CleanTech Lithium (CTL) , a Chile-focused lithium explorer, announced a significant upgrade to the JORC resource estimate at its Francisco Basin project in Chile.
The new JORC resource estimate at Francisco Basin is 0.92m of lithium carbonate equivalent (LCE) at an average grade of 207m/L. This represents a 74% increase over the previous estimate, and now includes 0.44 million tonnes at 221 mg/L lithium in the higher-confidence 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 new data will be used in the upcoming scoping study for the project, which is nearing release.
A pumping test programme was also completed at Francisco Basin and recorded a high transmissivity corresponding to a flow rate of c. 80L/s, providing further positive input for the upcoming scoping study.
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Following its extensive work programme at Francisco Basin in H1 2023, CleanTech has issued a material upgrade to the project's JORC resource estimate to 0.92 million tonnes of LCE with 0.44 million now in the Indicated category. The 74% higher estimate strengthens the project's economics and derisks further development. CleanTech shares jumped 7.7% on the positive news.
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.
Today's announcement provides support for Francisco Basin's upcoming scoping study, expected to be released later in Q3 2023. The study's base rate of 20,000 tonnes of LCE per year was reinforced by the abovementioned flow rate tests, which exceeded expectations and could result in a reduction in the number of wells required for production.
Overall, the scoping study is expected to further reinforce Francsico Basin's path to production, capital requirements, and support CleanTech's engagement with potential partners.
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
ESG-focused investors should note that CleanTech will use a Direct Lithium Extraction (DLE) process at both Francisco Basin and Laguna Verde. DLE reduces the need for large scale evaporation ponds when extracting lithium from brine, reducing environment harm and depletion from aquifers, and is therefore key to CleanTech’s sustainable approach to lithium production. In addition, CleanTech has committed to using 100% renewable energy in processing LCE.
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.
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