LKE, a clean lithium mine developer, will start drilling work on its three lithium projects next year to expand potential lithium resources.

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December 16, 2021, Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), a clean lithium mine development company, will begin new drilling in the Olaroz, Cauchari and Paso lithium salt water projects wholly owned by Lake from late January 2022, with a plan to drill 10 holes and 4000 meters, with the aim of expanding its lithium mine projects and potential resources. These projects are located in Jujuy province in northwestern Argentina, close to Allkem (Orocobre) 's Olaroz business and Lithium Americas (American lithium company)-Ganfeng Lithium's Cauchari project.

The drilling program is located in the three projects, starting in the northern part of the Olaroz lease, spanning 30 kilometers, and located on the east side of some established lithium production enterprises. The company is looking for a second rotary rig, which may work with diamond rigs to quickly quantify the salt water found, develop aquifers and do pumping tests. Passive source Earthquake geophysical exploration is currently under way, and once identified, detailed electromagnetic geophysical exploration may be carried out in key areas.

The salt water will then be sampled and tested by the environmentally friendly lithium direct extraction method, which is similar to the previous work done on lithium brine in the Kachi (Kachi) project. A general study is then conducted to expand future production, and Lake plans to begin a pre-feasibility study after defining resources.

Mr. Steve Promnitz, Managing Director of Lake, said: "potential underwriters are increasingly expressing a demand for high-quality, environmentally friendly and stable supply of lithium, which encourages Lake to drill and test its wholly owned Argentine saltwater projects other than Kage's flagship project.

Lake has previously drilled and identified several high-grade lithium salt zones within the 506m (102m-608m depth) of its Cauchari project. The drilling confirmed that the grade of lithium brine is similar to that of the adjacent Ganfeng / Millium production and development joint venture in Cauchari, and that lithium brine extends from these projects to Lake's leased land. The result of higher grade is more than 343 mg / L (from 117 m to 460 m), the average lithium content is 493 mg / L, and the highest is 540 mg / L. Lake expects Olaroz and Paso to have similar potential.

Lake has mining leases of more than 47000 hectares in three lithium salt water projects, Cauchari, Olaroz and Paso. Lake's lease site in Olaroz, north of Cauchari, stretches more than 30 kilometers and is located in the east and north of the adjacent Allkem (belonging to Orocobre) Olaroz lithium production lease.

Prior to the new drilling project, Lake's flagship Kage Lithium Mine project has carried out drilling and the development of a final feasibility study to support the goal of doubling production to meet the growing demand for the production of high-grade, battery-quality lithium using environmentally sustainable direct extraction processes. The new project enables Lake to expand production with the support of export credit agencies and international investors.

Previously, many analysts expected lithium demand to rise further, and major carmakers also expanded their production plans for the electric car (EV). The demand for lithium produced by Lake's environmentally sustainable lithium direct extraction process is all the more prominent.

"now is the best time to expand our resource base, and Argentina is getting more and more international investment because of the quality of its lithium! resources. Mr. Promnitz added:" after a recent visit to the project site and contact with local stakeholders, we are eager to strengthen our activities at the beginning of the new year to seize this window of opportunity for Lake. "