REG - CleanTech Lithium - 3 Projects - Operations Update
06/06/2023 07:00
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RNS Number : 7252B CleanTech Lithium PLC 06 June 2023
6 June 2023
CleanTech Lithium PLC ("CleanTech Lithium" or "CTL" or the "Company")
Laguna Verde Records Assays up to 417mg/L
Additional Wells at Francisco Basin to Upgrade Resource Estimate
Llamara Drilling Progress Update
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTC:CTLHF), an exploration and
development company advancing next-generation sustainable lithium projects in
Chile for the EV transition, shares the latest operations update and latest
supportive commentary from the Chilean government. CTL remains in positive
dialogue with Chilean Government representatives, following recent
announcements on Chile's National Lithium Strategy, as the Company continues
to progress its projects towards production of battery grade 'green' lithium,
through Direct Lithium Extraction ("DLE").
Laguna Verde
· LV02 re-sampling in Q2 2023 - assays from re-sampling of well LV02
received, with an improvement in average lithium grade to 203mg/L and a peak
grade of 417mg/L lithium
· New wells at LV05 and LV06 completed Q2 2023 - reached drilling
depths of 434m and 405m with aquifer thickness of 375m and 342m respectively
· At LV05, 62 samples were collected and analysed with an average
lithium grade of 202mg/L, and at LV06 53 samples recorded an average lithium
grade of 174mg/L
· Based on the completion of the 2023 drilling and pump test
programmes, a JORC resource upgrade is expected in the coming weeks
Francisco Basin
· All three new wells planned for the 2023 drilling campaign completed
and two additional wells added to the programme underway to further test the
extension of the resource
· JORC resource upgrade expected early Q3 2023
· Scoping Study nearing completion to follow JORC resource upgrade
Llamara
· Exploration drill hole LL01 drilled to ~300m depth, encountered
porous sandstone that recorded brine and a gas sequence which, for safety
reasons, necessitated hole shut-in
· Brine encountered at shallower depth than expected which is seen as a
positive sign
· Following evaluation of seismic data, a second exploration drill hole
LL02 has recently commenced, drilling reaching a depth of 183m to date
· Field programme on sampling of surface evaporite deposit to commence
in Q3 2023
Chile's National Lithium Strategy / Minister of Mining Clarification
· Minister of Mining, Marcela Hernando, clarifies in a recent interview
with Mining.com that the government will only seek control of the operation in
projects that are considered 'strategic' and currently the only strategic
lithium area is in Salar de Atacama
· The Company confirms that its projects are not subject to state
participation requirements but the Company has the option to invite a state
company to participate and will endeavour to develop the projects to the
optimal benefit of all stakeholders
Aldo Boitano, Chief Executive Officer, of CleanTech Lithium PLC, said:
"CleanTech Lithium continues to make significant progress on the ground across
all three of our projects, with drilling campaigns running simultaneously and
delivering results and valuable insights to inform our path to production.
"At Llamara, while unexpected to encounter gas which required the well to be
remediated before reaching the intended depth, the Board is encouraged by the
findings, encountering brine at shallower depths than expected. We have
already commenced drilling a well in a new location which, based on seismic
data, is not expected to intersect gas.
"In the coming weeks we will be updating the market on JORC upgrades from
Laguna Verde and from Francisco Basin, with the Scoping Study for Francisco
Basin following shortly afterwards.
"We continue to have very positive discussions with the Government and state
entities regarding the development of our projects and will provide further
updates on progress in the coming weeks."
Further Information
Operations Update
Laguna Verde
Re-sampling of LV02 - Assays averaging 203mg/L and up to 417mg/L Lithium
recorded
LV02 was one of three drill holes completed and sampled in 2022 which
contributed to the current JORC compliant resource estimate of 1.51 million
tonnes of Lithium Carbonate Equivalent (LCE), as shown in Figure 1. The well
was drilled to a depth of approximately 300m with the brine aquifer recorded
from 55m to 290m.
During the drilling campaign in 2022, LV02 could not be developed effectively
and sampled with an electronic bailer, which is a more accurate sampling
method. This contributed to samples having a dilution factor from the fresh
water used during drilling. During the 2023 exploration season the well was
successfully developed, which involves purging multiple volumes of the well
brine, and sampled with an electronic bailer, to collect higher quality
samples.
Fig 1: Laguna Verde Resource Drill Programme Map
A total of 29 samples were recorded from the aquifer zone with the electronic
bailer, as shown in Fig. 2, and submitted for analysis by independent
laboratory, ALS Chile. The average lithium grade for the 29 samples was
203mg/L, with an increasing trend with depth and highest grades of 299mg/L and
417mg/L Lithium recorded. This compares to the average grade of 191mg/L from
the sampling during the 2022 programme. The use of electronic bailer samples
instead of discardable bailer drilling samples will also contribute to the
estimation of a Measured resource estimate for the well, versus the previous
Indicated resource estimate.
Figure 2: Bailer Sampling using an Electronic Bailer
Assay Results from Wells Completed in 2023: LV04 - LV06
At LV05 drilling reached a depth of 434m with an aquifer thickness of 375m. A
total of 62 samples were collected from every 6m of the aquifer with an
electronic bailer and submitted for laboratory assay. The average lithium
grade of the 62 samples is 202 mg/L with a range of 175 mg/l to 315 mg/L
lithium. At LV06, drilling reached a depth of 405m with an aquifer thickness
of 342m. A total of 53 samples were collected with an electronic bailer every
6m with assay results received. The average lithium grade of the samples is
174mg/L Lithium with a range of 147mg/L to 225mg/L lithium.
Well LV04 was drilled on the south-east margin of the resource area and
lithium grades were low, which will result in the resource area not being
extended in the area of LV04 in the 2023 upgrade.
Lithium grades encountered at Laguna Verde have shown significant variation in
grades at various depths. For example, at LV02 grades ranged from 90mg/L to
417mg/L across the aquifer zone. In a commercial operation, an operating well
would be cased selectively with screens over the higher grade levels and blank
casing over lower grade levels, to ensure feed brine utilises higher grade
brine than the overall average grade of the aquifer.
There will be a JORC resource upgrade in early Q3 which will include the
results of wells completed in the 2023 drill programme, as well as the recent
pump tests completed at LV05 and LV06, which were reported to the market on
May 30(th) 2023 and is expected to result in a significant rise in the
proportion of resources in the Measured and Indicated category.
Francisco Basin Project Exploration Drill Programme
At Francisco Basin we have now completed the three wells originally planned
for the 2023 resource drill programme, while a further two wells have been
added to the programme which is currently underway. The status of the wells
is provided as per the table below.
2023 Drill Programme Well Depth Status at 04/06/2023
FB02 369 Casing completed, brine sampling to commence
FB03 320 Casing completed, brine sampling to commence
FB04 415 Casing underway
FB05 452 Completed, core samples dispatched for porosity tests, casing underway
FB06 204 Drilling underway
Wells FB05 and FB06, shown in Figure 3, were added to the programme as these
were within the programme budget and have the potential to extend the resource
area. FB04 is a water well completed with 8-inch casing which can be used for
pump tests. FB05 and FB06 use the diamond drill method that collects core
samples which will be sent to an independent laboratory in the US specialising
in porosity analysis, to produce a porosity estimate that will be used in the
JORC resource estimate.
Fig 3: Francisco Basin Resource Drill Programme Map
After the completion of the 2023 drill programme, brine sampling and
laboratory assay work, a JORC resource upgrade at the Francisco Basin project
is expected in early Q3 2023. A Scoping Study on the project is nearing
completion, pending the completion of the JORC resource upgrade. New lithium
pricing forecast provided by Canaccord Genuity1 will be used for the Francisco
Basin Scoping Study, which will also be reflected in a revision to the
economics of the Laguna Verde Scoping Study completed in January 2023.
