Operations, Corporate Update & Resource Drilling

RNS Number : 0606H

CleanTech Lithium PLC

04 April 2022

 

To view the release with pictures of project locations and drill programme maps please click this link: http://www.rns-pdf.londonstockexchange.com/rns/0606H_1-2022-4-3.pdf

4 April 2022

CleanTech Lithium PLC ("CleanTech Lithium" or the "Company")

Operations and Corporate Update

Resource Drill Programmes Progressing at Laguna Verde and Francisco Basin Lithium Projects

CleanTech Lithium PLC (AIM: CTL), an exploration and development company, advancing the next generation of sustainable lithium projects in Chile, announces an operations and corporate update, following its recent Admission to AIM, in line with its stated strategy to produce low or zero emissions lithium, a critical advantage in the fast-growing EU market, by H2 2024.

Overview

· Resource drilling at its two projects Laguna Verde and Francisco Basin, located in the lithium triangle - the world's centre for battery grade lithium production, is progressing well and as planned

· Drilling has confirmed the presence of sub-surface brine aquifers in both projects

· Brine analysis results from six holes of an eight-hole programme (4 holes at Laguna Verde and 2 holes at Francisco Basin) expected in Q2 2022

· An upgraded JORC compliant resource estimate for Laguna Verde and a maiden resource estimate for Francisco Basin targeted for Q2 2022

· Updated JORC compliant resource estimate at Laguna Verde to provide basis for Pre-Feasibility Study

·  Admitted as a new member of the National Mining Society in Chile - SONAMI, a Chilean trade association that represents and supports the advancement of mining activity in Chile

· CEOL application for production licence to be re-submitted in line with new Government and administration process

Commenting, Aldo Boitano, Chief Executive Officer, of Cleantech Lithium PLC, said:

"As outlined in our recent Admission to AIM announcement, it is our intention to produce low or zero emissions lithium, a critical advantage in the fast-growing EU market, by H2 2024. The resource drilling programmes at Laguna Verde and Francisco Basin are an important step of this journey.

"The resource drilling programmes, which commenced in January 2022 at Laguna Verde and in March 2022 at Francisco Basin, are progressing well and importantly, in line with management's expectations, confirming the presence of sub-surface brine aquifers at both projects. Brine sampling is underway with assay results due in Q2 2022. These results are also expected to provide the basis for an upgraded resource estimate at Laguna Verde, and a maiden resource estimate at Francisco Basin in Q2 2022. We look forward to updating the market on our assay results and full results of our resource drilling programmes in due course."

Resource Drilling Programme

The Company is undertaking an eight-hole drilling programme at its two projects Laguna Verde (4 holes) and Francisco Basin (4 holes), located in the lithium triangle of Chile with a total licence area of >175km2. Both projects are situated within basins entirely controlled by Cleantech Lithium, which affords significant potential development and operational advantages. The projects have direct access to excellent infrastructure and renewable power.

Laguna Verde Resource Drilling Programme Progress Update

The resource drilling programme at Laguna Verde, which commenced in January 2022, is aimed at upgrading the sub-surface resource from Inferred to Measured and Indicated in accordance with the JORC Code.  This will provide the basis for undertaking a Pre-Feasibility Study on the project.

The Laguna Verde project has an existing JORC compliant resource estimate of 77,834 tonnes of Lithium Carbonate Equivalent (LCE) in the Measured category, which comprises the surface resource, and 1.16 million tonnes LCE in the Inferred category, which comprises the sub-surface resource.

The current drilling programme comprises four drill holes.  LV01 was drilled to a depth of 474m, having encountered a brine aquifer thickness of 348m.  LV02 was completed at 339m and recorded an aquifer thickness of 282m. 

Both holes have been cased to a depth of 320m, with slotted casing used from the aquifer starting depth. At LV02 a total of 25 brine samples were collected from the aquifer. Sampling is proceeding at LV01. The drill rig is currently positioned at hole LV03 where drilling has reached a depth of 364m.

Drill hole locations were selected to minimise any potential environmental impacts, with each hole located at least 200m from the margin of the surface lake and at a significantly higher elevation. Each hole drilled during the current programme can be converted into a production or hydrogeological monitoring bore. The location of any future production bores will also be selectively located to minimise impacts.

A geophysics programme based on a Transient Electromagnetic ('TEM') survey was also completed in March 2022 by Geodatos. The programme supported the relocation of hole LV04 to the east side of the lake, due to accessibility problems relating to the initial location. It also tested deeper aquifer target zones on the eastern area of the licenses, to generate potential additional drilling targets.

