Francisco Basin: Maiden Resource, New Li Discovery

RNS Number : 4525B

CleanTech Lithium PLC

03 October 2022

 

3.10.22

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

Francisco Basin - Maiden Resource Estimate of 0.53 Million Tonnes LCE at 305mg/L Lithium

Confirms Significant New Lithium Discovery - Chile

CleanTech Lithium's Total Lithium Resources Now Exceed 2 Million Tonnes LCE

CleanTech Lithium PLC (AIM:CTL), an exploration and development company advancing the next generation of sustainable lithium projects in Chile, announces a maiden JORC Inferred resource estimate at its Francisco Basin Lithium project, Chile.

Highlights

· Maiden JORC Inferred resource estimate of 0.53 million tonnes lithium carbonate equivalent ("LCE") at a grade of 305mg/L

· Estimate is based on the first well (FB01) completed before the Chilean winter break of a four well resource drill programme

· FB01 encountered a brine aquifer from 99m to 311m, an aquifer thickness of 212m starting from relatively shallow depths

· 34 brine samples were collected from regular intervals with a peak lithium grade of 324 mg/L and an average grade of 305mg/L

· Further three wells to commence in coming weeks to expand and upgrade the resource estimate to Measured and Indicated categories

· Scoping Study will commence at Francisco Basin in Q4 2022 for an expected base case production rate of 20,000 tonnes LCE per annum

· Francisco Basin is located within 100km of CleanTech Lithium´s more advanced Laguna Verde project (1.51 million tonnes LCE at a grade of 206mg/L lithium)

· Total resources now exceed 2 million tonnes LCE at the two projects, which CleanTech Lithium is developing concurrently, as it targets producing battery-grade, carbon neutral lithium for the EU battery market.

Commenting, Aldo Boitano, Chief Executive Officer, of Cleantech Lithium PLC, said: "We are delighted with the maiden JORC Inferred resource estimate of 0.53 million tonnes of LCE at a grade of 305mg/L Lithium from our first well at Francisco Basin. The resource estimate provides the basis for a Scoping Study with a base case production rate of 20,000 tonnes of LCE per annum, expected to utilise 100% renewable energy for process power providing green lithium to the EV industry.  Two of our three projects in Chile now have resource estimates, with the total lithium resource exceeding 2 million tonnes LCE.

"Further upgrades are planned in 1Q 2023 based on fieldwork to commence in the next few weeks. We look forward to continuing to update the market on our progress."

Further Information

Project Background

Francisco Basin is located within 100km of the Company´s more advanced Laguna Verde project, as shown in Figure 1.  The project has excellent infrastructure with road access to the site and existing power and water supply lines traversing the project area.  There has previously been no lithium exploration drill hole completed at the project. Surface sampling indicated elevated lithium concentrations and a geophysics programme was undertaken which generated a low resistivity target zone of 10 - 15km², which was interpreted to be a hypersaline sub-surface aquifer. 

 

Figure 1: Location of the Francisco Basin Project

Resource Summary

The resource estimate is based on the results from the completion of the first well (well FB01) of an intended four well resource drill programme at the project.  The resource estimate is in the Inferred category under the JORC code.  Table 1 outlines the resource reported in accordance with the JORC Code (2012) and estimated by a Competent Person as defined by the JORC Code. As the Company's interest is 100%, the resources are stated both gross and net attributable.

Table 1: Francisco Basin Resource Estimate - September 2022

Increased and Upgraded Resource Estimate Planned for 1Q 2023

On completion of the three remaining wells in the programme, an expanded and upgraded resource estimate is planned. The drill programme is expected to remobilise in October 2022 and is targeted to be completed in late 4Q 2022 or early 1Q 2023.  This paves the way for a potentially significant expansion in the resource estimate in 1Q 2023.  Based on drill hole density the Francisco Basin resource estimate is expected to be upgraded into the higher confidence Measured and Indicated category, which will provide the basis for undertaking a Pre-Feasibility Study on the project.

Geological Setting

The Central Andes Altiplano salars form in closed topographic depressions at all elevations from 1,000m to over 4,000m above sea level. They generally represent the end result of a basin infill process that starts with erosion of surrounding relief, which deposits colluvial material, gravels, sheet sands, silts and clays. Alitplano salars are generally divided into mature halite salars and immature clastic salars, the later characterised by greater moisture regimes and a sediment profile with higher porosities. Francisco Basin is classified as an immature salar which features a hyper saline lagoon at the topographic low point of the basin.  

