Why the Lake Resources (ASX:LKE) share price is up 4% today

This lithium share is on form today…

| More on:
A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Lake Resources N.L. (ASX: LKE) share price is having a positive start to the day.

In early trade, the clean lithium developer's shares are up 4% to 87.5 cents.

This latest gain means the Lake Resources share price is up an incredible 1,150% in 2021.

Why is the Lake Resources share price pushing higher today?

Investors have been bidding the Lake Resources share price higher this morning following an update on drilling plans across its operations.

According to the release, the company is aiming to expand its lithium projects and potential resources with new drilling at its lithium brine projects at Olaroz, Cauchari and Paso. These drilling activities are scheduled to start in late January with a 10 hole 4000m drill program.

The release highlights that these projects are located in Jujuy province, north-west Argentina, close to the Allkem Ltd (ASX: AKE) Olaroz operation and the Lithium Americas-Ganfeng Cauchari project.

Lake Resources' Managing Director, Steve Promnitz, commented: "Increasing demand expressed by potential offtakers for a secure supply of high quality, environmentally friendly lithium has encouraged Lake to drill and test our other 100 percent owned brine projects in Argentina, adding to our flagship Kachi Project."

Production target doubled at Kachi

It certainly has been a busy period over at Lake Resources. The company recently revealed that drilling and DFS development work at the flagship Kachi Lithium Project supports the doubling of its production target.

If it delivers on this, management expects it to allow the company to benefit from increasing demand for high-grade, battery quality lithium produced via the environmentally sustainable, direct extraction process.

All in all, it feels these projects make Lake well placed to expand output, with support from export credit agencies and international investors.

"Now is the perfect time to expand our resource base, with Argentina gaining increasing international investment due to the quality of its lithium resources. Having recently visited the project site and engaged with local stakeholders, we are keen to ramp up activity early in the new year to seize this window of opportunity for Lake," Mr Promnitz concluded.

Motley Fool contributor James Mickleboro owns Allkem Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »