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.
The post Why the Lake Resources (ASX:LKE) share price is up 4% today appeared first on The Motley Fool Australia.
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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.
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