The Francisco Basin is an elongated shaped basin aligned on a NW-SE axis bounded on all sides by volcanic mountain ranges.  The surface or margin of the Laguna is at an elevation of approximately 4,136m. To the south-east the basin forms a gently rising plain which forms the focus area of the project.

Drilling Programme

A resource drill programme consisting of 4 wells was designed to test a 10 - 15km² target zone based on the interpreted extent of a low resistivity brine aquifer identified by a transient electromagnetic geophysics survey. The planned hole locations are shown in Figure 2. A drilling programme was undertaken from March to the end of May 2022, when the programme was suspended due to the onset of winter weather conditions.  Well FB01 was completed to a depth of 335m and FB02 reached 106.5m when the programme was suspended.

Figure 2: Francisco Basin Project Drill Programme Map

Drilling Method

The drilling programme utilized a reverse circulation flooded system. In well FB01, the well was drilled with a 20-inch diameter to the final depth, then an 8 inch diameter PVC casing was installed with silica gravel used to pack the casing.  The PVC casing is slotted over the depth interval of the brine aquifer.  This is a wide diameter well design which is suitable for the high-volume pump tests required for final feasibility level hydrogeological modelling, and ultimately for conversion to production bores in a commercial stage operation.

Fig. 3: Drill Rig at FB01, 2Q 2022

Stratigraphy of Completed Well

The stratigraphy of well FB01 features: from 0 - 140m a zone dominated by fine gravels and sands; 140m to 284m clays with subordinated sands and gravels; 284m to 311m sands with subordinated fine gravels; 311m to 317m intrusive rock composed by a Quartz monzonite. From 317m to 326m intercalations of clays, sands, gravel and intrusive rock, and from 326m to 335m andesitic rock with sands and clays correspondent to the basement.  This stratigraphy is further depicted in Fig. 4.  The water table was intersected from 20m depth with a fresh aquifer present from 20m to 99m, and a brine aquifer from 99m to the end of the hole.  At 180m the drilling intersected a pressurised brine aquifer that caused a breakage in the drilling head due to the high pressure.

Fig. 4: Stratigraphy of Well FB01

Brine Sampling Collection and Analysis

Brine was sampled with two methods, suction samples and bailer samples.  After completion of the well with 8-inch PVC and silica gravel, a well development process including purging the well of three well volumes of brine followed, then a minimum 5 day stabilisation period applied. Suction samples were collected via air lifting of samples into a 20-litre bucket. Samples were taken from every 3m.  This operation used a rig with a compressor as shown in Fig. 5.   Bailer samples were then collected by a specialist water sampling contractor, using a double valve bailer that is raised and lowered with an electric cable winch as shown in Fig. 6. Bailer samples were collected from every 6m.

  Fig. 5: Suction Sampling with Compressor     Fig. 6: Bailer Sampling using Electric Winch

Hole FB01 was completed to 335m encountering a brine aquifer from 99m to 311m, or an aquifer thickness of 212m.  The hole was cased and developed with samples collected every 6 metres, which were then delivered to ALS Chile.  The lithium grades of the 34 samples from FB01 ranged from 255 to 324mg/L, with an average grade of 305mg/L, as presented in Table 2 below. Samples were sealed in clean polyethylene bottles, labelled and package on site for shipment to ALS Life Science Chile laboratory in Santiago.  The suite of element analysis covered B, Ca, Cu, Li, Mg, K, Na, CACO₃, CL, SO4, TDS and Density.  A detailed QA/QC procedure was applied for sample collection and analysis.

