Lake Resources NL (LRE) Shares Fall 7% on Australian Stock Exchange
Lake Resources NL (LRE) is a lithium exploration company. It is developing projects in Argentina and conducting exploration for new lithium brine deposits. It has adopted cost-competitive direct extraction technology to produce high-purity lithium. Its goal is to increase the company’s market cap by producing lithium metal at an industrial scale.
Lake Resources NL is a lithium exploration company
Shares in Lake Resources NL have tumbled 17% over the past week, and are down another 7% on Monday. The company is primarily engaged in exploration activities for lithium brines, lithium hard rock projects, and other lithium-related minerals. Some of its projects include Olaroz/Cauchari, Paso, and the Catamarca Pegmatites.
The company’s projects are located in countries with stable mining jurisdictions, and it has an existing partnership in Argentina. Its Kachi project has a mineral resource estimate of 4.4 million tonnes of lithium carbonate equivalent. It also has a feasibility study for the production of 25,500 tonnes of battery-grade lithium carbonate. The company is working towards becoming a Tier One producer by developing a multi-asset base and advancing its projects in the Lithium Triangle.
It conducts exploration for new lithium brine projects
Currently, Lake Resources is advancing three new lithium brine projects. The Kachi Lithium Project, located about 100km south of the FMC Lithium Hombre Muerto project, hosts a mineral resource estimate of 4.4 million tonnes of lithium carbonate equivalent. It also has an inferred resource of 3.4 million tonnes.
The Cauchari Project, located in northern Argentina, has multiple high-grade lithium brine zones. The company has confirmed this potential with drilling over an interval of 506 meters, ranging from 102 to 608 meters. Lake also anticipates that similar grades will be present at its Olaroz project, which is a part of a 30-kilometre-long lease area.
It uses cost-competitive direct extraction technology to produce high purity lithium
The company aims to become an environmentally friendly, cost-competitive supplier of high purity lithium. Its projects are scalable, and the high-purity product is in high demand for electric vehicles and batteries. In addition to its own lithium projects, Lake has acquired a number of companies, including Millennial Lithium and Neo Lithium Corp., which have brine projects in Argentina.
While many lithium mines are in exploratory stages, most cannot meet the growing demand. The company’s direct extraction technology returns nearly all water to the source, and its process does not alter the chemistry of the brine. This results in a smaller carbon footprint, and reduced water use. It also benefits local farmers, who are affected by traditional mining methods.