Overview

The electrical automobile increase is unstoppable. Battery-powered automobiles might attain a 40 percent increase in global sales and the demand for Lithium is predicted to double to 1.5 million tonnes by 2027. The bullish outlook could possibly be traced again to lithium-ion battery’s capacity to cost quicker and retailer greater energy capability in a lighter package deal.

Though Australia, Chile and China have lengthy been the world’s prime lithium producers for years, Argentina has now emerged at the forefront accounting for 21 p.c of the world’s reserves. The nation’s lithium mining pipeline consists of two which might be presently operational, 13 deliberate and dozens into consideration.

Lake Sources (ASX: LKE,OTCQB:LLKKF) is a lithium improvement firm centered on producing high-purity, sustainable lithium at a low price from its 5 wholly owned lithium brine tasks in Argentina. The tasks lie inside one of the sizable, wholly owned land packages amongst the biggest gamers throughout the Lithium Triangle — residence to 40 p.c of the world’s lithium provide.

Lake Sources has 5 lithium tasks within the coronary heart of the Lithium Triangle however is primarily advancing its wholly owned Kachi lithium venture, roughly 100 kilometers south of the FMC Lithium (NYSE: LTHM) Hombre Muerto lithium brine manufacturing website. The property hosts a 2018 mineral useful resource estimate of 4.4 million tonnes of contained lithium carbonate equal. The report outlines an indicated useful resource of 1 million tonnes of lithium carbonate equal, and an inferred useful resource of three.4 million tonnes lithium carbonate equal.

In March 2021, Lake Sources launched a pre-feasibility study (PFS) for its Kachi lithium venture, which indicated an annual manufacturing goal of roughly 25,500 tonnes of battery-grade lithium carbonate utilizing Lilac Options’ direct lithium extraction (DLE) Expertise. The research was primarily based on Kachi’s indicated useful resource of 1.01 million tonnes lithium carbon equal (LCE) at 290 mg/L lithium. The research tasks an working price of US$4,178 per tonne, totalling roughly US$544 million in whole capital bills.

Lake Sources has partnered with Lilac Options to construct a direct extraction pilot plant on the Kachi venture. Lilac Options has developed a proprietary ion-exchange technology for the extraction of lithium from brine assets. It’s able to reaching excessive recoveries, at minimal price, with speedy processing occasions, all whereas offering quite a few environmental advantages — notably water preservation. The proposed plant entails strategic partnerships with Ford Motor and Hanwa. Katchi goals to offer the world’s cleanest lithium utilizing its distinctive process.

Lake Sources announced in 2022 that the modular demonstration plant designed and constructed by the engineering crew at Lilac Options has been dispatched from California, USA to the Kachi Undertaking in Argentina. The demonstration plant will function for round 3 to 4 months to supply lithium chloride (eluate) representing 2.5 tonnes of lithium carbonate.

Lake Sources has appointed Hazen Analysis, an impartial assay laboratory primarily based in Colorado, USA,, to supply bigger samples of its battery-quality lithium carbonate. By its partnership with Hazen, Lake Sources intends to supply its product to potential off-takers and different events. Along with its partnerships with Hazen and Lilac, Lake Sources has appointed Canadian agency Novonix Battery Know-how Options, a Nova Scotia-based impartial testing and improvement laboratory, to create lithium battery test cells utilizing Lake’s lithium carbonate.

The Cauchari and Olaroz lithium brine tasks are adjoining to 1 one other and are surrounded by main gamers similar to Lithium Americas (TSXV:LAC), SQM (NYSE:SQM), Ganfeng Lithium, and Benefit Lithium (TSXV:AAL). Drilling at Cauchari has up to now returned values as much as 540 mg/L lithium on the venture. Lake Sources hopes to show that each tasks are extensions of the neighbouring tasks.

Lake Sources’ wholly owned Kachi lithium brine venture encompasses 36 mining leases that cowl 69,000 hectares in Catamarca province, Argentina. The property is roughly 100 kilometers south of the Livent (NYSE:LTHM) Hombre Muerto lithium brine manufacturing website. The Kachi property additionally covers a 20-kilometer by 15-kilometer salt lake.

