CleanTech Lithium (CTL) , a Chile-focused lithium explorer, updated markets on the commissioning of its DLE pilot plant. DLE or Direct Lithium Extraction is a greener method of extracting lithium from brine, which minimises aquifer depletion and has a smaller geographical footprint than conventional evaporation brines.
CleanTech ordered the US$2 million DLE plant from Sunresin a several months ago in Q1 2023. The plant is designed to streamline lithium extraction and produce a purified concentrated eluate that will feed the downstream process to deliver 1 tonne per month of lithium carbonate equivalent (LCE) for product qualification by potential partners.
The plant is being shipped in two stages. The first shipment - the DLE columns and rotary valve - have arrived at CleanTech's facility in Copiapó, Chile and are being installed. The second shipment is due to arrive in the coming weeks. Commissioning of the plant is expected to be finalised in Q4 2023.
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Another important milestone for CleanTech on its way to sustainable lithium production. DLE is a greener, more modern, and more efficient lithium extraction method that should appeal to investors interested in next-generation energy technologies. 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. As mentioned, the pilot DLE plant is due for commissioning in Q4 2023, targeting 1 tonne per month of LCE.
CleanTech will need the plant up and running soon to process lithium from its valuable Chilean concessions. Only 10 days ago, the company upgraded the JORC resource estimate at its Francisco Basin project by 74% to 0.92 million tonnes of LCE with 0.44 million in the Indicated category. Although not yet categorised as a Reserve, the resource is considered sufficient for a production rate of 20,000 tonnes per year of battery grade lithium carbonate for up to a 20-year operation.
The upgraded estimate will be used in the upcoming scoping study for the project, which is nearing release. There is further upside on the horizon as CleanTech plans to develop new wells at Francisco Basin during its upcoming exploration season, expected to result in another upgrade to the project's resource size and grade in H1 2024.
Francisco Basin is CleanTech's second project in Chile after Laguna Verde, which also had a resource upgrade recently. Laguna Verde's own scoping study was released in January, reaffirming the project's value. With an operational life of 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%, Laguna Verde is shaping up to be profitable for years to come.
Locations of CleanTech Lithium's Chilean assets
The DLE pilot plant will provide process design data that will be an important input into the upcoming pre-feasibility studies for both Laguna Verde and Francisco Basin.
Overall, CleanTech's work programmes so far have revealed a compelling investment case based on a 2.7 million tonnes of lithium carbonate (LCE) resource. The company remains 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.
CTL shares gained 3% on today's announcement.
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