Llamara Project Exploration Drill Programme
The Llamara Project is a greenfield exploration project. In late April a drill
rig was mobilised to the project with drilling of the maiden exploration drill
hole, LL01, commencing on April 23(rd). The programme is based on utilising a
diamond drilling method with a 6-inch diameter, which allows for the
collection of core samples and water samples via using a packer system. This
is a relatively low-cost method of drilling. Drilling of LL01 progressed
rapidly with good core recovery to 292m. At 290m, drilling transitioned from
dense clays to a porous sandstone, as shown in Fig 4.
Fig.4: LL01 Core Sample Showing Clay to Sandstone Transition
In this sandstone layer, brine was recorded along with a flow of gas which was
unexpected based on regional geology. Historically there have been four deep
oil and gas exploration holes drilled within the basin which did not record
gas. As the gas is present at a shallow depth, the pressure and flow rate were
modest, however, for safety reasons, it necessitated the completion of the
well which has now been remediated and sealed with concrete.
Fig.5: LL01 Drill Site
Two brine samples were collected from the sandstone layer with a relatively
high salinity based on field measurement. This is a positive sign for the
exploration programme as brine was expected to be encountered at significantly
deeper levels. As LL01 was unable to be drilled to the target depth, a second
exploration drill hole LL02 has commenced at an alternative location
approximately 6km west of LL01, as shown in Fig. 6, which is closer to the
historical oil and gas well Hilaricos, in which no gas was recorded in
drilling logs to 980m. Following evaluation of a historical seismic survey,
the gas sequence is interpreted by the Company to be associated with a deep
fracture zone east of LL01.
The discovery of the gas sequence at LL01 will be further evaluated from a
resource potential perspective, however the Company´s focus at the Llamara
project remains on the evaluation of the brine aquifer and its potential to
host a lithium resource. A sampling programme targeting a large near surface
evaporite layer, which has been sampled in other areas of the basin and
returned elevated lithium values, is also planned.
Fig. 6: LL01 and LL02 Drill Site Locations
Chile's National Lithium Strategy / Minister of Mining Clarifies Strategic
Project Definition
In a recent interview with Mining.com
(https://www.mining.com/chile-to-negotiate-with-lithium-partners-on-case-by-case-basis-minister/)
, Minister of Mining, Marcela Hernando, addressed the concerns raised by the
industry. In the interview, the Minister clarified the state will only be
moving to majority state participation with projects considered to be
'strategic' that operate in the Salar de Atacama. This area has currently been
licensed by the government to leading lithium producers SQM and Albemarle. The
new strategy will see these contracts being renegotiated and revised in 2030
and 2043 respectively.
CTL's projects are outside of the Salar de Atacama meaning the Company
understands that it can apply for a CEOL (Operating Contract) itself and has
the option to invite a state entity to participate. CTL continues to have
constructive discussions with the Government and other state participants on
this, the benefits of DLE and the sustainability credentials this method
offers to produce lithium. As stated by the Government, DLE technology is now
a priority for all future lithium projects, and CTL is well placed to help
drive the changes necessary to deliver on this.
**ENDS**
For further information contact:
CleanTech Lithium PLC
Aldo Boitano/Gordon Stein Jersey office: +44 (0) 1534 668 321
Chile office: +562-32239222
Or via Celicourt
Celicourt Communications +44 (0) 20 7770 6424
Felicity Winkles/Philip Dennis/Ali AlQahtani cleantech@celicourt.uk (mailto:cleantech@celicourt.uk)
Dr. Reuter Investor Relations +49 69 1532 5857
Dr. Eva Reuter
Harbor Access - North America +1 475 477 9401
Jonathan Paterson/Lisa Micali
Porter Novelli - Chile +56 2 2335 1693
Ernesto Escobar Ernesto@publicoporternovelli.cl (mailto:Ernesto@publicoporternovelli.cl)
Beaumont Cornish Limited
(Nominated Adviser) +44 (0) 207 628 3396
Roland Cornish/Asia Szusciak
Fox-Davies Capital Limited +44 (0) 20 3884 8450
(Joint Broker)
Daniel Fox-Davies daniel@fox-davies.com (mailto:daniel@fox-davies.com)
Canaccord Genuity Limited +44 (0) 207 523 4680
(Joint Broker)
James Asensio
Gordon Hamilton
Notes
Competent Person
The information in this release relates to drilling results, geology and 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.
About CleanTech Lithium
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTC:CTLHF) 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 three prospective lithium projects - Laguna Verde,
Francisco Basin, and Llamara - 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.
Laguna Verde - 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 · Lagoon samples correspond to water brine samples from the surface
specific specialised industry standard measurement tools appropriate to the lagoon, in an 800 m sampling grid, including eight (08) sampling duplicates in
minerals under investigation, such as down hole gamma sondes, or handheld XRF random positions. The samples were taken from 0.5 m depth and, for positions
instruments, etc). These examples should not be taken as limiting the broad with above 5 m depth a bottom sample were also obtained.
meaning of sampling.
· Include reference to measures taken to ensure sample representivity · For every sample, two (02) liters of brine were obtained with a
and the appropriate calibration of any measurement tools or systems used. one-liter double valve bailer, using a new bailer for each sampling position.
All materials and sampling bottles were first flushed with 100 cc of brine
· Aspects of the determination of mineralisation that are Material to water before receiving the final sample.
the Public Report.
· Sub surface brine samples were obtained with four methods: Packer
· In cases where 'industry standard' work has been done this would be sampling, PVC Casing Suction sampling, PVC Casing Discardable Bailer sampling,
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m and PVC Casing Electric Valve Bailer.
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 · For the Packer sampling, a packer bit tool provided by the drilling
information. company (Big Bear) was used. Once the sampling support was sealed, a purging
operation took place until no drilling mud was detected After the purging
operation, half an hour waiting took place to let brine enter to the drilling
rods thru the slots in the packer tool before sampling with double valve
bailer.
· Successive one-liter samples with half an hour separation were taken
with a steel made double valve bailer. Conductivity-based TDS was measured in
every sample with a Hanna Multiparameter model HI98192. The last two samples
that measure stable similar TDS values were considered as non-contaminated and
identified as the Original and Reject samples.
· Packer samples were obtained every 18 m support due the tools
movement involved to take every sample.
· PVC Casing Suction brine samples were extracted after the well casing
with 3-inch PVC and silica gravel and the well development (cleaning) process.
The well development includes an injection of a hypochlorite solution to break
the drilling additives, enough solution actuation waiting time and then,
purging of three well volumes operation to clean the cased well from drilling
mud and injected fresh water.
· The developing process was made by OSMAR drilling company 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 system.
· Once the well is clean and enough water is purged (at least three
times the well volume) and also, is verified that the purged water is brine
came from the aquifer, the PVC Casing Suction samples are 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.
· PVC casing Suction samples were taken every 6 m support due the
disturbing and mixing provoked by the suction process. Conductivity-based
TDS (Multi-TDS) and Temperature °C are measured for every sample with the
Hanna Multiparameter.
· After the development process and PVC Casing Suction sampling, a
stabilization period of minimum 5 days take place before this sampling to let
the well match the aquifer hydro-chemical stratigraphy.
· PVC Casing Discardable samples were obtained 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. A new bailer
was used for each well
· Discardable Bailer samples were obtained every 6 m support to
avoid disturbing the entire column during the sampling process.
Conductivity-based TDS (Multi-TDS), Temperature °C and pH were measured for
every sample with the Hanna Multiparameter
· On first quarter of 2023 Electric Bailer samples were taken from
wells LV05, LV06 and LV02, after it´s proper development. The samples were
obtained from the interest depths with a one litter electric bailer, that
seals in the sampling support with an electric valve activated by the
operator. This sampling process was made by Geodatos specialists.
· On all sampling procedures the materials and sampling bottles were
first flushed with 100 cc of brine water before receiving the final sample
· Packer samples are available in wells LV01, LV02 and LV03. PVC Casing
Suction samples are available in wells LV01, LV04, LV05 and LV06. PVC Casing
Discardable Bailer samples are available in wells LV01 and LV02. Electronic
Bailer samples are available in wells LV02, LV05 and LV06.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · On wells LV01 and LV03 diamond drilling with PQ3 diameter were used
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or up to 320 m depth. Below that depth the drilling diameter was reduced to HQ3
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc). · On wells LV02 and LV04 diamond drilling with PQ3 diameter were used
to their final depth
· In both diameters, a triple tube was used for the core recovery.