In November 2018, Lake Sources released its maiden useful resource for the Kachi venture. The report outlined a useful resource estimate of 4.4 million tonnes of contained lithium carbonate equal. The report included an indicated useful resource of 1 million tonnes of lithium carbonate equal and an inferred useful resource of three.4 million tonnes lithium carbonate equal.

Direct extraction pilot plant

Lake Sources partnered with Lilac Options to additional the event of the Kachi venture. Lilac Options has developed a proprietary ion-exchange expertise for the extraction of lithium from brine assets.

The expertise can obtain excessive recoveries with minimal prices and has speedy processing occasions when in comparison with utilizing evaporation ponds. It additionally gives quite a few environmental advantages because it eliminates the necessity for evaporation ponds and reduces the footprint of the operation. The expertise additionally permits for the remaining brine to be re-injected into the aquifer.

Lilac and Lake Sources has commenced a pilot plant at Kachi to reveal the viability of the expertise. Lake Sources expects to have the ability to enhance its lithium grade to 25,000 mg/L lithium and produce a clear lithium hydroxide or lithium carbonate product for the battery market.

Prefeasibility Research

In Might 2020 Lake Sources launched a PFS on the Kachi property with a goal of manufacturing 25,500 tonnes of battery-grade lithium carbonate equal (LCE), utilizing Lilac’s direct extraction expertise at an working price of US$4,178 per tonne. The research was primarily based on an indicated useful resource of 1.01 million tonnes LCE at 290 mg/L lithium. Lake is presently working in direction of a definitive feasibility study on the Kachi property.

Upcoming Alternatives

The corporate can be in discussions with numerous downstream companions within the battery trade to safe future offtake agreements and extra funding for the venture’s improvement. In 2022, the corporate introduced partnership alternatives with Ford Motor and Hanwa, a Japan-based dealer. The non-binding memorandums of understanding for offtake proposal of the clear lithium gives significant monetary alternatives for the corporate. Lilac’s ion alternate is confirmed by way of in depth testing on the pilot plant, permitting faster-to-market, high-recovery options which might be environmentally sustainable.

Cauchari-Olaroz-Paso Lithium Brine Initiatives

The wholly owned Cauchari, Olaroz and Paso lithium brine tasks are adjoining to 1 one other and surrounded by important gamers in Jujuy province in Argentina. The tasks are adjoining to the Orocobre’s Olaroz lithium brine operations and tasks beneath improvement by Lithium Americas (ICX:LAC), SQM (NYSE:SQM), Ganfeng Lithium and Benefit Lithium.

Exploration

Lake Sources started drilling on the Cauchari venture in April 2019. The corporate encountered conductive lithium brines with values as much as 480 mg/L of lithium at depths of roughly 186 meters at Cauchari. The outcomes in contrast favourably with the outcomes from close by pre-production areas which might be presently beneath improvement.

The 290-square-kilometer Paso lithium brine venture is a completely owned venture within the Jujuy Province in Argentina. The province is adjoining to the border of Chile and is instantly west of Orocobre’s Olaroz lithium brine operations. Lake Sources’ preliminary sampling program returned elevated outcomes.

Drilling has also been advancing at each the Olaroz and Paso tasks. Assay outcomes are anticipated to turn out to be accessible throughout the third quarter of 2022. The drill wells are designed as a part of an accelerated program throughout all tasks within the space to quantify brines recognized, develop aquifers, and conduct pump checks with information for preliminary feasibility research. Rotary wells might be adopted by diamond holes. Brines might be sampled and examined with direct lithium extraction strategies, just like earlier work carried out on Kachi venture lithium brines.

Catamarca

The 72,000-hectare Catamarca pegmatite venture is situated in Ancasti, Catamarca Province, and is 50 kilometers east of town Catamarca. The venture is accessible year-round. The realm has hosted historic, small-scale manufacturing for lithium-bearing spodumene pegmatites over a 150-kilometer space. Latin Sources (ASX:LRS) holds mining leases adjoining to the property and has obtained outcomes of 4.9 p.c lithium oxide and seven.1 p.c lithium oxide from previous mine workings.

