Impact: Positive
Lake Resources announced an updated resource estimate at its Kachi Li brine project in Argentina. Total M&I+I resources increased by 53% to 8.1Mt LCE. We view this positively as growth in both M&I and inferred resources is indicative of ongoing expansion potential at Kachi. These substantially higher M&I resources are expected to feed into the upcoming DFS, anticipated in Q3/23. LKE has already helped de-risked the project technically by producing 2.5t LCE at its pilot plant developed in partnership with Lilac (read more). It is now moving from the pilot phase to the next phase of development. With some of the skepticism around the technology quelled, expressions of interest to fund project debt, and strategic off-takes in place, we believe LKE is well-positioned to move this project forward. While this resource should further boost investor confidence, all eyes remain on the DFS and project financing.