Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Noosa Mining & Exploration Investor Conference (July 2019)
39 slides from Lake Resources N.l's conference presentation, Jul 18, 2019
Slide 1: Noosa Mining & Exploration Investor Conference
For personal use only 17 July 2019 Noosa Mining & Exploration Investor Conference Steve Promnitz Managing Director
Slide 2: Disclaimer
Disclaimer For personal use only General Statement and Cautionary Statement This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings with sophisticated and professional investors, institutional investors and brokers and not any particular party. The info
Slide 3: At the heart of the Lithium Triangle
At the heart of the Lithium Triangle. For personal use only Lake Resources is focused on the development of four lithium projects in the heart of the Lithium Triangle, which produces more than 50% of the world’s lithium at the lowest cost. ASX:LKE SLIDE / 3
Slide 4: At the heart of the Lithium Triangle
At the heart of the Lithium Triangle. For personal use only • Lake has the largest lithium lease holdings in Argentina (200,000 ha) • Projects side-by-side with the lithium heavyweights. Neighbours’ market value ranges from $100m to $1,000m • Developing a top 10 lithium brine resource (Kachi) • Rece
Slide 5: Lithium demand
2500 Lithium demand First things first. For personal use only 2018: 300 2000 Demand for lithium is ‘000’s TONNES OF LITHIUM CARBONATE EQUIVALENT ‘000’s TONNES LCE forecast to increase 6x by 1500 2030 due to EV’s & energy storage demonstrated by 1000 the >US$200 billion being committed by automakers
Slide 6: Lithium demand & supply
2500 Lithium demand & supply First things first. For personal use only 2030: 2200 2000 Demand is forecast to ‘000s TONNES OF LITHIUM CARBONATE EQUIVALENT ‘000’s TONNES LCE outpace supply. 1500 +717% increase vs 2018 estimates • Majors lower production forecasts; wet weather impacts 1000 • Hard rock
Slide 7: Lithium Gigafactory Growth
Lithium Gigafactory Growth For personal use only >US$250 Bn invested in Gigafactories. <US$10 Bn invested on From 3 Gigafactories in 2015 (148GWh) to 76 Gigafactories in 2028 (1713 GWh) new supply. “Can’t build 0.5 million EV battery packs without secure supply” Chris Berry, House Mountain Partners.
Slide 8: At the heart of lithium brine supply
At the heart of For personal use only lithium brine supply. The Lithium Triangle produces more than 50% of the world’s lithium at the lowest cost. Our projects are side- by-side with the heavyweights in the Lithium Triangle. ASX:LKE SLIDE / 8
Slide 9: Location, location, location
Location, location, For personal use only location. In August 2018, SQM sold its stake in the Cauchari Project. China’s Ganfeng paid US$237 Our +160are projects million side-for 50%. with the by-side heavyweights in the Lithium Triangle. ASX:LKE SLIDE / 9
Slide 10: Location, location, location
Location, location, For personal use only location. Lake is drilling In August 2018, SQM sold within 400m of its stake in the Cauchari the world’s Project. China’s Ganfeng largest lithium paid US$237 +160 million brine resource. for 50%. 6.3 Lake is drilling within 400m of this project - the world’s
Slide 11: Location, location, location
Location, location, For personal use only location. In Nov 2018, Galaxy Resources sold northern part of Sal De Vida project to South Korea’s Posco for SALINAS GRANDES US$280 million. Pluspetrol Resources In March 2019, LSC Lithium was bought by Petroplus Resources for Our projects are side- C$111m.
Slide 12: Size of Lithium Brine Resources vs Market Value
Size of Lithium Brine Resources vs Market Value – Argentina brine companies 1.0 10 For personal use only Neighbours’ market 0.9 9 value is up to 25x 0.8 8 that of Lake’s. Combined Resource Size Million tonnes LCE 0.7 7 Market Value A$ Billions 0.6 6 0.5 5 0.4 4 0.3 3 0.2 2 Note: Any perceived relati
Slide 13: Kachi Project
For personal use only Kachi Project. 100% Lake owned Lease – 70,000ha Exploration Target Area* A JORC certified combined lithium resource of 4.4 million tonnes of LCE. Indicated Resource 1.0Mt LCE 290mg/L Inferred Resource 3.4Mt LCE 210mg/L Located in lowest part of large drainage: 6,800 km2 SLIDE /
Slide 14: Kachi Project
For personal use only Kachi Project. Lease area equivalent to 11 x Manhattan Island. 11x SLIDE / 14
Slide 15: Kachi Project
Kachi Project. For personal use only Large salt lake 20km x 15km Previously untested - now 15 drill holes Indicated Resource 1.0Mt LCE 290mg/L Inferred Resource 3.4Mt LCE 210mg/L K02 197mg/L Li K07 157mg/L Li K03 180-306mg/L Li Results: K08 326mg/L Li Good chemistry, low impurities K04 266mg/L Li ~3
Slide 16: Kachi Project
For personal use only Kachi Project. • Deep basin - Large salt lake • Resource defined in 12 months of drilling • Geophysics indicates much larger potential • Potential at depth and to south under cover SLIDE/ 16 SLIDE / 16
Slide 17: Direct extraction. The game changer.