Table 2 Brine Assays Received for FB01

Sample ID	Sample Depth (m)	Lab Sample ID	Total Dissolved Solids (mg/L)		Lithium Grade (mg/L)
FB01-102	102	FBS001	115,820		313
FB01-108	108	FBS002	122,730		321
FB01-114	114	FBS003	125,190		319
FB01-120	120	FBS004	113,820		319
FB01-126	126	FBS005	112,310		300
FB01-132	132	FBS006	108,580		314
FB01-138	138	FBS007	125,820		317
FB01-144	144	FBS009	110,840		308
FB01-150	150	FBS010	106,130		304
FB01-156	156	FBS011	102,870		300
FB01-162	162	FBS012	104,050		318
FB01-168	168	FBS013	114,320		314
FB01-174	174	FBS014	120,590		305
FB01-180	180	FBS016	114,320		286
FB01-186	186	FBS017	94,410		266
FB01-192	192	FBS018	121,080		312
FB01-198	198	FBS019	106,870		314
FB01-204	204	FBS020	103,814		324
FB01-210	210	FBS021	126,214		318
FB01-216	216	FBS022	115,534		313
FB01-222	222	FBS023	110,244		303
FB01-228	228	FBS024	95,624		255
FB01-234	234	FBS025	116,440		309
FB01-240	240	FBS027	116,984		314
FB01-246	246	FBS028	110,074		312
FB01-252	252	FBS029	114,024		315
FB01-258	258	FBS030	100,304		313
FB01-264	264	FBS031	104,614		312
FB01-270	270	FBS032	101,134		292
FB01-276	276	FBS033	111,644		315
FB01-282	282	FBS034	96,854		293
FB01-288	288	FBS035	97,254		269
FB01-294	294	FBS036	106,114		287
FB01-300	300	FBS037	111,294		300
				Average	305

Sediment Sampling and Specific Yield Calculation

To date no bulk sampling for porosity studies has been carried out. The specific yield (or effective porosity) has been inferred for the resource estimate, based on the geological logging of the sediment cuttings collected from FB01. The specific yield values assigned to each of the different logged lithologies were based on industry references as presented in Table 3 below.

Table 3: Assigned Specific Yield Values for FB01 Logged Lithologies

LITHOLOGY	CODE	ASSIGNED SPECIFIC YIELD %
Sand	SD	25
Gravel	GV	22
Clay	CL	4
Tuff	TF	11

Note: Values from Morris & Johnson, 1967; Heath, 1987 and Huston et. al. 2011.

The lithological logging of FB01 is presented in Table 4 with major and minor lithologies labelled as lithology 1 and 2 respectively.  Applying the assigned specific yields based on Table 3, weighted by the logging for lithology unit of the brine aquifer column and then, weighted by the unit lengths, produced an overall inferred Specific Yield value of 12.16%, which is consistent with the basin lithology.

Table 4:  FB01 Specific Yield Weighted by Lithology Unit Lengths

HOLE ID	FROM m	TO m	LITHOLOGY UNIT LENGTH	CODE	LITHOLOGY 1	LITHOLOGY 2	SY WEIGHTED BY LITHOLOGY
FB01	99	116	17m	GV-SD	65%	35%	23.1%
FB01	116	119	3m	CL-SD	75%	25%	9.3%
FB01	119	131	12m	SD-CL	85%	15%	21.9%
FB01	131	140	9m	GV-SD	70%	30%	22.9%
FB01	140	182	42m	CL-SD	90%	10%	6.1%
FB01	182	185	3m	TF-CL	60%	40%	8.2%
FB01	185	224	39m	CL-SD	90%	10%	6.1%
FB01	224	233	9m	SD-CL	70%	30%	18.7%
FB01	233	278	45m	CL-SD	90%	10%	6.1%
FB01	278	284	6m	TF	100%	0%	11%
FB01	284	311	27m	SD-GV	85%	15%	24.6%
TOTAL (WEIGHTED AVERAGE)							12.2%

Resource Model

The 3D resource model applied a 2.5 km area around well FB01, limited by the boundary of the Nevado Tres Cruces National Park to the south and the basin limit to the west, highlighted by the geological contact provided by the De La Laguna Hill volcanic rock and the foot hill alluvial deposits. The resultant radial area used in the model is shown in Fig. 7, which equals an area of 12.54 km².  Aquifer thickness is based on the intercepted brine aquifer in well FB01.  The well was completed to a depth of 335m with the brine aquifer intercepted from 99m and the first evidence of basement lithology encountered at 311m, resulting in an aquifer thickness of 212m. 

Fig. 7: Radial Area used in the Resource Model

Resource Calculation

The resource calculation is presented in Table 5. Aquifer volume is based on the radial area of 12.54 km² and aquifer thickness 211m resulting in a total volume of 2.67 billion m³. The specific yield applied to calculate effective volume is 12.2% inferred from the geological logging of the sediment cuttings from the well.  The lithium grade used in the estimate is based on the average of 34 samples collected from regular intervals from the aquifer, which ranged from 255 to 324mg/L, with an average grade of 305mg/L. For the calculation of resources in Lithium Carbonate Equivalent, an industry standard 5.323 factor was applied to the Lithium mass.

