The Lake Resources N.L. (ASX: LKE) share price is on the rise today following the company's positive announcement.
At the time of writing, the clean lithium developer's shares are selling for 38 cents, up 2.7%.
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What did Lake Resources announce?
Lake Resources shares are climbing after the company revealed that drilling is underway at its flagship Kachi Lithium Brine Project in Argentina.
According to its release, Lake Resources advised increasing drill testing will support the doubling of current lithium production capacity.
A four well, 1,600-metre diamond drill program is advancing with brine sampling and pump testing also underway. The drilling works will see Lake Resources convert Inferred Resources to Measured and Indicated (M&I) resources.
The term Inferred Resources refers to quantity, grade (quality) and mineral content that's estimated with a low level of confidence. On the other hand, M&I Resources are regarded with a reasonable to high level of confidence based on enough samples being collected.
The upgrade in Kachi's 4.4 megatonnes (Mt) lithium carbonate equivalent (LCE) total resource is for a Definitive Feasibility Study (DFS). In addition, a production expansion study will be executed to identify opportunities.
Lake Resources stated that less than 20% of the current total resource is being utilised for its planned 25,500 tonnes per annum LCE production over 25 years.
Lake Resources managing director Steve Promnitz commented:
Interest continues to increase among potential offtakers to secure supply, especially of a premium product with ESG benefits which Lake can produce thanks to its sustainable direct extraction process.
This drilling program will support an expansion study to double production to 50,000tpa. This would make Kachi a globally significant producer and one of a few that can bring high purity lithium carbonate to market consistently with a low carbon footprint, perfect for the needs of leading EV makers.
About the Lake Resources share price
The Lake Resources share price has accelerated in the past year, gaining more than 880%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds.
Based on the current share price, Lake Resources commands a market capitalisation of more than $400 million.
