Lithium developer Lake Resources (ASX:LKE) will be evaluating the impact of recently identified data on the Kachi Project’s costs estimates in the phase-one Definitive Feasibility Study.
The company’s Kachi Project partner, Lilac Solutions, uncovered cost savings of up to 50% for direct lithium extraction (DLE) equipment construction costs, after releasing its fourth-generation ion exchange technology and technical white paper.
Lake Resources, which has a market capitalisation of $63.4 million, says Lilac has also improved long-term lithium recovery to over 90% on salar brines. The total cost savings across the DLE technology package is up to 25%, in addition to 10% lower reagent consumption, which the company says positively impacts project operating costs.
Lake Resources to review lithium cost estimates
CEO David Dickson says the technology advancements and cost savings are considered “significant”.
“Improvements in the technology in addition to an increase in the brine lithium grade could result in a reduction in overall project capital of up to 10% for the Kachi Project,” he says.
Lilac CEO Raef Sully says the industry has been waiting on commercially-scalable ion exchange DLE technology.
“Lilac is excited about the cost savings and operational efficiencies our latest generation ion exchange technology brines,” he says.
“This advancement not only enhances lithium extraction efficiency but also boosts the sustainability and economic viability of lithium production.”
The Kachi Project plant in Argentina has been designed with an assumption of an 80% lithium recovery within the DLE process, alongside a design basis for 205mg per litre lithium concentration against a minimum average of 245mg per litre across the reserve.
Lake says these conservative assumptions for Kachi’s phase-one DFS provides a potential opportunity for optimisation of the construction cost of the DLE portion of the facility.
Write to Aaliyah Rogan at Mining.com.au
Images: Lake Resources