· Packer bit provided by Big Bear was used to obtain brine samples
(Except in drillhole LV04).
· Drillholes LV01, LV02 and LV04 were cased and habilitated with 3" PVC
and silica gravel. LV03 was not possible to case due well collapse and tools
entrapment
· Wells LV05 and LV06 were drilled with Reverse Flooded method in 14 ¾
inches diameter to their final depth
· Both wells, were cased and habilitated with 8-inch PVC and inert
gravel
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Diamond Core recovery were assured by direct supervision and
results assessed. continuous geotechnical logging
· Measures taken to maximise sample recovery and ensure representative · For LV05 and LV06 only cuttings were recovered for geological logging
nature of the samples. purposes
· 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.
Logging · Whether core and chip samples have been geologically and · Continue geological and geotechnical logging took place during
geotechnically logged to a level of detail to support appropriate Mineral drilling
Resource estimation, mining studies and metallurgical studies.
· For the surface lagoon brine samples, Ph and Temperature °C
· Whether logging is qualitative or quantitative in nature. Core (or parameters were measured during the sampling.
costean, channel, etc) photography.
· For the sub surface brine packer samples conductivity-based TDS and
· The total length and percentage of the relevant intersections logged. Temperature °C parameters were measured during the sampling
· Samples taken on first 2023 quarter, conductivity-based TDS,
Temperature °C and pH were measured during the sampling procedure
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · During the brine samples batch preparation process, the samples
taken. were transferred to new sampling bottles. Standard (internal standard composed
by known stable brine), Duplicates and Blank samples (distilled water) were
· If non-core, whether riffled, tube sampled, rotary split, etc and randomly included in the batch in the rate of one every twenty original
whether sampled wet or dry. samples. After check samples insertion, all samples were re-numbered before
submitted to laboratory. Before transferring each sample, the materials used
· For all sample types, the nature, quality and appropriateness of the for the transfer were flushed with distilled water and then shacked to remove
sample preparation technique. water excess avoiding contamination. The author personally supervised the
laboratory batch preparation process.
· 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.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · During 2022, brine samples were assayed on ALS Life Science Chile
laboratory procedures used and whether the technique is considered partial or laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on
total. QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · From year 2023 the samples were also assayed on ALS Life Science
the parameters used in determining the analysis including instrument make and Chile laboratory by ICP-OES method, described on QWI-IO-ICP-OES- 01 Edisión
model, reading times, calibrations factors applied and their derivation, etc. A, Modification 0 EPA 3005A; EPA 200.2, but now the full element suite was
requested as recommended by Don Hains in his auditory
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of · Total Density use the method described on THOMPSON Y, TROEH DE.
accuracy (ie lack of bias) and precision have been established. 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.
· Check samples were inserted in a rate of one each twenty original
samples during year 2022. From year 2023, check samples were inserted in a
rate of one each ten original samples
· For the bathymetry a Garmin Echomap CV44 and the Eco Probe
CV20-TM Garmin were used. The equipment has a resolution of 0.3 ft and max
depth measure of 2,900 ft.
· The bathymetry data was calibrated by density, using 1.14 g/cm3,
modifying the propagation velocity from the nominal value 1,403 m/s (1 g/cm3
density at 0°C) to a corrected value of 1,660 m/s (1.14 g/cm3 density at
0°C), reducing the original bathymetry depth data in 15%
· For the TEM Geophysical survey a Zonge Engineering and Research
Organization, USA equipment was used, composed by a multipurpose digital
receiver model GDP-32 and a transmitter TEM model ZT-30, with batteries as
power source.
· For the first survey campaign, made in May, 2021 a coincident
transmission / reception loop was used, were 167 stations use 100x100 m2 loop
and 4 stations use 200x200 m2 loop, reaching a survey depth of 300 m and 400 m
respectively, arranged in 11 lines with 400 m of separation.
· For the second TEM geophysical survey made in March 2022, 32 TEM
stations, arranged in 6 lines, with 400 m separation were surveyed. A
coincident Loop Tx=Rx of 200 x 200 m2 that can reach investigation depth of
400 m were used for this survey
Verification of sampling and assaying · The verification of significant intersections by either independent · The assay data was verified by the author against the assay
or alternative company personnel. certificate.
· The use of twinned holes. · Data from bathymetry and geophysics were used as delivered by
Servicios Geológicos GEODATOS SAIC
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. · Geological and geotechnical logs were managed by geology contractor
GEOMIN and checked by the competent person
· Discuss any adjustment to assay data.
· Brine samples batches were prepared personally by the competent
person. All data are in EXCEL files
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Samples coordinates were captured with non-differential hand held GPS
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · The bathymetry coordinates were captured by differential Thales
Navigation differential GPS system, consisting in two GPS model Promark_3,
· Specification of the grid system used. designed to work in geodesic, cinematic and static modes of high precision,
where one of the instruments is installed in a base station and the other was
· Quality and adequacy of topographic control. on board the craft.
· The TEM geophysical survey coordinates were captured with
non-differential hand held GPS.
· Drillhole collars were captured with non-differential hand held GPS.
Position was verified by the mining concessions field markings. Total station
topographic capture of the drillhole collars is pending
· The coordinate system is UTM, Datum WGS84 Zone 19J
· Topographic control is not considered critical as the lagoon and its
surroundings are generally flat lying and the samples were definitively
obtained from the lagoon
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Geochemical lagoon samples spacing is approximately 800 m, covering
the entire lagoon area
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Packer brine samples were taken every 18 m
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· PVC Casing Suction samples were taken every 6 m
· Whether sample compositing has been applied.
· PVC Casing Bailer samples (discardable and electric) were taken every
6 m
· For bathymetry two grids were used, one of 400 m and the other of 200
m in areas were the perimeter have more curves
· For TEM geophysical survey a 400 m stations distance was 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 · The lagoon is a free water body and no mineralized structures are
possible structures and the extent to which this is known, considering the expected in the sub surface deposits
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 keep on site before transporting
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 boxes, then sent via currier to ALS
laboratory Antofagasta. 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.
· The July 2021 JORC technical report were reviewed by Michael
Rosko, MS PG SME Registered Member #4064687 from MONTGOMERY & ASSOCIATES
CONSULTORES LIMITADA
· In the report he concludes that "The bulk of the information for
the Laguna Verde exploration work and resulting initial lithium resource
estimate was summarized Feddersen (2021). Overall, the CP agrees that
industry-standard methods were used, and that the initial lithium resource
estimate is reasonable based on the information available".
· The September 2022 JORC Report LAGUNA VERDE UPDATED RESOURCE
ESTIMATION REPORT, data acquisition and QA/QC protocols were audited on
October, 2022 by Don Hains, P. Geo. from Hains Engineering Company Limited (D.
Hains October 2022 QA/QC Procedures, Review, Site Visit Report).
· In the report he concludes that "The overall QA/QC procedures
employed by CleanTech are well documented and the exploration data collected
and analysed in a comprehensive manner. There are no significant short comings
in the overall programme.
· Respect the exploration program his comments are "The overall
exploration program has been well designed and well executed. Field work
appears to have been well managed, with excellent data collection. The drill
pads have been restored to a very high standard. The TEM geophysical work has
been useful in defining the extensional limits of the salar at Laguna Verde".
· Respect the Specific Yield his comments are "RBRC test work at
Danial B. Stevens Associates has been well done. It is recommended obtaining
specific yield data using a second method such as centrifuge, nitrogen
permeation or NMR. The available RBRC data indicates an average Sy value of
5.6%. This is a significant decrease from the previously estimated value of
approximately 11%. The implications of the lower RBRC value in terms of the
overall resource estimate should be carefully evaluated".