Francisco Basin Drill Program Progress Update

A resource drilling programme, consisting of 4 wells in total, at Francisco Basin is aimed at producing a maiden resource estimate. Two drill holes are planned in the current drill season, which ends in mid-May due to the onset of winter, and two further wells are planned for the next season, starting in October 2022.

The two wells drilled this season will form the basis for a JORC Inferred resource estimate, based on a 2.5km radius around each of the drill holes. The two wells next season are expected to provide the basis for upgrading the resource to the Measured and Indicated category.

The drill rig is currently positioned at hole FB01 where drilling has reached a depth of 224m. Drilling encountered the target brine aquifer at approximately 100m, and then encountered a confined aquifer at 185m with high pressure and brine flow rates.  On completion the drill hole will be cased, developed, and sampled.

Sampling and Resource Estimation Update

Brine sampling at holes LV01 and LV02, on Laguna Verde, will be completed this week and submitted for laboratory analysis. Results for this first batch of brine samples is expected in early Q2 2022 which will be announced to the market.  Brine samples from remaining holes drilled at both projects in the current season will be received over the course of Q2 and further announced to the market. Based on completion of the four-hole drill programme at Laguna Verde and two holes at Francisco Basin, an upgraded resource estimate for Laguna Verde and a maiden resource estimate for Francisco Basin is also expected to be completed in the second quarter.

CEOL Applications

As part of the change of Administration in Chile, the Company was informed in the last week that the process of awarding special lithium operation contracts ("CEOL") has been suspended and as a result CTL will be resubmitting the applications for its two projects. The CEOL licences are not required until the production phase of the projects, with first production anticipated in 2H 2024, and so the Company has considerable latitude in the timing of resubmitting the applications, but nonetheless expects to do so in the coming weeks and will update the market accordingly. 

It has been confirmed that the previous applications submitted by the Company's subsidiaries were well received and CTL has been encouraged to resubmit the applications. The Company's senior management has had regular and positive discussions with representatives of the new administration, including at senior level, and is confident in the new applications. Recent public statements made by the current administration indicating their support for lithium project developments using clean technology further adds to that confidence.

Admission to the National Mining Society in Chile - SONAMI

Sociedad Nacional de Minería

The Company is pleased to announce that it has been admitted as a new member of the National Mining Society in Chile, Sociedad Nacional de Minería ('SONAMI'), a Chilean trade association that represents and supports international mining activity in Chile.  The trade association brings together over 70 medium-large mining corporations operating in Chile, as well as 38 regional mining associations, representing more than 2,000 small mining entrepreneurs.

This is an important development for CleanTech Lithium and the membership will support the Company in its in-country relations and advancement of its two lithium projects towards production by H2 2024.

Competent Person

The information in this release relates to Exploration Results based on information compiled by Christian Gert Feddersen Welkner, who is an independent Qualified Person to the Company and is a Member of Comision Calificadora de Competencias en Recursos y Reservas Mineras Chile that is a 'Recognised Professional Organisation' (RPO). Mr Feddersen has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Feddersen consents to the inclusion in the press release of the matters based on his information in the form and context in which it appears.

**ENDS**

For further information visit www.ctlithium.com or contact the following:
CleanTech Lithium PLC
Aldo Boitano	Jersey office: [phone] Chile office: [phone]
	Or via Celicourt
Celicourt Communications	[phone]
Felicity Winkles/Philip Dennis	[e-mail]
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish	[phone]
Fox-Davies Capital Limited (Broker)	[phone]
Daniel Fox-Davies	[e-mail]

Notes

CleanTech Lithium (AIM: CTL) is an exploration and development company, advancing the next generation of sustainable lithium projects in Chile.  The Company's mission is to produce material quantities of battery grade lithium by 2024, with near zero carbon emissions and low environmental impact , offering the EU EV market a green lithium supply solution.

CleanTech Lithium has two prospective lithium projects - Laguna Verde and Francisco Basin projects located in the lithium triangle, the world's centre for battery grade lithium production. They are situated within basins entirely controlled by the Company, which affords significant potential development and operational advantages. The projects have direct access to excellent infrastructure and renewable power.

CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction. Direct Lithium Extraction is a transformative technology which only removes lithium from brine, with higher recoveries and purities. The method offers short development lead times, low upfront capex, with no extensive site construction and no evaporation pond development so there is no water depletion from the aquifer or harm to the local environment.

 

END

 

 

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