Competitive lithium resource pioneer Lake Resources [ASX:LKE] and technology partner Lilac Solutions have uplifted investors with the latest news of their shared Kachi lithium brine project in northwest Argentina.
The lithium producing pioneers have announced their demonstration plant has now operated continuously for more than 1,000 hours to date — ticking off its proposed requirement and hinting at a new era of unchallenged lithium production at the project.
LKE’s share price was boosted by more than 7%, trading at 88 cents by Tuesday afternoon.
In the year so far, LKE has surged by more than 10% despite taking a 6% hit over the last month.
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Kachi achieves new milestone
LKE and extraction tech partner Lilac Solutions have revealed the Kachi Project has reached timely achievements of key targets set out more than two years ago and revised in late 2022.
The lithium company was proud to show that the Demonstration Plant has operated for 1,000 consecutive hours and produced 40,000 litres of lithium chloride eluate as at December 31, 2022.
The Kachi Demonstration Plant has now met all key testing milestones as agreed by the partners. This means the lithium chloride product can now be shipped to Saltworks for conversion into lithium carbonate and further tested for its purity.
Lake’s CEO and Managing Director David Dickson demonstrated his pleasure by commenting:
‘Lilac has proven to be an exceptional partner to work with in our joint pursuit of the efficient and cleaner delivery of high-quality lithium, which is in increasingly high demand by battery makers.
‘We are pleased with our accomplishments to date and are intently focused on the next stages of this project. Above all, we are proud of the work we and Lilac have achieved thus far to innovate the production of lithium in a way that is inclusive and respectful of the local communities in which we operate, and protective of the environment.’
However, all those who were following the LKE-Lilac saga last year would know things were not always so rosy.
The Kachi project was a topic of some contention later in 2022 when the two partners were found to be arguing over key performance deadlines, not so long after Lake Resources was forced to defend their methods against some unfortunate claims made by J Capital.
A fresh start for Kachi
Last year Lake Resources may have been considering the need to exercise certain buyback rights from Lilac, but today marks validation of their decision to carry on. The company is also reaching out to shareholders today.
Both parties are evidently reunited in their aims, displaying their ‘one team’ approach to the project with a revised, achievable timeline which has been emphasised today.
Kachi’s aim remains a world-class lithium development project hoped to lead the industry in high-quality lithium production with little carbon footprint.
Lilac Solutions’ CEO David Snydacker concluded with:
‘Lilac’s ion exchange technology is revolutionizing lithium extraction, and we are very excited to ship these first truckloads of lithium chloride produced on site at the Kachi project. Increasing the global supply of lithium is critical for our energy transformation, and we are proud of our progress in building an environmentally- and socially responsible lithium supply chain. We look forward to future achievements alongside Lake Resources.’
An Aussie commodity boom is incoming
Our resources expert and trained geologist, James Cooper, thinks the Australian resources sector is set to enter a new commodities boom brought on by the ‘Age of Scarcity’.
Similar patterns that occurred 20 years ago are happening again.
James is convinced ‘the gears are in motion for another multi-year boom in commodities.’
A boom where Australia (and ASX stocks) stands to benefit…
The next big mining boom is predicted to happen in the next few years.
You can access a recent report by James on exactly that topic AND access an exclusive video on his personalised ‘attack plan’ right here.
If that isn’t enough to sate your curiosity, we can also share with you a recent interview with James and Greg at Ausbiz at the end of last year.
Regards,
Mahlia Stewart
For Money Morning