· Several recommendations were made by Mr. Hines in his report to
improve the QA/QC protocols, data acquisition, assays, presentation and
storage. His recommendations have been considered and included in the
exploration work schedule since October 2022.
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 · CleanTech Lithium holds in Laguna Verde 2,437 hectares of
agreements or material issues with third parties such as joint ventures, Exploitation Mining Concessions that cover the entire lagoon area under an
partnerships, overriding royalties, native title interests, historical sites, Option Agreement and 4,235 hectares of Exploration Mining Concessions outside
wilderness or national park and environmental settings. the lagoon area.
· The security of the tenure held at the time of reporting along with · All prohibition certificates in favour of Atacama Salt Lakes SpA were
any known impediments to obtaining a licence to operate in the area. reviewed by the Competent Person. 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. · Exploration works has been done by Pan American Lithium and Wealth
Minerals Ltda.
Geology · Deposit type, geological setting and style of mineralisation. · Laguna Verde is a hyper saline lagoon that is classified as an
immature clastic salar. The deposit is composed of a Surface Brine Resource,
formed by the brine water volume of the surface lagoon and the Sub-Surface
Resource, formed by brine water hosted in volcano-clastic sediments that lies
beneath the lagoon
Drill hole Information · A summary of all information material to the understanding of the · The following drillhole coordinates are in WGS84 zone 19 J Datum
exploration results including a tabulation of the following information for
all Material drill holes: · LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.
o easting and northing of the drill hole collar · LV02 E553,992 N7,024,396 ELEV 4,358 m a.s.l.
o elevation or RL (Reduced Level - elevation above sea level in metres) of the · LV03 E549,980 N7,028,434 ELEV 4,402 m a.s.l.
drill hole collar
· LV04 E556,826 N7,024,390 ELEV 4,350 m a.s.l.
o dip and azimuth of the hole
· LV05 E550,972 N7,027,908 ELEV 4,335 m a.s.l.
o down hole length and interception depth
· LV06 E555,912 N7,026,004 ELEV 4,335 m a.s.l.
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.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · For the Surface Brine Resource no low-grade cut-off or high-grade
maximum and/or minimum grade truncations (eg cutting of high grades) and capping has been implemented due to the consistent nature of the brine assay
cut-off grades are usually Material and should be stated. data
· Where aggregate intercepts incorporate short lengths of high grade · For the Sub Surface Resource, a cut-off of 150 mg/l Li was applied in
results and longer lengths of low grade results, the procedure used for such the above 4,112 m Block Model for resource reporting, to cap diluted water in
aggregation should be stated and some typical examples of such aggregations the aquifer ceiling, in the salty water / brine transition area. The samples
should be shown in detail. with 150 mg/l Li in general have assayed TDS values above 100,000 mg/l,
defined as brine according the water classification table of the Complementary
· The assumptions used for any reporting of metal equivalent values Guide to CH20235 Code to Report Resources and Reserves in brine Minerals
should be clearly stated. (Comisión Minera, July 2021)
· Only one auxiliary average composite sample from deepest seven (07)
PVC Casing Bailer samples from well LV02 were used to calculate resources
(Inferred) from 4,074 m a.s.l. to the basement level at 3,955 m a.s.l. in the
LV02 drillhole near area
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The relationship between aquifer widths and intercept lengths are
Exploration Results. direct, except in LV03 were a dip of -60° should be applied
· 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').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Addressed in the report
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.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All results have been included.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Pump tests were performed in wells LV05 and LV06.
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of · A 50 hp submergible electric pump, piping with flowmeters were used
treatment; metallurgical test results; bulk density, groundwater, geotechnical for the pump tests. The tests consist in 6-hour variable pump test to verify
and rock characteristics; potential deleterious or contaminating substances. the aquifer capabilities and a constant 48-hour pump test
· In LV05 the pump was installed at 156 m and in LV06, at 150 m
Further work · The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· Upgrade Inferred Resources to Measured + Indicated and Indicated
· Diagrams clearly highlighting the areas of possible extensions, Resources to Measured Resources
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
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 · Cross-check of laboratory assay reports and Database
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes. · QA/QC as described in Section 4.7
· Data validation procedures used. · All databases were built from original data by the Competent Person
Site visits · Comment on any site visits undertaken by the Competent Person and the · A site visit was undertaken by the Competent
outcome of those visits.
Person from June 2nd to June 4th, 2021. The outcome of the visit was a general
· If no site visits have been undertaken indicate why this is the case. geological review and the lagoon water brine geochemical sampling that lead to
the July 2021 JORC Technical Report
· The January to May 2022 drilling campaign was continually supervised
by the Competent Person, that led to the September 2022 updated JORC Technical
Report
· The October 2022 to May 2023 drilling campaign was constantly
supervised by the Competent Person
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · For the Surface Brine Resource, the interpretation is direct and
interpretation of the mineral deposit. there is no uncertainty.
· Nature of the data used and of any assumptions made. · For the Sub-Surface Resource, the geological interpretation was made
based in the TEM study and gravimetry (SRK, 2011). The lithological
· The effect, if any, of alternative interpretations on Mineral interpretation was confirmed by the January - May 2023 diamond drillhole
Resource estimation. campaign.
· The use of geology in guiding and controlling Mineral Resource · Low resistivities are associated with sediments saturated in brines,
estimation. but also with very fine sediments or clays. The direct relationship of the low
resistivity layer with the above hypersaline lagoon raise the confidence that
· The factors affecting continuity both of grade and geology. the low resistivities are associated with brines.
· Drillholes confirm the geological interpretations
Dimensions · The extent and variability of the Mineral Resource expressed as · For the Surface Brine Resouce the lagoon dimensions are 14,682,408
length (along strike or otherwise), plan width, and depth below surface to the m(2) of area with depths ranging from 0 m to 7.18m with an average depth of
upper and lower limits of the Mineral Resource. 4.05 m
· The Sub-Surface Brine Resource is a horizontal lens closely
restricted to the lagoon perimeter with an area of approximately 55 km(2) and
depths for more than 300 m, from approximately 4,309 m a.s.l. to the basement
level.
Estimation and modelling techniques
· The nature and appropriateness of the estimation technique(s) applied · For the Surface Brine resource, the surface lake brine water
and key assumptions, including treatment of extreme grade values, domaining, volume is directly obtained by the bathymetry study detailed on Section 4.2.
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a · Lithium (mg/l) samples values are in general homogeneously
description of computer software and parameters used. distributed along the lagoon with a narrow value distribution. the lagoon is a
free water
· The availability of check estimates, previous estimates and/or mine
body where the ionic content is dynamic for every specific position, there is
production records and whether the Mineral Resource estimate takes appropriate no point in estimate the lake lithium content via Kriging or other
account of such data. geostatistical method. The use of the total samples average value 245.794 mg/l
was used for the Surface Brine Resource Estimation.
· The assumptions made regarding recovery of by-products.
· The Sub-Surface geological 3D model was built modifying the 50 m
· Estimation of deleterious elements or other non-grade variables of plans constructed for the September 2022 resource, considering the drillholes
economic significance (eg sulphur for acid mine drainage characterisation). interceptions, the TEM geophysics continuity from all the available
geophysical sections (in general < 4 Ohm-m zones). The constructed 3D model
· In the case of block model interpolation, the block size in relation was clipped above the brine aquifer ceiling surface, formed by the first brine
to the average sample spacing and the search employed. intercepts on the drillholes and also, below the basement surface that was
constructed using the basement intercepts on drillholes LV01 and LV02 and
· Any assumptions behind modelling of selective mining units. structural geological information. This geological 3D model corresponds to the
Sub-Surface Brine Ore Volume
· Any assumptions about correlation between variables.
· Two block models were constructed for resource calculation due
· Description of how the geological interpretation was used to control the different type of brine samples used for resource estimation, one above
the resource estimates. the 4,112 m a.s.l. and the other, below 4,112 ma.s.l.
· Discussion of basis for using or not using grade cutting or capping. · The block model above level 4,112 m a.s.l. properties are:
Block size: 200 m x 200 m x 6 m.
