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Lake Resources N.L. has announced a significant upgrade to the Mineral Resource Estimate (MRE) for its flagship Kachi lithium brine project in Catamarca Province, Argentina. The latest update reveals a substantial increase in the high-confidence Measured and Indicated Resource to 8.2 million tonnes of Lithium Carbonate Equivalent (LCE), up from 7.3 Mt LCE, highlighting the growing potential of the project.

The updated MRE, incorporating results from the K25D44 drillhole in the southern sector of the salar, demonstrates a more than 25% surge in the Measured Resource, now standing at 4.2 Mt LCE. This high-confidence resource has been defined to a depth of 600 meters across an expansive 83 square kilometers. The total resource at the Kachi project now stands at an impressive 11.1 Mt of LCE, spread over 275 square kilometers.

This positive revision builds upon the previous resource update in November 2023 and underscores the continuous growth in the defined lithium inventory at Kachi. Notably, the K25D44 drillhole, the second to extend beyond 600 meters in the southern region, has provided valuable insights into the subsurface lithium distribution. Samples from the planned production interval (200 m to 400 m below ground surface) in the 2023 Feasibility Study for this drillhole averaged a promising 274 mg/L of lithium.

The updated geologic model, which now includes refined lithium concentration and drainable porosity values, will be crucial for upcoming revisions to the Ore Reserve estimate and the associated hydrogeologic model. These updates are integral to the ongoing Definitive Feasibility Study (DFS) for the Phase 1 Project, which is currently focused on capital and operating expenditure estimations.

In a significant parallel development, Lake Resources highlighted the substantial improvements achieved by upgrading from Lilac Solutions’ Gen3 to Gen4 direct lithium extraction (DLE) media. This technological advancement is expected to significantly increase lithium recovery rates, potentially leading to a reduction in the number of extraction and injection wellfields required in the updated Ore Reserve.

The consistent expansion of the Kachi project's resource base since its maiden estimate of 4.4 Mt LCE in 2018 underscores the project's growing significance in the lithium market. The progression from 2.2 Mt LCE in Measured and Indicated categories in January 2023 to the current 8.2 Mt LCE demonstrates the effectiveness of ongoing exploration and drilling efforts.

Previous pumping and injection testing conducted in August 2023 confirmed the permeability of the lithium reservoir within the resource area, validating the feasibility of constructing productive wells for extraction and injection. The data from these tests were instrumental in calibrating the hydrogeological model used to simulate the planned wellfields, including lithium concentrations and flow rates, which underpinned the Ore Reserve Estimate outlined in the December 2023 DFS.

This latest resource upgrade provides further confidence in the economic viability and long-term potential of the Kachi Lithium Brine Project, positioning Lake Resources as a significant player in the burgeoning lithium market. The increased resource, coupled with advancements in DLE technology, suggests a more robust and efficient project moving forward.