CleanTech Lithium (CTL) , a Chile-focused lithium explorer, updated markets on the ongoing pre-feasibility study for its flagship Laguna Verde project in northern Chile. CleanTech said it expects the study to be published in Q3 2024, and that it would incorporate data from CleanTech's DLE pilot plant and current drilling and field programme at Laguna Verde.
The pre-feasibility study (PFS) will define the best configuration for the project to take into a subsequent definitive feasibility study (DFS). The current drilling programme at Laguna Verde is designed to produce the first JORC compliant reserve estimate for the project, which will be an essential component of the PFS.
The drilling programme also aims to establish a hydrogeological model to design the extraction and reinjection wells in order to maximise lithium recovery. To this end, data from CleanTech's Direct Lithium Extraction (DLE) pilot plant will be essential.
The PFS is led by Worley, an international engineering services company, from its Santiago office. Completion of the Laguna Verde PFS will be key to engaging investors and offtake partners for project funding in 2024.
Aldo Boitano, CEO, commented: "The Pre-Feasibility Study (PFS) for the Laguna Verde project will be a significant milestone on our path to lithium production. It is the Company's aim to produce the highest quality PFS to ensure the strongest possible platform for discussions with strategic partners. The addition of data from the Company's DLE pilot plant will help achieve that aim."
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CleanTech Lithium continues to advance Laguna Verde's pre-feasibility study, now expected in Q3 2024. The small delay is justified as it will allow the inclusion data from CleanTech's pioneering DLE tech as well as positive data from its ongoing work programme at the site. Incorporating the additional inputs will yield a more robust PFS, in turn unlocking more opportunities for engaging high-quality partners amid growing demand for lithium from the EV and grid storage industries.
To supplement the DLE and field programme data, CleanTech has engaged a number of consultants to deliver detailed studies on port access, water supply, power access, and lithium markets, which also form part of the PFS. Worley was contracted in Q1 2023 to deliver the PFS, having extensive experience in resource feasibility studies and one of the leading lithium offices in Chile.
A resource evaluation programme at Laguna Verde is ongoing, aiming to produce a JORC compliant reserve estimate by Q3 2024. The existing resource of 1.8m tonnes of LCE in the Measured, Indicated and Inferred categories is based on 6 wells completed in 2022 and 2023. A further 5 wells are scheduled for H1 2024. The increased drilling density and pump tests planned for the new wells should yield a materially higher resource estimate to plan life of mine (LOM) and production output in the PFS.
Crucially, data from CleanTech's innovative DLE pilot plant will be incorporated into the PFS. The plant is currently being commissioned at CleanTech's R&D Centre in Copiapó. DLE is a more modern and sustainable method of extracting lithium with significant environmental and cost benefits. In contrast to older methods, DLE has a much smaller geographical footprint, enabling cheaper and more efficient production while reducing aquifer depletion.
DLE offers substantial advantages in extraction efficiency, capacity scaling, timing, and environmental permitting. With the ability to potentially double lithium yield from brine projects, elevating it from the conventional 40-60% range to 70-90%+, DLE introduces sustainability benefits that align with the preferences of ESG-oriented investors. Notably, these include a remarkable 20-fold reduction in land usage from the lack of evaporation ponds.
CleanTech's DLE pilot plant is designed to produce up to 1 tonne per month of LCE in concentrated lithium eluate, which will be processed to battery-grade lithium carbonate at an existing 3rd party facility. CleanTech has also committed to using 100% renewable energy in its lithium extraction and processing. The company's approach is aligned with Chile's National Lithium Strategy, which mandates the use of DLE.
CleanTech remains well-funded following November's fundraise. In the likely event that the Chilean government enters a partnership with CleanTech, we expect significant near-term upside as the company's two main projects are streamlined toward production by 2027.
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