Administration Staff

David Dickson – CEO and Managing Director

With greater than 30 years’ expertise in course of expertise, engineering, building, and engineering, procurement and building (EPC) price administration throughout the vitality sector, David Dickson has a confirmed observe report in efficiently delivering multibillion greenback useful resource tasks. He’s presently a senior advisor to personal fairness agency Quantum Vitality Companions, a worldwide supplier of personal capital to the responsibly sourced vitality and vitality transition and decarbonization sectors, and an govt strategic advisor at funding agency The Chatterjee Group. He’s the previous CEO of world engineering and building agency McDermott Worldwide, the place, by way of his seven-year tenure he constructed a powerful management crew that steered the corporate into worthwhile new markets, oversaw McDermott’s merger with CB&I, and finally grew the enterprise to greater than 30,000 staff throughout 54 worldwide markets.

Previous to McDermott, Dickson was beforehand president of Technip USA, overseeing advertising and marketing and operations in North, Central and South America. He was additionally appointed to the board of the US Nationwide Security Council and a member of the World Hydrogen Council.

Stuart Crow – Non-Government Chairman

Stuart Crow has world expertise in monetary companies, company finance, investor relations, worldwide markets, wage packaging, and stockbroking. He’s captivated with aiding rising and listed firms in attracting traders and capital. Crow has gained important expertise by proudly owning and working his personal companies.

Dr. Nick Lindsay – Government Technical Director

Dr. Nick Lindsay has over 25 years of expertise in Argentina, Chile and Peru, performing in technical and industrial roles within the assets sector with main and mid-tier firms, in addition to start-ups. He has a bachelor of Science in geology with honours, and a grasp enterprise administration. With a PhD in metallurgy and supplies engineering, Lindsay is an knowledgeable within the area. A fluent Spanish speaker, he has efficiently taken firms in South America, similar to Laguna Sources, which he led as managing director, from inception to itemizing, by way of to improvement and subsequent acquisition. Lindsay is presently CEO of Manuka Sources, an unlisted firm, and was beforehand the president of Chilean operations for Kingsgate Consolidated. He’s a member of the AusIMM and the AIG.

Dr. Robert Trzebski – Non-Government Director

Dr. Robert Trzebski is presently chief working officer of Austmine and holds a level in geology, a grasp’s diploma in venture administration, a PhD in geophysics, and has greater than 30 years {of professional} expertise in venture administration and mining companies. He holds appreciable working and industrial expertise in Argentina and Chile, as a non-executive director of Austral Gold since 2007, listed on the ASX and TSXV. He’s chairman of the audit and threat committee at Austral Gold. His function with Austmine has allowed him to develop appreciable contacts throughout the working and expertise house of the worldwide assets trade. Trzebski can be a fellow of the Australian Institute of Mining and Metallurgy and can be fluent in Spanish, German and English.

Amalia Sáenz – Non-Government Director

Amalia Sáenz was appointed a non-executive director in July 2021. An skilled vitality and pure assets lawyer primarily based in Buenos Aires, Sáenz is aiding Lake Sources and its native crew in Argentina to have interaction with native stakeholders and put together for the event of unpolluted lithium in Argentina. She is a companion on the legislation agency, Zang, Bergel & Viñes in Buenos Aires, the place she leads the agency’s vitality and pure assets follow. A number one member of the Affiliation of Worldwide Petroleum Negotiators, Sáenz has in depth expertise in vitality and assets, together with mergers and acquisitions, financing, joint ventures and working agreements in Argentina. She has additionally labored in Central Asia and the UK, gaining expertise in exploration and manufacturing improvement throughout worldwide borders and cultures.

Scott Munro – Senior Vice President – Know-how, Technique and Threat

Scott Munro has important expertise and abilities in strategic partnerships, company strategic planning, and expertise improvement. He has expertise in creating new enterprise items and rising them quickly to ship large-scale industrial developments. Munro has overseen the profitable supply of large-scale industrial tasks in worldwide markets and has broad expertise together with common administration, strategic planning, partnership improvement and overseeing expertise improvement. His prior roles included company improvement officer at McDermott Worldwide with duty for Technique Growth following a interval as enterprise unit chief for the corporate’s Americas, Europe, and Africa (AEA) Enterprise Unit and overseeing its re-entry into these geographical areas.

Peter Neilsen – CFO and Firm Secretary

Peter Neilsen is a chartered accountant with greater than 20 years’ expertise in all sides of economic administration, asset administration, and management. He has served in a variety of positions together with as CFO, firm secretary, finance supervisor, and different senior govt positions for quite a lot of listed and unlisted firms within the vitality and pure assets sector. Among the many firms Neilson has labored with are Barrick, Xstrata and Spherical Oak. He has been concerned in lowering working bills as much as AU$100M by way of price evaluation, efficiency enhancements and contract negotiations, acquisitions of as much as $80M and managed revenues in extra of AU$5 billion.

Sean Miller – Company Growth Officer

Sean Miller has important expertise and abilities in venture execution, provide chains, contracts and procurement, and venture optimisation. He has overseen the profitable supply of multibillion greenback tasks in Australia and in worldwide markets. He has broad expertise together with common administration, strategic planning, provide chain, finance, authorized, data expertise, sustainable improvement and human assets in each greenfield tasks and brownfield websites. His prior roles embody being head of economic operations for The Carmichael Rail Undertaking in Queensland; industrial improvement director on the Kamoto Copper Firm Copper and Cobalt mine in Katanga province of the Democratic Republic of Congo; supervisor – contracts & procurement for Glencore’s North Queensland Metals; and superintendent steel dealing with at Rio Tinto’s Boyne Smelters Ltd.

Howard Atkins – Member of the Board

Howard Atkins brings deep monetary administration, capital markets, transaction, international alternate, and public firm expertise to the Lake Sources Board. He has over 30 years of economic management expertise, together with 20 years serving as a CFO for organisations together with Wells Fargo, New York Life Insurance coverage Firm, and Midlantic Financial institution Company. Atkins beforehand held senior roles at Chase Manhattan Financial institution, together with as head of Overseas Change and Markets Companies for Europe, the Center East and Africa, and head of the financial institution’s worldwide rate of interest derivatives buying and selling enterprise. He has served on the boards of Occidental Petroleum and Ingram Micro.

Dr. Cheemin BoLinn – Member of the Board

Dr. Cheemin Bo-Linn is an completed CEO, former Fortune 100 operations govt, and board director with over 25 years of governance experience at personal organizations and public firms throughout the Americas and Europe. Her board management expertise at public firms consists of her appointment as lead impartial director, chair of each main committee (audit, compensation, nomination/governance), chair of sustainability/ESG, and chair of the expertise and cybersecurity committees. Her associated present board service consists of Flux Energy, a number one developer and producer of superior sustainable lithium-ion vitality storage options for industrial mobility fleets.

Ana Gomez Chapman – Member of the Board

Ana Gomez Chapman is a monetary companies govt and board director with over 25 years of funding administration, capital markets and enterprise management expertise. She has labored and lived throughout the US, Europe, Latin America and Asia Pacific. Chapman beforehand served on the board of administrators of MP Supplies, a US-based sustainable uncommon earth manufacturing and refining firm the place she steered the corporate by way of an operational turn-around that led to a New York Inventory Change itemizing. She has additionally served on the advisory board of funding software program firm Backstop Options Group. She is a capital markets knowledgeable who has held senior roles at institutional funding companies together with Hamilton Lane, the place she presently serves as a managing director. She beforehand was senior relationship supervisor and alternate options lead at Allianz International Buyers, president of JHL Capital Group LLC, and vice-president at Goldman Sachs of their Latin American, Asian and US equities companies.

John Freeman – Chief Authorized Officer and Common Counsel

John Freeman is a extremely completed authorized govt with over 30 years of expertise in main world firms. His in depth expertise management expertise consists of serving as chief authorized officer, govt vice-president and company secretary for McDermott Worldwide; common counsel and govt vice-president for Technip S.A.; world ethics and compliance director for Baker Hughes, along with different authorized and compliance positions inside that group. Freeman has additionally served as prosecuting legal professional for the US Workplace of Particular Counsel and particular assistant US legal professional for the District of Columbia.