Lithium producer Allkem says Olaroz resource increased 27% to 20.7Mt LCE

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(Kitco News) - Lithium producer Allkem (TSX: AKE) (ASX: AKE) announced today that Olaroz resource increased by 27% to 20.7 million tonnes ("Mt") lithium carbonate equivalent ("LCE"), comprising 7.6 Mt of measured resource, 7.1 Mt of indicated resource and 6 Mt of inferred resource.

In a press release, the company said that total resources in the Olaroz-Cauchari basin are now 27 Mt LCE in all resource categories, "confirming the basin's status as hosting one of the largest lithium resources in the world."

Allkem added that the lithium grade of the Olaroz salar measured resource is 657 mg/l lithium, with the underlying indicated resource and inferred resource 612 mg/l and 604mg/l lithium respectively.

Importantly, the company said the recently acquired Maria Victoria property in the north of Olaroz contributed 2.8 Mt of the increase in resources, with the difference relating to "expansion of the resource to the south" following completion of the expansion drilling.

Allkem also pointed out that the Olaroz basin has significant exploration potential with extensive areas to the north of the salar surface currently untested by drilling and also extensions towards the Cauchari resource and to the west of the salar.

"The increased Olaroz resource, together with the Cauchari resource, support expansion from Stage 1 and 2 lithium carbonate production capacity (combined 42,500 tpa) and will form the basis for the Olaroz Stage 3/Cauchari expansion studies," the company said.

"Olaroz is complemented by the company's high-quality Sal de Vida and James Bay projects in Argentina and Canada. These projects will produce lithium chemicals for use in the EV supply chain in areas of low or no water stress, while contributing to the local economy and communities," it added.

Allkem is a speciality lithium chemicals company with lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan. The company also develops the James Bay spodumene project in Quebec, Canada.