Lake Resources NL (ASX:LKE, OTCQB:LLKKF) and technology partner Lilac Solutions Inc continue to advance the commissioning process of the demonstration plant at the Kachi Lithium Project in Argentina.
Lilac Solutions has confirmed the completion of dry commissioning and expects to begin wet commissioning of the plant on September 22.
Furthermore, Lilac expects to begin onsite processing of Kachi brines in the first week of October.
Whilst on September 14, 2022, Lake issued a Notice of Dispute under its agreement with Lilac, in respect of certain performance timelines, Lake advises that ongoing work is being done by Lilac at the Kachi Project and all parties are confident on-site operations will be successful.
Last week, Lake raised a dispute with Lilac over the deadline in achieving some of the milestones to secure a 25% stake at Kachi.
The Bill Gates-backed Lilac considers it has until November 30 to achieve the necessary milestones to earn up to a 25% stake in the Kachi project, while Lake believes the milestones must be achieved by September 30.
Plan progress
Lake has confirmed that the construction of the facility to house the Lilac demonstration plant is now complete.
The company’s test program is based on operating the demonstration plant for 1,000 hours.
it is anticipated that the first 2,000 litres of lithium concentrate produced from the demonstration plant will be sent for conversion into lithium carbonate once delivered.
Lake proposes that this final lithium product will then be qualified by a tier-one battery maker to validate product specifications.
About Kachi
Lake’s flagship Kachi Project is in Argentina’s Catamarca Province at the southern end of the Lithium Triangle, a world-renowned province responsible for 40% of global lithium production.
Using direct extraction technology provided by the company's technology partner, Lake plans to produce at Kachi a sustainable, high-purity lithium carbonate product capable of attracting premium pricing from battery/cathode makers.
Importantly, the direct extraction process is an environmentally friendly technology since virtually all the water (brine) is returned to its source, offering the EV and battery industry a sustainable and consistently high-quality source of lithium for their supply chains.