· The process of validation, the checking process used, the comparison
Block Model Origin: 547,000 East, 7,026,000 North, Level 4,328 m a.s.l.
of model data to drill hole data, and use of reconciliation data if available.
N° Columns: 72
N° Rows: 40
N° Levels: 36
Rotation: 20° Clockwise
· The block model below level 4,112 m a.s.l. properties are:
Block size: 200 m x 200 m x 6 m.
Block Model Origin: 547,000 East, 7,026,000 North, Level 4,112 m a.s.l.
N° Columns: 72
N° Rows: 40
N° Levels: 35
Rotation: 20° Clockwise
· On both block models the individual block variables are:
Rock Type: 0=No Ore, 1= Brine Ore
Density
Percent
Economic
Material
Li (Lithium)
Mg (Magnesium)
K (Potash)
B (Boron)
SO4
Ca (Calcium)
Category: 1=Measured, 2=Indicated and 3=Inferred
Porosity
Elevation
· The traditional Inverse to the Square Distance method to estimate
the block variables was used. To accomplish this, the samples from the
Sub-Surface Assay Resource Database were manually assigned to their
correspondent block levels on both block models. Once assigned, the block
variable values were calculated by levels with the correspondent assigned
samples and their horizontal distances from the individual block to estimate.
All calculations were performed in EXCEL files.
· The Sub-Surface Assay Resource Database was constructed according
the following considerations:
· PVC casing Bailer samples from drillholes LV01 and LV02 were used
from level 4,309 m a.s.l., down to 4,112 m a.s.l.
· Samples evidently contaminated with drilling water were extracted
from LV02 preliminary PVC Casing Bailer samples and the gaps were replaced
with the correspondent LV02 Packer sample.
· Packer samples from LV01 and LV03 drillholes plus the deepest
seven (07) PVC Casing Bailer samples from well LV02 and, a final auxiliary
average composite sample from the seven before mentioned samples were used to
calculate resources below level 4,112 m a.s.l. to the basement level at 3,955
m a.s.l.
· The validation process was mainly visual check in plans along
block model levels and, on the estimation EXCEL files
· For both block models, the blocks inside the Sub-Surface Brine
Ore Volume have variable Rock Type = 1 (Brine Ore). Only blocks with Rock Type
= 1 were reported as resource
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Not applicable for brine resources
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · A cut-off of 150 mg/l Li was used to report resources in the Above
applied. 4,112 m block model, mainly to discount blocks estimated with low grade
samples located in the fresh water / brine transition zone
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Mining will be undertaken by pumping brine from production wells and
dimensions and internal (or, if applicable, external) mining dilution. It is re-injection
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · Pump tests were performed in wells LV05 and LV06
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this · A 50 hp submergible electric pump, piping with flowmeters were
should be reported with an explanation of the basis of the mining assumptions used for the pump tests. The tests consist in 6-hour variable pump test to
made. verify the aquifer capabilities and a constant 48-hour pump test
· In LV05 the pump was installed at 156 m and in LV06, at 150
m
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · The metallurgical capacity of lithium recovery in the process has
amenability. It is always necessary as part of the process of determining been estimated at 85.2% to obtain lithium carbonate in battery grade.
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment · The process of obtaining lithium carbonate considers the
processes and parameters made when reporting Mineral Resources may not always following stages:
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made. o The Lithium is obtained using selective adsorption of lithium-ion from
Laguna Verde brine through the Direct Lithium Extraction (DLE) process. This
stage has 90.4% recovery of Lithium.
o The spent solution (without Lithium) will be reinjected into the Laguna
Verde salt flat.
o The DLE process allows impurity removal waste to be minimal.
o The diluted lithium solution recovered from the DLE process is
concentrated utilizing water removal in reverse osmosis. The removed water is
recovered and returned to the process to minimize the water consumption
required.
o Ion exchange stages remove minor impurities such as magnesium, calcium,
and boron to obtain a clean lithium solution.
o Lithium carbonate is obtained with a saturated soda ash solution to
precipitate it in the carbonation stage. Lithium recovery from this stage is
87.2%.
o The lithium carbonate obtained is washed with ultra-pure water to get it
in battery grade with the minimum of impurities.
o From the carbonation process, a remaining solution (mother liquor) is
obtained, which is treated to concentration utilizing evaporators to
recirculate in the carbonation process and ensure the greatest possible
recovery of Lithium. The removed water is recovered and reintegrated into the
process.
o The water recovery in the process is 74% which reduces the water
consumption required.
· The Direct Extraction process has been tested by Beyond Lthium
LLC at its facilities in the city of Salta, Argentina. The stages of removal
of impurities and carbonation have been tested, obtaining a representative
sample. The sample was analyzed in Germany by the laboratory Dorfner Anzaplan
showing 99.9% Li2CO3 and reduced contaminants.
· The process has been modeled Ad infinitum using the SysCAD
simulation platform and the AQSOL thermodynamic property package. With the
model, simulations of the process were made to obtain the appropriate mass
balances with which the process stages and the recovery of Lithium are
described for obtaining 20,000 tons of Li2CO3 per year.
· Metallurgical testing and process is described and detailed in
the CleanTech Lithium Scoping Study-Laguna Verde Project (December 2022)
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The main environmental impacts expected is the main plant
disposal options. It is always necessary as part of the process of determining installations, estimated to be located at 8 km to the south west of the lagoon
reasonable prospects for eventual economic extraction to consider the edge. In the near lagoon area, the impact is the surface disturbance
potential environmental impacts of the mining and processing operation. While associated with production wells and brine mixing ponds. These impacts are not
at this stage the determination of potential environmental impacts, expected to prevent project development
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.
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. · Undisturbed diamond drillhole core samples with 3 to 5-inch length in
both PQ and HQ diameter were obtained every 10 m from all drillholes for
· The bulk density for bulk material must have been measured by methods porosity testing. Samples were prepared and sent to Daniel B. Stephens &
that adequately account for void spaces (vugs, porosity, etc), moisture and Associated, Inc. laboratory (DBS&A) in New Mexico, USA. Samples underwent
differences between rock and alteration zones within the deposit. Relative Brine Release Capacity laboratory tests, which predict the volume of
solution that can be readily extracted from an unstressed geological sample.
· Discuss assumptions for bulk density estimates used in the evaluation This method by itself is insufficient for calculating an effective porosity
process of the different materials. (specific yield) value for resource estimation as the laboratory test is
performed on an unstressed core sample and doesn´t account for the host
lithology geotechnical condition. To attain a more realistic specific yield
value, the rock quality designator ("RQD") logged during the drilling was used
with a regression analysis. This provided specific yield values that are
consistent with the basin lithology.
Classification · The basis for the classification of the Mineral Resources into · For the Surface Brine Resource, the data is considered sufficient to
varying confidence categories. assign a Measured Resource classification
· Whether appropriate account has been taken of all relevant factors · For the Sub-Surface Resources classification, the considered
(ie relative confidence in tonnage/grade estimations, reliability of input criteria were based on the recommended sampling grid distances of the
data, confidence in continuity of geology and metal values, quality, quantity complementary guide to CH 20235 code to report resources and reserves in brine
and distribution of the data). deposits from the Comision Calificadora en Competencias en Recursos y Reservas
Mineras, Chile.
· Whether the result appropriately reflects the Competent Person's view
of the deposit. · Besides that, the Sub-Surface Resources categorization is
dependent of the brine samples availability and their quality in terms of
confidence. Considering the above, the Sub-Surface resources categorization
conditions are:
· For the Above 4,112 m a.s.l. block model.
Blocks estimated at 1,250 m around LV01 PVC Casing Bailer samples were
considered as MEASURED
Blocks estimated between 1,250 m to 3,000 m around LV01 PVC Casing Bailer
samples were considered as INDICATED
Blocks estimated at 3,000 m around the LV02 PVC Bailer samples were considered
as INDICATED
The rest of the blocks that don't match the above conditions were considered
as INFERRED
· For the Below 4,112 m a.s.l. block model.
