Name of the Project
Kachi lithium brine project.

Location
Catamarca, Argentina.

Project Owner/s
Lake Resources.

Project Description
A prefeasibility study (PFS) has demonstrated Kachi’s potential to deliver high-purity product required by battery makers, based on a sustainable and scalable process.

The PFS envisages a long-life, low-cost operation with a production target of 25 500 t/y of battery-grade lithium carbonate using direct lithium extraction technology based on ion exchange, which, in turn, is based on an indi­cated resource of one-million tonnes lithium car­bonate equivalent.

The process involves the treatment of about 23-million cubic metres a year of brine at 250 g/ℓ lithium, with an overall plant recovery of 83.2%. The eluate from the process is further concentrated and purified, and then fed into a conventional lithium carbonate plant.

No solvent extraction plant is required to remove boron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 25%, with a payback from first product delivery of five years.

Capital Expenditure
The project entails an investment of $544-million.

Planned Start/End Date
Not stated.

Latest Developments
Canada’s Export Credit Agency (EDC) has issued Lake Resources with a letter of intent (LoI) to work alongside UK Export Finance to potentially fund up to 70% of the finance required for the Kachi project.

“Having Canada’s direct sovereign lending alongside the UK’s sovereign considerably derisks the project for the investors and the international banks that continue to express strong interest to be part of Kachi’s development,” Lake Resources MD Steve Promnitz has said.

Although Lake has significant work to do to convert these expressions of interest into committed funding arrangements, they are a road map and if “Lake does what it says it’s going to do in the definitive feasibility study and environmental- and social-impact assessment, the project will be funded”, he has added.

EDC has indicated its ability to provide direct lending of up to $100-million for the project, subject to sourcing requirements.

EDC’s LoI does not increase the level of potential project finance available from export credit agencies for the project, but does increase sourcing flexibility, greater access to low-cost direct lending and confidence around shared financing for the project, Lake Resources has said.

A definitive feasibility study on the project is due in the second quarter of next year.

A previously completed updated prefeasibility study estimated 25 500 t/y of lithium carbonate over a mine life of 25 years, with capital costs estimated at $540-million.

Key Contracts, Suppliers and Consultants
Lilac Solutions (lithium extraction testwork) and Hatch (engineering and design services).

Contact Details for Project Information
Lake Resources, tel +61 2 9299 9690 or email hello@lakeresources.com.au.