Lake set for lithium push

LITHIUM junior Lake Resources enjoyed a very large re-rate when it entered the sector last May and notwithstanding market vagaries managing director Steve Promnitz is targeting more of the same as work begins apace in Argentina over the next few months.
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Kingsgate's corporate development manager Stephen Promnitz

Michael Quinn

Sampling plus geophysics followed by drilling in March is in train, with Lake claiming to hold one of the largest lithium packages in the lithium hotspot that is Argentina’s so called Lithium Triangle.

Promnitz, who has six years’ experience in this part of the world from back in the 1990s when he worked with major mining companies like CRA and Western Mining, wants to attract end users in the lithium space to the Lake exploration venture.

And he notes, for example, the lesser presence of Korean firms in the space versus Chinese businesses.

Promnitz, who has also had roles in the past decade or so with Kingsgate Consolidated and more recently Indochine Mining, also believes there could be a toll treatment opportunity for Lake given the plants planned for the region - assuming Lake’s exploration ambitions are met.

So far as market interest goes, he suggested broadly similar companies were being valued at 2-3 times Lake’s capitalisation of about $12 million.

Lake raised $A1.2 million last month to get exploration underway, and current plans envisage about $2 million per annum to be spent progressing the venture.

Lake shares were at 0.4c prior to the arrival of Promnitz and his backers and their lithium plans in May 2016.

The shares subsequently spent the next six months mostly trading at between 4c and 6c as Lake’s new direction was formalised.

The coincidently appropriately named Lake had reportedly spent the best part of the past two decades exploring for porphyry copper-gold and epithermal gold deposits in Pakistan’s rugged Chagai District of Balochistan.

The recent raising was done at 6.5c per share.