature and scale of the flagship Kachi project using direct extraction, but has the benefit of producing high-purity product capable of attracting premium pricing, while being a leader in sustainable lithium desired by Tier-1 electric vehicle makers,” Managing Director Steve Promnitz said in an April 30 release.

Lake Resources has partnered with Lilac Solutions, which has received US$20 million in backing from the Bill Gates-led Breakthrough Fund to test a direct lithium extraction technology based on ion exchange; Lilac is also supported by MIT’s The Engine Fund. Results were incorporated into the PFS, which focuses on the engineering and costing of preferred process design options.

“With this PFS, we have demonstrated a non-utilities OPEX of US$2,500 per tonne of lithium carbonate. The remaining 40 percent of OPEX is primarily due to energy from natural gas at US$21/mmBTU. Given the excellent solar resource on site, we have a great opportunity to incorporate solar PV and reduce OPEX,” Lilac Solutions CEO Dave Snydacker said.

He added that opportunities also exist to reduce capital costs in upcoming engineering studies. Lilac’s direct lithium extraction process takes hours and not the standard nine to 18 months.

Lake Resources’ Kachi is located in Argentina’s Catamarca province, next to operations from five top producers, including producing assets from Livent (NYSE:LTHM) and Orocobre (ASX:ORE,TSX:ORL).

The recently released PFS indicates a pre-tax net present value (NPV) at an 8 percent discount of US$1,050 million and a 25 percent internal rate of return (IRR); its post-tax NPV comes in at US$748 million at an 8 percent discount with a 22 percent IRR.

Annual earnings before interest, taxes, depreciation and amortization (EBITDA) for the project is US$155 million, with life-of-project EBITDA of US$3,890 million.

Looking ahead, Promnitz said the PFS, together with samples from the pilot plant, will help advance discussions with offtakers and financiers.

“What’s important about the PFS is that shows that this technology is commercial and it shows that it’s cost-competitive with brine produces just on an AISC basis,” Prominiz said during a conference call. “This proves to the market that this is a major project, and we don’t just have one — we’ve got four of them.”

Lake Resources’ flagship Kachi asset is one of three brine projects 100 percent owned by the company in Argentina. It has over 200,000 hectares of leases, including one hard-rock project.

The next steps for Kachi involve delivering product samples from pilot plant modules to potential offtakers. Lake Resources also believes the PFS results indicate the need for a definitive feasibility study (DFS) looking at further opportunities to lower operating and capital costs, potentially with a staged start at 10,000 tonnes per year. The completion of a DFS is targeted potentially by the middle of next year.

Shares of Lake Resources jumped 10 percent following the news, and although they retreated on Monday (May 4), the stock is currently at AU$0.03 — up 10 percent year-to-date.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Lake Resources is a client of the Investing News Network. This article is not paid-for content.

Lake Resources NL Bonus Issue to Shareholders

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

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As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

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Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

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Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

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Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

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“We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external engagement. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long term, with the right teams in place to unleash our full potential.”

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Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

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Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

Keep reading... Show less

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Highlights of the quarter include:

– Assay results returned for infill RC drilling testing the gap between oxide and deeper fresh rock high-grade gold mineralisation at Kat Gap.

Keep reading... Show less

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Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

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A key focus of the new CFO will be to guide a panel of international project financiers to successfully secure funding for Lake’s lithium production.

His other key role will be to develop and assist Lake’s team in Argentina to organise development activities and lithium production. He will also serve as joint Company Secretary.

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