Table 5:  Francisco Basin Inferred Resource Calculation

Total Inferred Resource
Aquifer Volume	m3	2,669,080,000
Specific Yield	%	12.2%
Aquifer Effective Volume	m3	324,560,128
Average Grade Li	mg/l	305
Li Mass	tonne	99,003
Inferred Resource (Lithium Carbonate Equivalent)	tonne	526,994

For further information contact:
CleanTech Lithium PLC
Aldo Boitano/Gordon Stein	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 (Joint Broker) Daniel Fox-Davies Canaccord Genuity Limited (Joint Broker) James Asensio Gordon Hamilton	[phone] [e-mail] [phone]

Competent Person

The information in this release relates to drilling results, geology, brine assays reports, sediment sampling / specific yield calculation and resource calculation are 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.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Gordon Stein, Director and CFO.

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 2024/2025, 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 l ithium 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.  The Company has also further applied for an additional 119 exploration licences at Llamara, as a low cost and commitment greenfield project to complement the existing more advanced projects.

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.

**ENDS**

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Sampling techniques	· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. · Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. · Aspects of the determination of mineralisation that are Material to the Public Report. · In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	· After the FB01 well casing with 8-inch PVC and silica gravel, a development process took place. The well development includes an injection of a hypochlorite solution to break the drilling additives, enough solution actuation waiting time and then, purging of minimum three well volumes operation to clean the cased well from drilling mud and injected fresh water.   · The developing process was made using a small rig, a high-pressure compressor and 2-inch threaded PVC that can be coupled to reach any depth. The purging/cleaning operation is made from top to bottom, injecting air with a hose inside the 2-inch PVC and "suctioning" the water, emulating a Reverse Circulation (Air-Lift) system. · Once the well is verified, clan assuring that the purged water is brine coming from the aquifer, the PVC Casing Suction (Air-Lift) samples were taken from bottom to top, while the 2-inch PVC is extracted from the well. A 20-liter bucket is filled with brine and the brine sample is obtained from the bucket once the remaining fine sediments that could appear in the sample decant. · One-liter Samples every 3 m were taken and, every 6 m sent to laboratory to preserve a second sample set for auditory purposes.   · Conductivity-based TDS and T°C were measured in every sample with a Hanna Multiparameter. All materials and sampling bottles were first flushed with brine water before receiving the final sample. · After the PVC Casing Suction sampling in FB01, a stabilization period of minimum 5 days took place before proceed with the PVC Casing Bailer sampling to let the well match the aquifer hydro-chemical stratigraphy. · PVC Casing Bailer sampling process at FB01was made by JCP Ltda., specialists in water sampling. Samples were taken from the interest depths with a double valve discardable bailer. The bailer is lowered and raised with an electric cable winch, to maintain a constant velocity and avoid bailer valves opening after taking the sample from the desire support. · PVC Casing Bailer samples were obtained every 6 m support to avoid disturbing the entire column during the sampling process. Conductivity-based TDS and Temperature °C were measured for every sample with a Hanna multiparameter.
Drilling techniques	· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	· In Francisco Basin Reverse flooded drilling system with 20 inch diameter was used in well FB01, from 0 m to its final depth 335 m. Then, were cased and habilitated with 8-inch PVC and silica gravel up to 333.5 m, with smooth PVC (blind) from 0 to 99 m and slotted PVC from 99 to 333.5 m. · FB02 were drilled with the same technic. From 0 to 36 m, with 20-inch diameter. Then, steel casing was installed for stabilization purposes. From 36 m to its final depth 106.5 m, 14-inch diameter was used. Finally, the well was conditioned with heavy drilling mud for stabilization and preservation purposes and leaved to be completed in the next drilling season.
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed. · Measures taken to maximise sample recovery and ensure representative nature of the samples. · Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	· Only cuttings were recovered for geological logging purposes.
Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. · Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. · The total length and percentage of the relevant intersections logged.	· Continue geological logging took place during drilling · For all brine samples conductivity-based TDS and Temperature °C parameters were measured during the sampling
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all core taken. · If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. · For all sample types, the nature, quality and appropriateness of the sample preparation technique. · Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. · Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. · Whether sample sizes are appropriate to the grain size of the material being sampled.	· During the brine samples batch preparation process, Standard (internal standard composed by known stable brine), Duplicates and Blank samples (distilled water) were randomly included in the batch in the rate of one every twenty original samples. · After check samples insertion, all samples were re-numbered before submitted to laboratory. The author personally supervised the laboratory batch preparation process.
