Lake Resources share price drops 6% as investors digest latest news on Kachi

The Lake Resources share price fell back to January 2021 levels today.

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The Lake Resources N.L. (ASX: LKE) share price fell back to January 2021 levels today, diving 5.9% to 16 cents per share at its intraday trough.

This follows the release of the ASX lithium explorer's quarterly activities report late yesterday afternoon.

The company also released an investor presentation as part of a webcast at the International Mining and Resources Conference and Expo (IMARC) in Sydney today.

Let's take a look at the details of the activities report.

What happened in 1Q FY24 for Lake Resources?

Lake Resources says it is on track to complete its comprehensive definitive feasibility study (DFS) in December for a Phase 1 plant capacity of 25ktpa of battery-grade lithium carbonate.

The company said testing at its flagship Kachi Project proved the viability of its unique extraction and reinjection processes during the quarter.

It also said further drilling at Kachi revealed more lithium-bearing brine than initially identified.

The company said:

The drilling results indicate that this resource is much larger than initially anticipated as the known lithium brine extent continues to expand laterally and vertically.

Further, testing of lithium from the demonstration plant confirmed grades and purity at above 99.8%.

The testing also provided important data that will be used in the modelling for a commercial plant.

In terms of the numbers, over the three months to 30 September:

  • $9.24 million was spent on operating activities
  • $17 million was used in investing activities
  • Total funding available at the end of the quarter was $266.5 million
  • This will fund 7.49 quarters of activity from here

Lake Resources share price snapshot

The Lake Resources spare price has fallen 78% in the year to date. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) has lost 2.4% over the same time period.

Lake Resources will hold its annual general meeting in Brisbane on 30 November.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. 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 Scott Phillips.

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