Blocks estimated at 3,000 m around LV01 and LV03 Packer samples were
considered as INDICATED
Blocks estimated at 3,000 m around the available LV02 PVC Bailer samples
(discounting the AVERAGE auxiliary sample) were considered as INDICATED.
The rest of the blocks that don't match the above conditions were considered
as INFERRED
· The result reflects the view of the Competent Person
Audits or reviews · The results of any audits or reviews of Mineral Resource estimats. · The July 2021 JORC technical report were reviewed by Michael
Rosko, MS PG SME Registered Member #4064687 from MONTGOMERY & ASSOCIATES
CONSULTORES LIMITADA
· In the report he concludes that "The bulk of the information for
the Laguna Verde exploration work and resulting initial lithium resource
estimate was summarized Feddersen (2021). Overall, the CP agrees that
industry-standard methods were used, and that the initial lithium resource
estimate is reasonable based on the information available".
· The September 2022 JORC Report LAGUNA VERDE UPDATED RESOURCE
ESTIMATION REPORT, data acquisition and QA/QC protocols were audited on
October, 2022 by Don Hains, P. Geo. from Hains Engineering Company Limited (D.
Hains October 2022 QA/QC Procedures, Review, Site Visit Report).
· In the report he concludes that "The overall QA/QC procedures
employed by CleanTech are well documented and the exploration data collected
and analysed in a comprehensive manner. There are no significant short comings
in the overall programme.
· Respect the exploration program his comments are "The overall
exploration program has been well designed and well executed. Field work
appears to have been well managed, with excellent data collection. The drill
pads have been restored to a very high standard. The TEM geophysical work has
been useful in defining the extensional limits of the salar at Laguna Verde".
· Respect the Specific Yield his comments are "RBRC test work at
Danial B. Stevens Associates has been well done. It is recommended obtaining
specific yield data using a second method such as centrifuge, nitrogen
permeation or NMR. The available RBRC data indicates an average Sy value of
5.6%. This is a significant decrease from the previously estimated value of
approximately 11%. The implications of the lower RBRC value in terms of the
overall resource estimate should be carefully evaluated".
· Several recommendations were made by Mr. Hines in his report to
improve the QA/QC protocols, data acquisition, assays, presentation and
storage. His recommendations have been considered and included in the
exploration work schedule since October 2022.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The estimated tonnage represents the in-situ brine with no recovery
level in the Mineral Resource estimate using an approach or procedure deemed factor applied. It will not be possible to extract all of the contained brine
appropriate by the Competent Person. For example, the application of by pumping from production wells. The amount which can be extracted depends on
statistical or geostatistical procedures to quantify the relative accuracy of many factors including the permeability of the sediments, the drainable
the resource within stated confidence limits, or, if such an approach is not porosity, and the recharge dynamics of the aquifers.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · No production data are available for comparison
· 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.
FRANCISCO BASIN
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 · After the FB01 well casing with 8-inch PVC and silica gravel, a
specific specialised industry standard measurement tools appropriate to the development process took place. The well development includes an injection of
minerals under investigation, such as down hole gamma sondes, or handheld XRF a hypochlorite solution to break the drilling additives, enough solution
instruments, etc). These examples should not be taken as limiting the broad actuation waiting time and then, purging of minimum three well volumes
meaning of sampling. operation to clean the cased well from drilling mud and injected fresh water.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · The developing process was made using a small rig, a
high-pressure compressor and 2-inch threaded PVC that can be coupled to reach
· Aspects of the determination of mineralisation that are Material to any depth. The purging/cleaning operation is made from top to bottom,
the Public Report. injecting air with a hose inside the 2-inch PVC and "suctioning" the water,
emulating a Reverse Circulation (Air-Lift) system.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m · Once the well is verified, clan assuring that the purged water is
samples from which 3 kg was pulverised to produce a 30 g charge for fire brine coming from the aquifer, the PVC Casing Suction (Air-Lift) samples were
assay'). In other cases more explanation may be required, such as where there taken from bottom to top, while the 2-inch PVC is extracted from the well. A
is coarse gold that has inherent sampling problems. Unusual commodities or 20-liter bucket is filled with brine and the brine sample is obtained from the
mineralisation types (eg submarine nodules) may warrant disclosure of detailed bucket once the remaining fine sediments that could appear in the sample
information. decant.
· One-litre 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 · Reverse flooded drilling system with 20 to 14 inch diameter was used
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or in well FB01, FB02, FB03 (FB03A) and FB04.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc).
· FB01 was cased and habilitated from 0 m to its final depth 335 m with
8-inch PVC. FB02 was cased and habilitated from 0 m to its final depth 351 m
with 4-inch PVC.
· FB03 (FB03A), FB04 are in casing-habilitation process
· Diamond Drilling system with PQ3 and HQ3 diameters were used in FB05
and FB06
· FB05 is on casing - habilitation process with 2 inch PVC and inert
gravel
· FB06 is on drilling process
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · On Reverse Flooded Drilling system, cuttings and 10 kg sample bags
results assessed. were recovered for geological logging and tests purposes. Direct supervision
and continue geological logging were applied to assure recovery
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · On Diamond Drilling system, diamond core recovery was assured by
direct supervision and continuous geotechnical logging
· 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.
Logging · Whether core and chip samples have been geologically and · Continue geological logging took place during drilling
geotechnically logged to a level of detail to support appropriate Mineral
Resource estimation, mining studies and metallurgical studies. · For all 2022 brine samples conductivity-based TDS and Temperature °C
parameters were measured during the sampling
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · From 2023, for all brine samples conductivity-based TDS, pH and
Temperature °C parameters were measured during the sampling
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · During the brine samples batch preparation process, Standard
taken. (internal standard composed by known stable brine), Duplicates and Blank
samples (distilled water) were randomly included in the batch in the rate of
· If non-core, whether riffled, tube sampled, rotary split, etc and one every twenty original samples.
whether sampled wet or dry.
· After check samples insertion, all samples were re-numbered
· For all sample types, the nature, quality and appropriateness of the before submitted to laboratory. The author personally supervised the
sample preparation technique. laboratory batch preparation process.
· 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.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Brine samples obtained on 2022 were assayed on ALS Life Science
laboratory procedures used and whether the technique is considered partial or Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described
total. on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · From year 2023 all brine samples were assayed also on ALS Life
the parameters used in determining the analysis including instrument make and Science Chile laboratory by ICP-OES, method described on QWI-IO-ICP-OES- 01
model, reading times, calibrations factors applied and their derivation, etc. Edisión A, Modification 0 EPA 3005A; EPA 200.2, but now reporting the full
element swift
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of · Total Density use the method described on THOMPSON Y, TROEH DE.
accuracy (ie lack of bias) and precision have been established. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición.
Págs.75-85.
· Chlorine determination 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 Dissolved 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 · The assay data was verified by the author against the assay
or alternative company personnel. certificate.
· The use of twinned holes. · Geophysics were used as delivered by Terra Pacific
· Documentation of primary data, data entry procedures, data · Geological logs were managed by geology contractor GEOMIN and checked
verification, data storage (physical and electronic) protocols. by the competent person
· Discuss any adjustment to assay data. · 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 · Drillhole collars were captured with non-differential hand held GPS.
and down-hole surveys), trenches, mine workings and other locations used in Position was verified by topographic features Total station topographic
Mineral Resource estimation. capture of the drillhole collars is pending
· Specification of the grid system used. · The TEM geophysical survey coordinates were captured with
non-differential hand held GPS.
· Quality and adequacy of topographic control.
· The coordinate system is UTM, Datum WGS84 Zone 19J
Data spacing and distribution · Data spacing for reporting of Exploration Results. · PVC Casing Suction brine samples were taken every 3 m and, sent to
laboratory every 6 m
· 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.
· PVC Casing Bailer brine samples were taken every 6 m
· Whether sample compositing has been applied.
