REG - CleanTech Lithium - Laguna Verde Project PFS Update

Cleantech LithiumAnnouncement

29/02/2024 07:00

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RNS Number : 8613E  CleanTech Lithium PLC  29 February 2024

29 February 2024

 

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

Laguna Verde Project PFS Update

 

CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF, Frankfurt:T2N), an exploration
and development company advancing lithium projects in Chile, announces that it
now expects to publish the Pre-Feasibility Study (the "PFS") for the Laguna
Verde Project in Q3 2024. In order to produce a more robust PFS, which will
further support strategic partner discussions, the Board has decided to
include data from the Company's DLE pilot plant as well as from the current
drilling and field programme at Laguna Verde.

 

Highlights:

·    The Company aims to complete a PFS that will define the best
configuration of the Laguna Verde Project to take forward into a Definitive
Feasibility Study (DFS).

·     The current drilling programme at Laguna Verde is designed to
produce the first JORC compliant reserve estimate for the project, which is an
essential component to the PFS in accordance with recognised standards

·    The drilling programme will also produce a hydrogeological model to
design the extraction and reinjection wells to maximise the recovery of the
lithium resource.

·     Data from the optimisation of process parameters for the
Company´s DLE pilot plant will provide important input for the PFS.

·     Incorporating the results of the current field programme and pilot
plant process data will produce a highly robust PFS in the Board's view,
therefore the PFS is now targeted for completion in Q3 2024.

·    The PFS is being led by Worley, an international engineering services
company, from its Santiago office which has considerable experience of
undertaking feasibility studies for and executing lithium projects in Chile.

·     The Company has engaged various consultants to deliver more
detailed studies addressing port access, water supply, power access and
lithium market studies, which also form part of the PFS.

·     Completion of the PFS, along with process and product verification,
are key steps in 2024 to engage with high quality strategic investors for
offtake and project funding.

 

Aldo Boitano, Chief Executive Officer, of CleanTech Lithium PLC, commented:
"The Pre-Feasibility Study (PFS) for the Laguna Verde project will be a
significant milestone on our path to lithium production. It is the Company's
aim to produce the highest quality PFS to ensure the strongest possible
platform for discussions with strategic partners. The addition of data from
the Company's DLE pilot plant will help achieve that aim."

 

Further Information

 

Following the completion of a positive scoping study on the Laguna Verde
project in Q1 2023, the Company engaged Worley to lead a PFS, a systematic
assessment of all critical elements of the project and the various options for
the project configuration. Worley is an international engineering services
company with extensive experience in resource project feasibility studies, and
its Chile office has a high level of lithium sector expertise. Other
consultants which specialise in key aspects of the study such as port access,
water supply, power access and lithium market studies are supporting Worley.

 

A resource evaluation programme at the project is ongoing, which aims to
produce a JORC compliant reserve estimate scheduled for early Q3 2024. The
existing resource of 1.8 million tonnes of lithium carbonate equivalent (LCE)
in the Measured, Indicated and Inferred categories is based on six wells
completed in 2022 and 2023. A further five wells are planned to be completed
in the first half of 2024, as shown in figure 1. The drilling programme, which
will include completion of pumping and reinjection tests, is being managed by
Montgomery and Associates, a leading hydrogeology consultant with extensive
experience working on lithium brine aquifers in Chile and Argentina.

 

The increased drilling density and the completion of pump tests on wells LV05
and LV06, along with a reinjection test, is expected to provide sufficient
data to produce an estimate of reserves. The drilling programme will also
enable a robust hydrogeological model to be completed, which will be used to
design the extraction and reinjection wellfields to maximise recovery of the
lithium resource. The importance of having control of the basin cannot be
underestimated, as this allows the Company to manage the aquifer without
interference from third parties. The reserve estimate and wellfield design is
required to plan the life of mine production output in the PFS.

 

Figure 1: Drill Plan Map Showing Previous and Planned Well Locations at Laguna
Verde

 

An important aspect of the PFS is to utilise data that will be generated from
the Company´s DLE pilot plant in 1H 2024. The pilot plant, with a capacity of
1 tonne/month LCE in eluate, is of sufficient scale to allow data from the
process optimisation to be used within the design for a full scale production
plant. Operating the pilot plant and producing a high quality lithium chloride
eluate over a sufficiently high number of cycles should verify the DLE
process. The eluate from the DLE pilot plant will then be converted to battery
grade lithium carbonate at an existing third party facility in North America.
This programme will provide product samples for potential strategic and
offtake partners for testing and to start their product qualification process.

 

The battery market is rapidly evolving with different battery types requiring
different lithium products. The PFS will also evaluate the expected growth
rates for these different lithium products and determine which products are to
be produced by the Laguna Verde project.

 

Based on the additional studies and work programmes that are being undertaken
to support the PFS, completion is now targeted for Q3 2024. Completion of the
PFS, along with process and product verification, are the key steps the
Company aims to complete in 2024 which will provide the strongest basis for
engaging high-quality strategic investors for product offtake and project
funding agreements.

 

 

**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                        +569 95348744

 Ernesto Escobar                               Ernesto@publicoporternovelli.cl

 Beaumont Cornish Limited                      +44 (0) 207 628 3396

 (Nominated Adviser)

 Roland Cornish/Asia Szusciak

 Canaccord Genuity (Joint Broker)              +44 (0) 207 523 4680

 James Asensio

 Fox-Davies Capital Limited (Joint Broker)     +44 20 3884 8450
 Daniel Fox-Davies                             daniel@fox-davies.com (mailto:daniel@fox-davies.com)

 

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Notes

CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and
development company advancing sustainable lithium projects in Chile for the
clean energy transition. Committed to net-zero, CleanTech Lithium's mission is
to produce material quantities of battery grade using sustainable Direct
Lithium Extraction technology, powered by renewable energy, the Company plan
to be a leading supplier of 'green' lithium to the EV and battery
manufacturing market.

CleanTech Lithium has four lithium projects - Laguna Verde, Francisco Basin,
Llamara and Salar de Atacama - located in the lithium triangle, the world's
centre for battery grade lithium production. The two major projects: Laguna
Verde and Francisco Basin are situated within basins controlled by the
Company, which affords significant potential development and operational
advantages. All four projects have direct access to existing 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 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. www.ctlithium.com
(http://www.ctlithium.com/)

 

 

 

**ENDS**

 

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