Name of the Project
Kachi lithium brine project.

Location
The project is located in Catamarca, Argentina.

Project Owner/s
Lake Resources.

Project Description
A prefeasibility study (PFS) has demonstrated Kachi’s potential to deliver high-purity product required by battery makers, based on a sustainable and scalable process.

The PFS envisages a long-life, low-cost operation, with a production target of 25 500 t/y of battery-grade lithium carbonate using direct lithium extraction technology based on ion exchange, which, in turn, is based on an indi­cated resource of one-million tonnes lithium car­bonate equivalent.

The process involves the treatment of about 23-million cubic metres a year of brine at 250 g/ℓ lithium, with an overall plant recovery of 83.2%. The eluate from the process is further concentrated and purified, and then fed into a conventional lithium carbonate plant.

No solvent extraction plant is required to remove boron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 25%, with a payback from first product delivery of five years.

Capital Expenditure
The project entails an investment of $544-million.

Planned Start/End Date
Not stated.

Latest Developments
Lake Resources will raise A$20.6-million in a share placement to fund the Kachi project.

The company said on January 25 that it would issue about 125-million new shares, at an offer price of 16.5c each to institutional investors, with one attaching option issued for every two new shares on offer, with an exercise price of 30c each and a two-year expiry.

The company will use proceeds raised to operate the lithium chloride direct extraction pilot plant, in California, commission the demonstration plant on site at Kachi to produce lager samples for potential offtakers, complete the definitive feasibility study for Kachi, along with the environmental- and social-impact study, and fund exploration and evaluation studies across all its projects.

“Securing these funds delivers certainty to deliver the flagship Kachi project through the definitive feasibility study amid the rapid growth of the clean energy sector,” Lake MD Steve Promnitz has said.

“This transaction places the company in its strongest financial position ever. Lake will hold in excess of A$25-million following this placement and anticipates a further A$6-million to be added by July as existing options convert.”

Key Contracts, Suppliers and Consultants
Lilac Solutions (lithium extraction testwork) and Hatch (engineering and design services).

Contact Details for Project Information
Lake Wells, tel +61 2 9299 9690 or email hello@lakeresources.com.au.