· 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, where laboratory samples were
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 · CleanTech Lithium holds in Francisco Basin 12,579 hectares of Mining
agreements or material issues with third parties such as joint ventures, Concessions, separated in 6,479 hectares of Exploitation Concessions and 6,100
partnerships, overriding royalties, native title interests, historical sites, of Exploration Mining Concessions.
wilderness or national park and environmental settings.
· The Competent Person relies in the Mining Expert Surveyor Mr, Juan
· The security of the tenure held at the time of reporting along with Bedmar.
any known impediments to obtaining a licence to operate in the area.
· 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 is 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 · The following drillhole coordinates are in WGS84 zone 19 J Datum
exploration results including a tabulation of the following information for
all Material drill holes: · FB01 E479,907 N6,959,310 ELEV 4,151 m a.s.l.
o easting and northing of the drill hole collar · FB02 E483,350 N6,957,900 ELEV 4,164 m a.s.l.
o elevation or RL (Reduced Level - elevation above sea level in metres) of the · FB03 E483,949 N6,959,090 ELEV 4,161 m a.s.l.
drill hole collar
· FB03A E483,835 N6,959,040 ELEV 4,160 m a.s.l.
o dip and azimuth of the hole
· FB04 E482,715 N6,956,410 ELEV 4,177 m a.s.l.
o down hole length and interception depth
· FB05 E482,000 N6,957,900 ELEV 4,159 m a.s.l.
o hole length.
· FB06 E485,600 N6,957,900 ELEV 4,181 m a.s.l.
· 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.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No low-grade cut-off or high-grade capping has been implemented due
maximum and/or minimum grade truncations (eg cutting of high grades) and to the consistent nature of the brine assay data
cut-off grades are usually Material and should be stated.
· No data aggregate of any kind has been implemented
· 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.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The relationship between aquifer widths and intercept lengths are
Exploration Results. direct
· 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').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Addressed in the report
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.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All results have been included.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Pump Test on FB01 well just finished
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of · A 50 hp submergible electric pump, piping with flowmeters were used
treatment; metallurgical test results; bulk density, groundwater, geotechnical for the pump tests. The tests consist in 6-hour variable pump test to verify
and rock characteristics; potential deleterious or contaminating substances. the aquifer capabilities and a constant 12-hour pump test
· In FB01 the pump was installed at 159 m
Further work · The nature and scale of planned further work (eg tests for lateral · Drilling to be undertaken upgrade Inferred Resources to Measured +
extensions or depth extensions or large-scale step-out drilling). Indicated and Indicated Resources to Measured Resources
· Diagrams clearly highlighting the areas of possible extensions, · Hydraulic testing be undertaken, for instance pumping tests from
including the main geological interpretations and future drilling areas, wells to determine, aquifer properties, expected production rates, upgrade
provided this information is not commercially sensitive. Resources to Reserves and infrastructure design. Pump Test on FB01 just
finished and on FB04 is pending
· 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. SGA Hydrogeologist consultants are actually working
on basins steady still model
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 · Cross-check of laboratory assay reports and Database
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes. · QA/QC as described in Sampling Section
· Data validation procedures used.
Site visits · Comment on any site visits undertaken by the Competent Person and the
outcome of those visits.
· Continue supervision of March to May 2022 drilling campaign.
· If no site visits have been undertaken indicate why this is the case.
· Continue supervision on October 2022 to May 2023 drilling campaign
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological
interpretation of the mineral deposit.
· For the geological interpretation was made based in the TEM study and
· Nature of the data used and of any assumptions made. drillholes FB01 and FB02
· The effect, if any, of alternative interpretations on Mineral · Low resistivities are associated with sediments saturated in brines,
Resource estimation. but also with very fine sediments or clays
· The use of geology in guiding and controlling Mineral Resource · Drillholes confirm the geological interpretations
estimation.
· The factors affecting continuity both of grade and geology.
Dimensions · The extent and variability of the Mineral Resource expressed as · The Brine Resource is a horizontal lens with an area of 12.56 km2
length (along strike or otherwise), plan width, and depth below surface to the (2.5 km radius around FB01) and 212 m wide
upper and lower limits of the Mineral Resource.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · Lithium (mg/l) PVC Casing Suction samples values are in general
and key assumptions, including treatment of extreme grade values, domaining, homogeneously distributed along the FB01 drillhole, there is no point in
interpolation parameters and maximum distance of extrapolation from data estimate the lithium content via Kriging or other geostatistical method given
points. If a computer assisted estimation method was chosen include a that there is only one drillhole. The use of the samples values average 305.04
description of computer software and parameters used. mg/l Li was be used for the Brine Resource Estimation.
· The availability of check estimates, previous estimates and/or mine · The geological units in the basin filling correspond to variable
production records and whether the Mineral Resource estimate takes appropriate proportions of gravels, sands and clays These units have a moderately to very
account of such data. high porosity so, a conservative specific yield of 12.2% was estimated,
depending on the logged proportions of its content
· 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.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Not applicable for brine resources
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · No cut-off parameters were used
applied.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Mining will be undertaken by pumping brine from production wells and
dimensions and internal (or, if applicable, external) mining dilution. It is re-injection
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · Pump Test on FB01 well just finished
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this · A 50 hp submergible electric pump, piping with flowmeters were used
should be reported with an explanation of the basis of the mining assumptions for the pump tests. The tests consist in 6-hour variable pump test to verify
made. the aquifer capabilities and a constant 12-hour pump test
· In FB01 the pump was installed at 159 m
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Direct Lithium Extraction technology (DLE) with spent brine
amenability. It is always necessary as part of the process of determining reinjection is planned for Francisco Basin. Production Plant / Camp,
reasonable prospects for eventual economic extraction to consider potential production/reinjection wells, and brine mixing ponds are planned to install on
metallurgical methods, but the assumptions regarding metallurgical treatment the concession area.
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.
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The main environmental impacts expected is the Production Plant /
disposal options. It is always necessary as part of the process of determining Camp and the surface disturbance associated with production wells and brine
reasonable prospects for eventual economic extraction to consider the mixing ponds. These impacts are not expected to prevent project
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.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Bulk density is not relevant to brine resource estimation.
assumptions. If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the samples. · For porosity a conservative specific yield of 12.2% was estimated,
depending on the logged proportions of the sediments content
· 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.
Classification · The basis for the classification of the Mineral Resources into · For the brine Resource, the data and assumptions are only considered
varying confidence categories. sufficient to assign an Inferred Resource classification
· Whether appropriate account has been taken of all relevant factors · The result reflects the view of the Competent Person
(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.
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 · The estimated tonnage represents the in-situ brine with no recovery
level in the Mineral Resource estimate using an approach or procedure deemed factor applied. It will not be possible to extract all of the contained brine
appropriate by the Competent Person. For example, the application of by pumping from production wells. The amount which can be extracted depends on
statistical or geostatistical procedures to quantify the relative accuracy of many factors including the permeability of the sediments, the drainable
the resource within stated confidence limits, or, if such an approach is not porosity, and the recharge dynamics of the aquifers.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · No production data is available for comparison
· 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.
LLAMARA
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 · Sub surface brine samples were obtained with Packer sampling, using a
specific specialised industry standard measurement tools appropriate to the packer bit tool provided by the drilling company (Big Bear).
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Once the sampling support was sealed, a purging operation took place
meaning of sampling. until no drilling mud was detected
· Include reference to measures taken to ensure sample representivity · After the purging operation, half an hour waiting took place to let
and the appropriate calibration of any measurement tools or systems used. brine enter to the drilling rods thru the slots in the packer tool before
sampling with double valve bailer.
· Aspects of the determination of mineralisation that are Material to
the Public Report. · Successive one-liter samples with half an hour separation were taken
with a steel made double valve bailer. Conductivity-based TDS was measured in
· In cases where 'industry standard' work has been done this would be every sample with a Hanna Multiparameter model HI98192. The last two samples
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m that measure stable similar TDS values were considered as non-contaminated and
samples from which 3 kg was pulverised to produce a 30 g charge for fire identified as the Original and Reject samples.