Direct extraction. For personal use only The game changer. ASX:LKE SLIDE / 17
Slide 18: Conventional extraction
Conventional extraction. ARGENTINA Evaporation ponds – Atacama Example For personal use only CHILE Atacama SQM, Albemarle ASX:LKE ASX:LKE SLIDE / 18 SLIDE / 18
Slide 19: Conventional extraction
Conventional extraction. Evaporation ponds For personal use only 1- To produce Concentrate ASX:LKE SLIDE / 19
Slide 20: Direct extraction
Direct extraction. Ion exchange For personal use only Lilac Solutions (Silicon Valley backed) To produce Concentrate ASX:LKE SLIDE / 20
Slide 21: Direct extraction
Direct extraction. • Direct extraction pilot plant planned H2 2019 Ion exchange For personal use only • Increases grade to 25 -50,000 mg/L lithium • Increase recoveries to 85-90% (from 40-50%) • Reduces lead time to production by at least 12 months • Premium product for lithium hydroxide or lithium
Slide 22: Direct extraction. Global cost curve
Direct extraction. Global cost curve Hard Rock – Higher Cost For personal use only Brine – Lower Cost Source: Lilac Solutions; Cost Curve – Global Lithium LLC, Roskill, Neo Lithium (NLC) & GXY disclosures; Oct 2018
Slide 23: Cauchari Project
For personal use only Cauchari Project. Drilling adjoining the next Ganfeng / Lithium Americas – big producer (Ganfeng/ Largest Resource on Planet Lithium Americas) Production 40,000tpa LCE late 2020 Orocobre/ Advantage Lithium – Large Resource Lake Resources – Drilling Area SLIDE / 23
Slide 24: Cauchari Project
Cauchari Project. For personal use only Lake discovery: Intersected similar brines in same basin under cover ASX:LKE SLIDE / 24 144m wide Brine Zone; Results 340–538 mg/L lithium
Slide 25: Location, location, location
Location, location, For personal use only location. Lake is drilling In August 2018, SQM sold within 400m of its stake in the Cauchari this project - Project. China’s Ganfeng the world’s paid US$237 +160 million largest lithium for 50%. brine resource. 6.3 Lake is drilling within 400m of this projec
Slide 26: Cauchari Project
Cauchari Project. For personal use only Lake is currently drilling next to the world's largest defined Plant under Construction lithium brine resource (23.0Mt LCE Ganfeng/LAC), plus 6.3 Mt LCE at Orocobre/Advantage Lithium. Ganfeng paid US$397million for 50% over last 8 months. Clarification Stateme
Slide 27: Cauchari Project
For personal use only Cauchari Project. Lake – 288+m Brine zone 340- 538mg/L lithium (172-460m) Lake results show similar brines, similar horizons. Similar high grades and flow rates. 288m Brine Zone vs 198m in adjoining project AAL – 198m Brine Zone 450mg/L lithium (6-204m) Source: LKE; Advantage L
Slide 28: Cauchari Project
For personal use only Cauchari Project. Lake drilling next to pre- production; plant and ponds construction - LAC/Ganfeng SLIDE / 28 Source: LKE; Lithium Americas NYSE:LAC
Slide 29: Olaroz Project
For personal use only Olaroz Project. Adjoins Orocobre production. Targets same aquifer under alluvial cover. Drill targets on basin margin after concept proved at Cauchari drilling. 1st time to drill after >3 year wait. 30km long lease holding (similar length to Lithium Americas resource area) SLID
Slide 30: Olaroz Project
For personal use only Olaroz Project. 30km likely extension. Source: Jujuy Registro Grafico; Company disclosures SLIDE / 30
Slide 31: Catamarca Project
For personal use only Catamarca Project. Target: Large scale spodumene deposits in pegmatite swarms. 150 km Opportunity for new pegmatite deposit using modern exploration technology. New exploration models in area of past production 150km long belt large area ~80,000 ha SLIDE / 31
Slide 32: Timeline to production
2021/22 For personal use only Timeline to 2020 • Kachi – Production production H2 2019 • DFS Kachi – Pre- Production • Kachi – initially 25,000tpa LCE; potential to expand to 100,000 tpa LCE Q1-Q2 2019 • Kachi PFS to show • Development funding for • Olaroz – Pre-production development options Kachi
Slide 33: Development Partners
For personal use only Development Partners Path to uplift • Seeking downstream strategic Drill Cauchari, Olaroz agreements. • Kachi PFS with conventional and direct extraction methods. PFS / Pilot Plant - Kachi • Drill Cauchari to extend high grade results next to major pre-production. • Globally lo
Slide 34: Share price chart and market data
LAKE RESOURCES (ASX:LKE) LAKE RESOURCES (ASX:LKE) 1 YEAR For personal use only Share price chart Total Current Shares on Issue 478,237,975 Options (10c) Aimed for listing Jun 2021 Expiry [TBA] Unlisted Options (5c) Oct 2019 Expiry 5,052,083 Unlisted Options (8c) Feb 2022 Expiry 5,555,000 Notes Unsec
Slide 35: Leadership
Lake has extensive experience in the resources Leadership. sector with vast expertise in project acquisition, For personal use only exploration and development. Steve Promnitz Stu Crow Nick Lindsay MANAGING DIRECTOR CHAIRMAN NON-EXEC NON-EXEC DIRECTOR Extensive project management experience in More
Slide 36: Mineral Resource Estimate
Mineral Resource Estimate. Kachi Lithium Brine Project - JORC Code 2012 For personal use only Competent Person’s Statement Kachi Lithium Brine Project The information contained in this ASX release relating to Exploration Results has been compiled by Mr Andrew Fulton. Mr Fulton is a Hydrogeologist an
Slide 37: JORC Code 2012. Kachi Table Report
JORC Code 2012. Kachi Table 1 Report Kachi Lithium Project For personal use only SLIDE / 37
Slide 38: JORC Code 2012. Cauchari Table Report
JORC Code 2012. Cauchari Table 1 Report Cauchari Project For personal use only SLIDE / 38
Slide 39: Contacts
Contacts. For personal use only Steve Promnitz Managing Director steve@lakeresources.com.au +61 2 9299 9690 lakeresources.com.au ASX:LKE SLIDE / 39
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