(MENAFN- ABN Newswire)
Option Exercised on +70,000 Ha Pegmatite Lithium Catamarca Project Brisbane, Sep 25, 2018 AEST (ABN Newswire) - Argentine-focused lithium exploration and project development company Lake Resources NL ( <>
- Pegmatites in Catamarca a likely host for significant lithium mineralisation as spodumene.
- Decision made to exercise option and acquire project 100% of 70,000 hectare project.
- Recent field programme suggests a number of potential targets in a 150km mineralised belt.
- District in Catamarca has seen previous small scale production. Lake is using modern techniques to locate potential new large scale deposits.
A recent field programme has reinforced the view that the 150 kilometre-long belt favourably hosts significant lithium mineralisation as spodumene in large pegmatite swarms.
Lake signed an agreement with Argentine company, Petra Energy SA, in early 2017 over an area of exploration lease applications exceeding 70,000 hectares within a belt of outcropping pegmatites over 150 kilometres long.
A total of 19 million ordinary LKE shares will be issued to the vendors to acquire 100% of the local company and the project, of which 50% of the shares will be escrowed for 6 months. Previously only 1 million shares were issued, on signing of the option agreement in 2017, with the remainder to be issued in the coming days.
Recent field work in the Ancasti area has resulted in new exploration models being developed which clearly show potential for the belt to host large scale deposits. Previously, coarse grained spodumene crystals 30-70cm long had been identified in a number of locations. Further exploration activities will be conducted once the transaction is completed. Field based XRF analysis to vector in on potential new targets will be undertaken first, followed by trenching and auger sampling. Drill locations will then be defined by these results.
Managing Director Steve Promnitz said: "The pegmatite project in Catamarca is an enormous target with lots of exploration upside. We secured the project because the geology is very compelling and there is a history of production in the area. We have had considerable interest from third parties, both foreign and local Argentine companies, wanting to jointly explore Catamarca and we'll assess these carefully."
"Our in-country exploration team expects to commence work very soon on sampling and this will not inhibit progress being made at Kachi and Cauchari which are both on track and progressing to plan."
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About Lake Resources NL
The two flagship lithium brine projects are Kachi and Olaroz/Cauchari, located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy and Catamarca Provinces. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins SQM/Gangfeng/Lithium Americas Cauchari project, with high grade lithium (600 mg/L) with high flow rates drilled immediately across the lease boundary. Drilling is planned to commence in early October 2018 Cauchari with a three hole programme to intersect and extend the same lithium brine aquifers identified in the adjoining world-class lithium resource. Lake Resources aims to repeat the same high grade lithium results in its leases as the recent geophysics shows the likely extension of the same horizon into Lake's leases. Drilling will follow later at Olaroz once the methodology is proven at Cauchari.
The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project. Drilling at Kachi has confirmed a large lithium brine bearing basin over 22km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement in 2018, anticipated in Oct 2018. A new direct extraction method is being tested in partnership with Lilac Solutions which promises far higher recoveries and in significantly shorter timelines, which will be trialled in tandem with conventional methods as part of a PFS after the resource statement. Scope exists to unlock considerable value through partnerships and corporate deals in the near-term.
Significant corporate transactions continue in adjacent leases with development of SQM/Gangfeng/Lithium Americas Cauchari project. Gangfeng recently announced a US$237 million transaction to acquire 37% of the project from SQM, with a two year timeline to initial production. Projects nearby to Kachi and FMC's Hombre Muerto were recently acquired via a takeover offer of C$265 million for Lithium X, completed in March 2018, and the northern half of Galaxy's Sal de Vida resource, purchased for US$280 million by POSCO in June 2018. Major players in the lithium supply chain continue to secure prime projects in the best locations globally.
The demand for lithium continues to be strong for lithium ion batteries in electric vehicles, according to recent data from the leading independent battery minerals consultant - Benchmark Mineral Intelligence. Supply continues to be constrained suggesting good opportunities for upstream lithium companies for many years.
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