Kachi comprises a brine-bearing basin over 20km long, 15km wide, and 400-800m deep with indicated and inferred resource of 4.4 million tonnes LCE (lithium carbonate equivalent).
It says engineering studies show it operating costs in the lowest cost quartile, and it will appoint an engineering study to examine the project's technical and economic viability, including both conventional processing and direct extraction methods, and will help reduce costs further.
While Lake said it had sufficient funds for the PFS, it is "in discussions with a number of parties with respect to production development funding and partnership … that would assist with financing the feasibility study that is likely to follow on from the PFS".
In February Lakes completed a A$1.65 million financing package via the issue of unsecured convertible securities to a North American investor.
The ASX-listed company also said it had the option to increase the size of the facility up to $5 million.
Meanwhile Lake has again talked up the value of Kachi, pointing to transactions over the past few years that suggested Kachi could be valued in the order of US$200-400 million.
Shares in Lake were up 9% to A6c in afternoon trade, capitalising the company at $21 million.
The stock has lost about 50% in market value over the past year.