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. · For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. · Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	· Brine samples were assayed on ALS Life Science Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2. · Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85. · Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012. · Total Disolved Solids (TDS) with method describe on INN/SMA SM 2540 C Ed 22, 2012 · Sulfate according method described on INN/SMA SM 4500 SO4-D Ed 22, 2012 · Duplicates were obtained randomly during the brine sampling. Also, Blanks (distilled water) and Standards were randomly inserted during the laboratory batch preparation. · The standards were prepared on the installations of Universidad Católica del Norte using a known stable brine according procedure prepared by Ad Infinitum. Standard nominal grade was calculated in a round robin process that include 04 laboratories. ALS life Sciences Chile laboratory was validated during the round robin process. · All check samples were inserted in a rate of one each twenty original samples · For the TEM Geophysical survey a Applied Electromagnetic Research FAST-TEM 48 equipment was used, composed by a transmitter and receiver unit, a PC and the circuit cables (buckle), with batteries as power source. A coincident transmission / reception loop of 220x220 m2 was used for the 98 surveyed stations, reaching a survey depth of 400 m
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel. · The use of twinned holes. · Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. · Discuss any adjustment to assay data.	· The assay data was verified by the author against the assay certificate. · Geophysics were used as delivered by Terra Pacific · Geological logs were managed by geology contractor GEOMIN and checked by the competent person · Brine samples batches were prepared personally by the author or by JCP Ltda., with the supervision of the author. All data are in EXCEL files
Location of data points	· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. · Specification of the grid system used. · Quality and adequacy of topographic control.	· Drillhole collars were captured with non-differential hand held GPS. Position was verified by topographic features Total station topographic capture of the drillhole collars is pending  · The TEM geophysical survey coordinates were captured with non-differential hand held GPS. · The coordinate system is UTM, Datum WGS84 Zone 19J
Data spacing and distribution	· Data spacing for reporting of Exploration Results. · Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. · Whether sample compositing has been applied.	· PVC Casing Suction brine samples were taken every 3 m and, sent to laboratory every 6 m · PVC Casing Bailer brine samples were taken every 6 m · For TEM geophysical survey a 750 m stations distance, in lines every 750 m were used. · The author believes that the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Resource Estimation
Orientation of data in relation to geological structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. · If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security	· The measures taken to ensure sample security.	· All brine samples were marked and immediately transported them to Copiapó city warehouse · The brine water samples were transported without any perturbation directly to a warehouse in Copiapó city, were laboratory samples batch was prepared and stored in sealed plastic coolers, then sent via currier to ALS laboratory Santiago. All the process was made under the Competent Person direct supervision. · ALS personnel report that the samples were received without any problem or disturbance
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· The assay data was verified by the Competent Person against the assay certificate. · No audits were undertaken

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Mineral tenement and land tenure status	· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. · The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	· CleanTech Lithium holds in Francisco Basin 12,579 hectares of Mining Concessions, separated in 6,479 hectares of Exploitation Concessions and 6,100 of Exploration Mining Concessions. · The Competent Person relies in the Mining Expert Surveyor Mr, Juan Bedmar. · All concession acquisition costs and taxes have been fully paid and that there are no claims or liens against them · There are no known impediments to obtain the licence to operate in the area
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· No Lithium Exploration works has been done by third parties in the past
Geology	· Deposit type, geological setting and style of mineralisation.	· Francisco Basin are classified as the "Salar Marginal Facies" of a hyper saline lagoon that approaches to an immature clastic salar classification (Negro Francisco lagoon), with the lagoon corresponding to the "salar nucleus"
Drill hole Information	· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. · If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	· The following drillhole coordinates are in WGS84 zone 19 J Datum · FB01 E479,907 N6,959,274 ELEV 4,151 m a.s.l. · FB02 E483,350 N6,957,900 ELEV 4,164 m a.s.l.
Data aggregation methods	· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. · Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. · The assumptions used for any reporting of metal equivalent values should be clearly stated.	· No low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data · No data aggregate of any kind has been implemented
Relationship between mineralisation widths and intercept lengths	· These relationships are particularly important in the reporting of Exploration Results. · If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. · If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	· The relationship between aquifer widths and intercept lengths are direct
Diagrams	· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	· Addressed in the report
Balanced reporting	· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	· All results have been included.
Other substantive exploration data	· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	· All material exploration data and results have been included
Further work	· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). · Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	· Drilling to be undertaken upgrade Inferred Resources to Measured + Indicated and Indicated Resouces to Measured Resources · Hydraulic testing be undertaken, for instance pumping tests from wells to determine, aquifer properties, expected production rates, upgrade Resources to Reserves and infrastructure design · Aquifer recharge dynamics be studied to determine the water balance and subsequent production water balance. For instance, simultaneous data recording of rainfall and subsurface brine level fluctuations to understand the relationship between rainfall and aquifer recharge, and hence the brine recharge of the aquifer

