Mining Intelligence and News
Argentina

Kachi Project

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Categories

Overview

Mine TypeIn-Situ
StagePermitting
Commodities
  • Lithium
Mining Method
  • Brine mining
Mine Life... Lock
SnapshotThe Kachi Project Phase One DFS demonstrates Kachi as a tier one project with significant resources, strong economics, and innovative lithium brine extraction through ion exchange Direct Lithium Extraction (DLE) developed with Lilac Solutions.

The DFS defines the project to support an economic decision for Phase 1 and provides the tools needed to move the project forward, including financing, permitting, FEED, power supply and construction. Key deliverables of the DFS include process design criteria, flow sheet, plant configuration.

Collaboration with YPF Luz resulted in an exclusivity agreement for the power solution, with FEED work will be progressed through the remainder of 2024. The project also submitted its Production Environmental Impact Assessment (EIA) to the Catamarca Mining Authority, marking a significant milestone, designed to minimize fresh water use and maintain the hydrogeologic system.

Owners

SourceSource
CompanyInterestOwnership
Lilac Solutions 20 % Indirect
Lake Resources NL 80 % Indirect
Lake is the manager of the Kachi Project. The mineral owner of the project is Morena Del Valle SA, which is owned by Kachi Lithium Pty Ltd (KLP).

Lake is an 80% shareholder and Lilac is a 20% shareholder in KLP. It is anticipated that Lilac will earn a further 5% stake in KLP and ownership will be 75% Lake and 25% Lilac prior to Final Investment Decision.

Contractors

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Deposit type

  • Brine

Summary:

The Carachi Pampa basin is an arid, closed basin comprised of interbedded lacustrine and alluvial sediments of gravels, sands, silts, and clays, with episodic volcanic deposits of ignimbrites, tuffs, and basalts. The basin is bounded to the east and west by north-south trending mountain ranges formed by thrust faulting exposing basement sequences in outcrops that rise to an elevation of about 5,100 m amsl. The Cerro Blanco pyroclastic complex is located on the south of the basin and is the primary source of the pyroclastic flows that deposited the ignimbrites and tuffs, while the Antofagasta de la Sierra and the Cerro Galan volcanic complex form the highlands in the north and northeast borders of the basin. The ranges to the east are composed of crystalline pre-Cambrian basement that gently slopes down to the basin floor. Red bedded sandstone and claystone sequences of the Geste and Patqia de la Cuesta Formations outcrop in the Los Colorados Range along the western edge of the basin. Extensive alluvial fan deposits were formed to the north, south, east and west of the central salar, as coarse-grained, high-energy sediments were shed from the nearby steep terrains. Altogether the basin drains a watershed area of 9,494 km2.

The center of the basin is dominated by the Quaternary basalt flows and the cider-cone of the Carachi Pampa Volcano. The volcano penetrates basin sediments to the east of the salar, with flow and air fall basalts creating a veneer over the lacustrine sediments. The volcano has a northwest-southeast striking fissure vent that is interpreted to be underlain by a northwest-southeast aligned intrusive dyke or plug of much smaller dimensions than the basalt cone has at the surface.

The salar sediments are predominantly intercalated sands and clayey silts, which constitute a leaky aquifer, with the entire sequence of sediments potentially contributing brine flow to wells. Higher brine flows are obtained from intervals with high sand content and higher permeability, with the brine grades generally comparable between geological units. The salar is surrounded on all sides by alluvial and aeolian fans of varying dimensions and significance. Most important are the Western Fan Complex and the South Fan that intercept coarse-grained sediments that contain lithium bearing brines. The North Fan is also important due to the presence of both coarse-grained sediments containing lithium bearing brines and a substantial freshwater aquifer. This freshwater overlies the lithium bearing brine.

The known sediments within the salar consist of a thin (several metre thick) salt/halite surficial layer, with interbedded clay, sand and silt horizons, accumulated in the salar from terrestrial sedimentation and evaporation of brines.

Brines within the Salt Lake are formed by evapoconcentration, interpreted to be combined with warm geothermal fluids, with brines hosted within sedimentary units.

Geology was recorded during the diamond drilling and from chip samples in rotary drill holes.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnitsAvg. AnnualLOM
Lithium t 25,228624,400
All production numbers are expressed as carbonate.

Operational metrics

Metrics
Annual production capacity  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Credits (by-product) Li2CO3 USD  ....  Subscribe
Cash costs Li2CO3 USD  ....  Subscribe
Assumed price LCE USD  ....  Subscribe
* According to 2023 study / presentation.
** Net of By-Product.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Operating margin, %  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Sep 18, 2024

Aerial view:

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