The drilling is expected to support geophysics work which has shown a likely extension to the high-grade lithium brines of adjacent properties.
Cauchari’s project area borders the Ganfeng Lithium and Lithium Americas (TSX:LAC) joint venture Mariana Lithium-Potash Project and the Orocobre Limited (ASX:ORE) and Advantage Lithium Corp (CVE:AAL) joint venture Cauchari Project.
Third-party drill results close to Cauchari’s lease boundary include 600-705 milligram per litre of lithium with high flow rates.
A rotary drill rig is drilling 100-metre pre-collar holes through gravel to fast-track diamond drilling into the targeted brines.
The diamond drill rig has advanced on the first drill hole and is currently at about 110 metres.
The rotary rig has completed the 100-metre depth pre-collar at the second drill hole, which will assist the diamond rig through the upper gravels into the brine sequence.
The two holes are 2,500 metres apart.
Lake has also established an unsecured $500,000 loan facility at a commercial interest rate with a current shareholder.
The facility will be available immediately for short-term funding of exploration activities including Cauchari drilling.
The Argentine-focused lithium explorer is in discussions with a number of potential strategic investors to advance its projects through pre-feasibility and feasibility stages.