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Database integrity	· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. · Data validation procedures used.	· Cross-check of laboratory assay reports and Database · QA/QC as described in Sampling Section
Site visits	· Comment on any site visits undertaken by the Competent Person and the outcome of those visits. · If no site visits have been undertaken indicate why this is the case.	· Continue supervision of March to May 2022 drilling campaign.
Geological interpretation	· Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit. · Nature of the data used and of any assumptions made. · The effect, if any, of alternative interpretations on Mineral Resource estimation. · The use of geology in guiding and controlling Mineral Resource estimation. · The factors affecting continuity both of grade and geology.	· For the geological interpretation was made based in the TEM study and drillholes FB01 and FB02  · Low resistivities are associated with sediments saturated in brines, but also with very fine sediments or clays · Drillhole FB01 confirm the geological interpretations
Dimensions	· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	· The Brine Resource is a horizontal lens with an area of 12.56 km2 (2.5 km radius around FB01) and 212 m wide
Estimation and modelling techniques	· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. · The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. · The assumptions made regarding recovery of by-products. · Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). · In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. · Any assumptions behind modelling of selective mining units. · Any assumptions about correlation between variables. · Description of how the geological interpretation was used to control the resource estimates. · Discussion of basis for using or not using grade cutting or capping. · The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	· Lithium (mg/l) PVC Casing Suction samples values are in general homogeneously distributed along the FB01 drillhole, there is no point in estimate the lithium content via Kriging or other geostatistical method given that there is only one drillhole. The use of the samples values average 305.04 mg/l Li was be used for the Brine Resource Estimation. · The geological units in the basin filling correspond to variable proportions of gravels, sands and clays These units have a moderately to very high porosity so, a conservative specific yield of 12.2% was estimated, depending on the logged proportions of its content
Moisture	· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	· Not applicable for brine resources
Cut-off parameters	· The basis of the adopted cut-off grade(s) or quality parameters applied.	· No cut-off parameters were used
Mining factors or assumptions	· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	· Mining will be undertaken by pumping brine from production wells and re-injection · Pumping tests should be undertaken to ascertain hydraulic properties of the host aquifer
Metallurgical factors or assumptions	· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	· Direct Lithium Extraction technology (DLE) with spent brine reinjection is planned for Francisco Basin. Production Plant / Camp, production/reinjection wells, and brine mixing ponds are planned to install on the concession area.
Environmen-tal factors or assumptions	· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	· The main environmental impacts expected is the Production Plant / Camp and the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project
Bulk density	· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. · The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. · Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	· Bulk density is not relevant to brine resource estimation. · For porosity a conservative specific yield of 12.2% was estimated, depending on the logged proportions of the sediments content
Classification	· The basis for the classification of the Mineral Resources into varying confidence categories. · Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). · Whether the result appropriately reflects the Competent Person's view of the deposit.	· For the brine Resource, the data and assumptions are only considered sufficient to assign an Inferred Resource classification · The result reflects the view of the Competent Person
Audits or reviews	· The results of any audits or reviews of Mineral Resource estimates.	· No audit or reviews were undertaken.
Discussion of relative accuracy/ confidence	· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. · The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. · These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	· The estimated tonnage represents the in-situ brine with no recovery factor applied. It will not be possible to extract all of the contained brine by pumping from production wells. The amount which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers. · No production data are available for comparison

 

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