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · On drillhole LL01 the purging / sampling operation was in process at
mineralisation types (eg submarine nodules) may warrant disclosure of detailed 290 m when the natural gas upwelling took place. Only two consecutive samples
information. were possible to obtain, which are contaminated with drilling mud
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · On well LL01 diamond drilling with PQ3 diameter were used up to 197.7
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or m depth. Below that depth the drilling diameter was reduced to HQ3 to its
standard tube, depth of diamond tails, face-sampling bit or other type, final depth at 292 m
whether core is oriented and if so, by what method, etc).
· LL01 well was sealed with cement as a safety measure
· On well LL02 diamond drilling with PQ3 diameter is been using to its
up to date depth
· In both diameters, a triple tube was used for the core recovery.
· Packer bit provided by Big Bear was used to obtain brine samples
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Diamond Core recovery were assured by direct supervision and
results assessed. continuous geotechnical logging provided by Roko Hydrogeología y Geología
Aplicada (Roko) contractor
· 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.
Logging · Whether core and chip samples have been geologically and · Continue geological and geotechnical logging took place during
geotechnically logged to a level of detail to support appropriate Mineral drilling
Resource estimation, mining studies and metallurgical studies.
· For brine packer samples conductivity-based TDS Temperature °C and
· Whether logging is qualitative or quantitative in nature. Core (or pH parameters were measured during the sampling
costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Only two contaminated samples were obtained from LL01, no check
taken. samples have been inserted
· If non-core, whether riffled, tube sampled, rotary split, etc and · All materials were flushed with distilled water and then, set
whether sampled wet or dry. them by flushing with 100 cc of sampled water
· 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.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · The samples were assayed on ALS Life Science Chile laboratory by
laboratory procedures used and whether the technique is considered partial or ICP-OES method, described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA
total. 3005A; EPA 200.2 reporting the full element suite
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · Total Density use the method described on THOMPSON Y, TROEH DE.
the parameters used in determining the analysis including instrument make and Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición.
model, reading times, calibrations factors applied and their derivation, etc. Págs.75-85.
· Nature of quality control procedures adopted (eg standards, blanks, · Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1
duplicates, external laboratory checks) and whether acceptable levels of Método basado en Standard Methods for the Examination of Water and
accuracy (ie lack of bias) and precision have been established. 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
· As only two contaminated samples were obtained from LL01, no
check samples have been inserted
Verification of sampling and assaying · The verification of significant intersections by either independent · The assay data was verified by the author against the assay
or alternative company personnel. certificate.
· The use of twinned holes. · Brine samples batch were prepared by Roko personnel with the direct
supervision by the competent person. All data are in EXCEL files
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Drillhole collars were captured with non-differential hand held GPS.
and down-hole surveys), trenches, mine workings and other locations used in Total station topographic capture of the drillhole collars is pending
Mineral Resource estimation.
· The coordinate system is UTM, Datum WGS84 Zone 19K
· Specification of the grid system used.
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Only one support has been sampled on LL01
· Whether the data spacing and distribution is sufficient to establish · LL02 is on sampling process. The sampling spacing is one sample every
the degree of geological and grade continuity appropriate for the Mineral 27 m and also, sampling on relevant geological features
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The data is vertical along the drillholes, intercepting horizontal
possible structures and the extent to which this is known, considering the sedimentary brine aquifers
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 keep on site before transporting
them to Antofagasta city and sent, vía Chilexpress currier to ALS laboratory
· 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 auditory has been made on Llamara
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 · CleanTech Lithium holds in Llamara 55,000 hectares of Exploration
agreements or material issues with third parties such as joint ventures, Mining Concessions (Pedimentos Constituidos) thru its Chilean subsidiary
partnerships, overriding royalties, native title interests, historical sites, company CLS Chile SpA
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. · 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. · Exploration works has been done by several companies, including
resources on hard Lithium ore located on surface clays and salt flats
· No brine Lithium exploration has been reported by other parties
Geology · Deposit type, geological setting and style of mineralisation. · The exploration target is a Brine Lithium Mineral deposit
· Llamara is an ancient basin that receive all deep ground water coming
from the East.
The ground water and their physical and chemical elements are entrapped in the
basin as the Coastal Cordillera, located to the West acts like a dam
· Brine is expected in underground ancient sedimentary units
(sandstones and conglomerates)
· A secondary target is the hard Lithium ore, founded on Lithium rich
clays ¨Hectorite", located on or near surface
Drill hole Information · A summary of all information material to the understanding of the · The following drillhole coordinates are in WGS84 zone 19 K Datum
exploration results including a tabulation of the following information for
all Material drill holes: · LL01 E466,999 N7,616,999 ELEV 1,133 m a.s.l.
Azimuth 0° Dip -90°
o easting and northing of the drill hole collar
Length: 292 m
o elevation or RL (Reduced Level - elevation above sea level in metres) of the · LL02 E461,042 N7,617,689 ELEV 1,065 m a.s.l.
drill hole collar
Azimuth 0° Dip-90°
Length: On drilling process
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.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No low-grade cut-off or high-grade capping has been implemented
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. · No intercepts aggregation has been implemented in Llamara
· 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.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The relationship between aquifer widths and intercept lengths are
Exploration Results. direct
· 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').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Addressed in the report
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.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All results have been included.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be · No other substantive exploration data has been included
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.
Further work · The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· Design a drilling campaign with 2.5 km drillhole separation to
· Diagrams clearly highlighting the areas of possible extensions, estimate Measured & Indicated Resources on the Brine Lithium deposit,
including the main geological interpretations and future drilling areas, according the recommended spacing for immature salt flats from the
provided this information is not commercially sensitive. Complementary Guide to CH20235 Code to Report Resources and Reserves in brine
Minerals (Comisión Minera, July 2021)
· Collect 10 cm core samples from drillholes LL01 and LL02, to be sent
to laboratory for Brine Release Capacity tests and estimate the Specific Yield
of the brine ore host units
· Identify and send to laboratory near surface core samples from
drillholes LL01 and LL02, to assay and study the Hard Lithium ore potential
· Design and complete a surface geochemical campaign on selected
company exploration mining concessions to study the Hard Lithium ore potential
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 · Not applicable for Exploration results
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes. · The assay data was verified by the Competent Person against the assay
certificate
· Data validation procedures used.
Site visits · Comment on any site visits undertaken by the Competent Person and the · From January 25 to January 27, 2023. Locate LL01 drillhole position,
outcome of those visits. access and logistics
· If no site visits have been undertaken indicate why this is the case. · From April 05 to April 07, 2023. Confirm LL01 location with Big Bear
supervisor. Assure general logistics
· From April 20 to April 25, 2023. LL01 Drilling start-up supervision.
Roko personnel brine sampling, geological and geotechnical logging procedures
training
· From May 11 to May 16, 2023. LL01 brine samples batch preparation
supervision. Natural gas surge standby check and investors visit
· From May 24 to May 25, 2023 LL01 closure supervision. LL02 drillhole
positioning
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · Not applicable for Exploration results
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.
Dimensions · The extent and variability of the Mineral Resource expressed as · Not applicable for Exploration results
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource.
Estimation and modelling techniques
· Not applicable for Exploration results
· 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.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Not applicable for brine deposits
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Not applicable for Exploration results
applied.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Not applicable for Exploration results
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.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Not applicable for Exploration results
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.
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The main environmental impacts expected is the main plant
disposal options. It is always necessary as part of the process of determining installations and the surface disturbance associated with production wells and
reasonable prospects for eventual economic extraction to consider the brine mixing ponds. These impacts are not expected to prevent project
potential environmental impacts of the mining and processing operation. While development
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the · No official protected areas are located on or near the exploration
status of early consideration of these potential environmental impacts should mining concessions area
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Not applicable for Exploration results
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.
Classification · The basis for the classification of the Mineral Resources into · Not applicable for Exploration results
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.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimats. · Not audits or reviews has been performed in Llamara
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · Not applicable for Exploration results
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.
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