CleanTech Lithium (CTL ), a Chile-focused lithium explorer, issued an operations update on its 3 lithium projects in Chile - Laguna Verde, Francisco Basin, and Llamara.

At Laguna Verde, CleanTech expects a JORC resource upgrade in the coming weeks on the basis of its 2023 test programmes. Assays from resampling of well LV02 showed an improvement in the average lithium grade to 203mg/L with a peak grade of 417mg/L. New wells LV05 and LV06 were completed in Q2 2023 with aquifer thickness of 375m and 342m respectively. At LV05, samples showed grades of 202mg/L, and at LV06 - 174mg/L.

Laguna Verde Resource Drill Programme Map

Likewise at Francisco Basin, a JORC resource upgrade is expected in Q3 2023. All three new wells planned for the 2023 drilling campaign have been completed, and 2 additional wells have been added to the programme underway to test the extension of the resource. A scoping study is also nearing completion to follow the JORC resource upgrade.

Francisco Basin Resource Drill Programme Map

At Llamara, an exporation drill hole LL01 was drilled to 300m depth, encoutering brine and a gas sequence before being shut-in for safety reasons. Brine was encountered at shallower depth than expected, seen as a positive sign. A second exploration hole LL02 recently commenced with drilling currently at 183m. A field programme on sampling of surface evaporite deposit is to commence at Llamara in Q3 2023.

LL01 and LL02 Drill Site Locations at Llamara

In summary, CleanTech continues to make significant progress across all three of its lithium projects in Chile, with drilling campaigns running simultaneously, paving the way to production in the near term. The company's work programmes so far have revealed a compelling investment case based on a 2 million tonnes of lithium carbonate (LCE) resource.

While the scoping study for Francisco Basin is expected before the end of the year, Laguna Verde's scoping study was completed in January, reaffirming the project's value. With an operational life of over 30 years at an estimated 20 tonnes/annum of lithium carbonate from an estimated resource of over 800Mt (measured + indicated), and a total recovery rate of 85.2%, the asset is shaping up to be profitable for years to come.

Further supporting the project's economics is a low operating cost of $3,875/tonne and a low capex of US$383.6m, underpinning a post-tax NPV of US$1.83bn and IRR of 45.1%, with a payback period of 1 year and 8 months. The costs are competitive even in comparison with projects using traditional extraction processes (solar evaporation).

CleanTech, however, is betting on DLE. It is a greener extraction method that minimises aquifer depletion and has a smaller geographical footprint than conventional evaporation brines. In addition to employing DLE methods, CleanTech has committed to using 100% renewable energy in processing LCE, and is therefore an attractive option for clients, investors, and governments that have set net zero goals. The pilot DLE plant is due for commissioning in Q3 2023, targeting 1 tonne per month of LCE.

It should be noted that CleanTech's assets will not be impacted by Chile's newly unveiled National Lithium Strategy, seeking to establish public-private partnerships for certain large projects deemed of "strategic importance" to the government. Currently, the only such "strategic" lithium area is in Salar de Atacama, and projects meeting the criteria are much larger than what CleanTech has.

CleanTech does, however, retain the option to invite state participation in its projects as it may benefit from the various protections that government minority ownership would entail. CleanTech's strategy is already largely aligned with the government's proposals, particularly in regards to DLE. CTL is expected to provide a further update on cooperation with the government in the coming weeks.

Investors have much to look forward to in the coming weeks as CleanTech will be issuing resource upgrades for Laguna Verde and Francisco Basin, with the abovementioned scoping study for Francisco Basin following shortly afterward. A pre-feasibility study at Laguna Verde is targeted for completion in late 2023. The DLE pilot plant should be operational by mid Q3 2023. And an ASX listing is planned for early Q3 2023.

The company is well-funded with £12.4m in the bank at year-end following October's fundraise. Based on results so far, CleanTech is well-positioned for continued growth in 2023 and beyond, and on track to deliver green lithium by 2026.

 

Follow News & Updates from CleanTech Lithium: