REG - CleanTech Lithium - Laguna Verde Resource Update
20/01/2025 07:00
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RNS Number : 9162T CleanTech Lithium PLC 20 January 2025
20 January 2025
CleanTech Lithium PLC ("CTL", CleanTech Lithium" or the "Company")
Laguna Verde Resource Update
CleanTech Lithium PLC ("CleanTech Lithium" or "CleanTech" or the "Company")
(AIM: CTL, Frankfurt:T2N), an exploration and development company advancing
sustainable lithium projects in Chile, announces an updated resource estimate
for its Laguna Verde project that has been included by the Chile Government as
one of the six salar systems to be prioritised for development.
Highlights:
· The mineral resource estimate is updated from that reported in the
RNS of 17 July 2023 based on additional exploration and pumping tests
conducted in 2024
· The JORC (2012) compliant estimate was calculated by Montgomery &
Associates ("Montgomery´"), a leading hydrogeological consultant highly
experienced in lithium brine resource estimation
· The total updated resource is 1.63 million tonnes of Lithium
Carbonate Equivalent (LCE), at a grade of 175 milligrams per litre (mg/l)
lithium, of which 0.81 million tonnes is in the Measured + Indicated category
at a grade of 178 mg/l lithium
· This current resource estimate is based on the proposed polygon area
included in the Company´s recently submitted application for a Special
Operating Contract for Lithium ("CEOL")
· The previous 2023 estimate which totalled 1.77 million tonnes LCE at
an average grade of 200mg/l lithium was based on the previously proposed CEOL
area under the old application regime that was larger covering the entire
estimated resource of the basin.
· Lithium concentrations obtained in the 2024 campaign were below the
average grade of other exploration wells impacting the average lithium grade
of the resource
· Montgomery recommends three additional drillholes in the southwest,
north and northeast to potentially increase the resource based on completed
geophysics
· This updated measured and indicated resource estimate will be used in
the pre-feasibility study (PFS) which is intended to underpin a maiden reserve
estimate for the Laguna Verde project
Steve Kesler, Executive Chairman, CleanTech Lithium said: "The updated
JORC-compliant resource estimate for the Laguna Verde project, independently
determined by Montgomery & Associates, confirms a robust and significant
resource of 1.63 million tonnes of Lithium Carbonate Equivalent (LCE), with
0.81 million tonnes in the Measured and Indicated category at an average grade
of 178 mg/l lithium. Now with greater confidence in the resource, this
comprehensive evaluation will form the basis for the Pre-Feasibility Study,
scheduled for end of this quarter. This positions Laguna Verde as a highly
promising direct lithium extraction (DLE) based project in the lithium brine
sector and as a contributor to Chile's future as a leading lithium producer
for the global EV and battery market."
Further Details:
Project Background
The Laguna Verde corresponds to a lithium brine deposit which is found in the
Atacama Region of Chile, near the Chile - Argentina border. The project
consists of mining concessions located approximately 192 kilometres (km)
northeast of Copiapó. The concession area is readily accessible via a network
of paved roads from the closest major city Copiapó, following the route
(R-31) for approximately 275 km. The Laguna Verde Basin has elevations that
vary between 4,330 to 4,500 metres above sea level (masl), where the low
altitude valley area is approximately 20 km long and 4 km wide.
Figure 1: Regional Location Map and Project Area
The previous resource estimate for Laguna Verde was reported in July 2023,
based on five wells completed in 2022 and 2023. A drill programme was
undertaken in 1H 2024 which completed two infill wells in the first half of
2024 along with three observation wells drilled to support observations during
pumping tests. The location of wells completed from 2022 - 2024 are shown in
Figure 2, along with three recommended wells to potentially increase the
resource.
Figure 2: Existing and Recommended Exploration Wells at Laguna Verde
Resource Summary
Montgomery was engaged to support the 2024 field programme at Laguna Verde and
based on the information obtained to provide an updated resource estimate and
technical report for the project. The technical report has been prepared to
conform to the regulatory requirements of the JORC Code (2012). Mineral
Resources are also reported in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines (CIM, 2012).
The breakdown of the resource categories comprising the total resource
estimate and the comparison with the previous 2023 estimate is shown below in
Table 1. The previous 2023 estimate which totalled 1.77 million tonnes LCE at
an average grade of 200 mg/l Lithium was based on a proposed CEOL area that
was larger and covered the entire estimated resource of the basin, whereas the
updated 2025 estimate is based on the Company's preferential licences and
proposed polygon area included in the Company´s recently submitted
application for a CEOL. As a comparison, the current resource estimate for the
basin (on the same basis of larger CEOL area) would be 1.95 million tonnes
LCE.
Lithium concentrations obtained in the 2024 campaign were below the average
grade of other exploration wells impacting the average lithium grade. Although
slightly lower than the lithium grade used in the 2023 scoping study a grade
of 175 mg/l lithium is very suitable for the DLE process and is well above the
cut-off grade of 100 mg/l lithium.
Table 1: Updated JORC Resource Estimate 2025 Compared to 2023 Resource
Estimate
Special Operating Contract for Lithium (CEOL)
In April 2024 the Chilean government announced, as part of its National
Lithium strategy, the intention to make available to the private sector CEOLs
over 26 salt flats. As of September 2024, the Chilean government has
prioritised six salt flats for the CEOL award process, one of which is Laguna
Verde. The CEOL grants exclusive rights to exploit lithium and only one CEOL
is to be granted per saline system. The Government also published a polygon
CEOL area for each of the prioritised salt flats but clarified that this
polygon area is referential and could be modified following community dialogue
and with agreement of the applicant. The Government also announced that the
CEOL could be awarded in a streamlined procedure that allowed direct
negotiation with Government rather than through a public tender provided that
a number of criteria were met. One criteria was that the applicant must
demonstrate that it holds at least 80% of the preferential mining licences in
the CEOL polygon.
CleanTech Lithium has proposed a modification to the published CEOL polygon in
its CEOL application (shown in Figure (#_bookmark47) 3) which has been
developed to ensure that over 80% of the proposed CEOL polygon area is
preferential mining licenses held by CleanTech. The CEOL application by
CleanTech includes letters of support from indigenous communities for the
proposed modified CEOL polygon.
Figure. 3: CleanTech´s Preferential Licences and Proposed CEOL Extent
Table 2 provides a breakdown of the current Laguna Verde resource estimate by
resource category and by separating the resource attributable to the
preferential licences held by the Company, and the provisional resources in
licences held by third parties within the proposed CEOL area. The combined
resource would be attributable to the Company provided the CEOL is awarded to
CleanTech for the proposed area (Figure 3).
Mineral resources are not mineral reserves and do not have demonstrated
economic viability. Furthermore, not all mineral resources can be converted
into mineral reserves after application of the modifying factors, which
include but are not limited to mining, processing, economic, and environmental
factors.
Table 2: Mineral Resource Estimate for the Laguna Verde Project (Effective
January 3, 2025)
Resource Estimation Method
The updated resource estimate consists of Measured, Indicated and Inferred
resources. A detailed geological and resource block model was creating in
Leapfrog (Seequent, 2023) using obtained well lithologies, discrete-depth
values for brine chemistry, drainable porosity values, and geophysical
profiles. Lithium concentrations were interpolated using ordinary kriging,
specific yield was assigned to each hydrogeological unit, and the mass
calculations within the resource block model were undertaken using the
Leapfrog Edge extension. A cut-off grade of 100mg/l lithium was conservatively
applied based on the Laguna Verde scoping study capital and operating costs.
Consistent with the Houston et al. (2011) recommendations for immature salars,
a 1.25 km radius circle around the well was used to estimate a Measured
resource, a 2.5 km radius circle around the well was used to estimate an
Indicated resource, while a maximum 5 km radius circle was used as the areal
extent to estimate an Inferred resource. Depending on the confidence in the
sampling procedures and presence of volcanic outcrops, some resource polygons
were limited in extent.
Surface Rights
In Chile, Surface Access Rights should be granted or imposed on a mining
concession before the extraction starts. CleanTech Surface Access Rights
request was received by Bienes Nacionales on June 16, 2023, in the name of
Atacama Salt Lakes SpA and is currently in process. The requested area totals
11,136 hectares and covers the project scoping study planned installations (Ad
Infinitum, December, 2022). The requested area can be seen in Figure 4.
(#_bookmark49)
Figure 4. CleanTech's Requested Surface Right Area
Water Rights
There are surface water courses that contribute to the Laguna Verde. The
Peñas Blanca River flows from west to east and has a continuous flow
throughout the year, while to the east of the Laguna Verde, there are
intermittent surface water flows. Freshwater exploration wells also exist in
the western portion of the basin with demonstrated pumping rates that exceed
40 L/s (Hydro Exploraciones, 2020). Furthermore, a conceptual water balance of
the basin recharge has been prepared and indicates that the average estimated
freshwater recharge in the Laguna Verde Basin corresponds to 570 l/s (M&A,
2024a). Potential sources of freshwater for the Project include the
application for groundwater rights in the basin or the purchase of water
rights from third parties (CleanTech, 2024).
Geological Setting
The regional geology of the Project area is mainly characterised by volcanic
and sedimentary sequences. Laguna Verde is an immature clastic salar basin,
with the lagoon effectively corresponding to the evaporative "salar nucleus".
The Project consists of a lithium-rich aquifer found below the lagoon and in
the surrounding sediments. The brine is mainly hosted in volcaniclastic
sediments and tuff beneath the lagoon with a moderate hydraulic conductivity.
The Laguna Verde stratigraphy is characterised by a band of tuffs with
different grain sizes, consolidation / welding, type of clasts, and locally
interbedded volcaniclastic sediments. This unit presents an average thickness
of 400 metres and overlays the lower volcanic rock (mainly andesite)
identified in drillholes and the gravity survey, which has some fracturing and
a low drainable porosity. Furthermore, a fault zone which has highly fractured
and brecciated rock was encountered along the southern portion of Laguna
Verde. In all, the brine aquifer was characterised up to a maximum depth of
650 metres (LV07).
Figure 5 shows the locations for two NW-SE hydrogeological cross sections, and
Figure 6 shows the sections with the hydrogeological units modelled in the
Leapfrog software.
Figure 5: Hydrogeological Cross Section Locations
Figure 6: Hydrogeological Cross Sections
Exploration
CleanTech engaged Geodatos to conduct Transient ElectroMagnetic (TEM)
geophysical surveys at Laguna Verde during the periods April to May 2021 and
again in March 2022. The objective of these surveys was to determine the
electrical properties of the subsurface sediments to provide information about
the stratigraphy and water quality of the hydrogeologic units in the area. The
surveys also helped determine the water table level and helped confirm the
presence of brine.
A gravity survey was performed by Geodatos between the end of December 2022
and early January 2023. The survey campaign included TEM measurements and two
extra profiles. One hundred and eleven (111) gravity stations, arranged in
four lines surrounding the lagoon area, as well as fourteen (14) TEM stations,
arranged in two lines, were surveyed with a 400-metre separation.
Figure 7: Laguna Verde Surveyed Gravity and TEM Stations
Drilling
An initial drilling campaign was conducted in 2022 and 2023 with four diamond
drill holes (DDH) (LV01, LV02, LV03 and LV04) and two rotary wells (LV05 and
LV06) as shown in Figure 2. A second campaign was conducted in 2024, with
Montgomery personnel, where two exploration boreholes were drilled (LV07 and
LV11) with monitoring wells for subsequent pumping tests at LV05 and LV06.
Drilling at boreholes LV07 and LV11 reached a final depth of 650 metres below
land surface (mbls) and 412.8 mbls, respectively. A pumping test at LV05 was
initially conducted in the first campaign and included a pre-test and a
48-hour constant discharge test on April 8, 2023. During the 2024 campaign, a
step-discharge and a constant-discharge were conducted at LV05, but due to
adverse weather conditions, a long-term constant rate test could not be
completed. During the first campaign, a pre-test and a constant discharge test
were conducted at LV06 and a long-term (7-day) constant rate test was
conducted during the 2024 campaign.
Table 3: Location and Depth Drilled for Years 2022, 2023 and 2024 Exploration
Wells
Well Drilling Method Northing Easting Total Depth Drilled (m) Year Drilled
(m, WGS84 19S)
(m, WGS84 19S)
LV01 DDH 7,027,088 549,432 474 2021-2022
LV02 DDH 7,024,396 553,992 339 2022
LV03 DDH 7,028,434 549,980 547.5* 2022
LV04 DDH 7,024,390 556,826 311 2022
LV05 Rotary 7,027,908 550,972 434.6 2022-2023
LV06 Rotary 7,026,004 555,912 405 2023
LVM05a DDH 7,027,908 550,921 221.50 2024
LVM05b DDH 7,027,951 550,946 41.5 2024
LVM06c DDH 7,026,032 555,959 40 2024
LV07 DDH 7,025,296 552,561 650 2024
LV11 DDH 7,024,793 555,582 412.8 2024
*LV03 was drilled as an angled borehole with an azimuth of 120 degrees and dip
of 60 degrees.
Figure 8: Drilling at LV07 in 1H 2024
Brine Sampling Collection and Analysis
Various methods were used to obtain brine samples during and after the
exploration drilling program:
• Packer sampling
• Airlift sampling
• Double-valved disposable bailer sampling
• Double-valved electric bailer sampling
• Hydra-sleeve sampling
• Brine sampling during pumping tests
The brine sampling program included standard quality assurance/quality control
(QA/QC) elements such as including duplicate brine and blank samples in bine
sample batches sent to the laboratory. Formal traffic reports and chain of
custody documents were prepared for every sample obtained and submitted for
laboratory analysis. In the opinion of the Competent Person (CP), sample
preparation, security, and analytical procedures were acceptable for this
stage of the Project and results from the laboratory analyses are considered
adequate.
Drill Core Sampling and Specific Yield Estimation
During the first campaign, core samples were obtained every 10 metres from the
four drillholes and a total of 122 core samples were obtained at each
drillhole and submitted to the DBS&A Laboratory in New Mexico, USA for
Relative Brine Release Capacity (RBRC) tests. During the second campaign
(2024), 33 core samples were obtained from LV07 and LV11 and were sent to
GeoSystem Analysis (GSA) laboratory in Tucson, USA, for analysis.
Figure 9: Example of Drill Core from Exploration Borehole LV11 (132 to 136m)
Laboratory values for drainable porosity were obtained from 145 successfully
analysed core samples. Core samples underwent Relative Brine Release Capacity
(RBRC) tests. The drainable porosity (i.e., specific yield) measurement
procedure involved saturating the core sample with a brine solution and
placing them in test cells where a pressure differential was applied and the
proportion of brine which can be drained was estimated. In the opinion of the
CP, sample preparation, security, and analytical procedures were acceptable
and results from the laboratory analyses are considered adequate for resource
estimation. The 2023 resource estimate included drainable porosity
measurements which were increased by a secondary porosity term calculated from
rock quality designation logged during drilling. This current resource update
uses drainable porosity measurements from the laboratory, without
modification, which results in lower drainable porosities than used in the
2023 resource estimate.
The average drainable porosity values assigned to each hydrogeologic unit used
to estimate the lithium resource are given in Table 3. Due to its smaller
dataset, a simpler analysis was undertaken for drainable porosity to assign
representative values by hydrogeological unit; constant (average) values were
assigned to each hydrogeologic unit in the resource model, and drainable
porosity values were not interpolated.
Table 3: Assigned Drainable Porosity Values for Laguna Verde Hydrogeological
Units
Hydrogeological Unit Average Drainable Porosity* N° Samples
Unconsolidated Tuff and Coarse Tuff 6% 102
Consolidated Ash Tuff 3% 14
Brecciated and Fractured Rock 5% 9
Lower Volcanic Rock 1% 5
Upper Alluvium and Colluvium 10%** 0
Surficial Volcanic Deposits 3%*** 0
* Rounded arithmetic average
** Assumed theoretical value
*** The drainable porosity of the consolidated ash tuff unit was assumed due
to its lithological similarity. The number of blocks that correspond to the
consolidated ash tuff within the resource block model are negligible compared
to the rest of the hydrogeological units.
Recommendations
Currently, the drilling and testing of a reinjection well is planned for the
first quarter of 2025. In terms of the resource, three additional diamond
drillholes in the southwest, north, and northeast are recommended to
potentially expand the resource volume (Figure 2; LV08, LV09, and LV10) based
on the conducted geophysics. During the drilling of those three additional
diamond drillholes, depth-specific brine and drainable porosity sampling are
recommended with the corresponding QA/QC measures.
Block Model Results and Verification
Figure 10 presents the shallowest interpolated concentrations of the brine
body which were mapped to the Leapfrog block model; as can be seen, grades are
highest in the western portion of Laguna Verde, whereas the eastern portion
represents a zone of heightened recharge with diluted grades. The bottom of
the block model was limited to the deepest well (LV07), and the horizontal
extent of the block model was limited to the CleanTech concessions and
potential of the proposed CEOL area. Laboratory results for lithium
concentrations from depth specific brine and pumping test samples collected
from the wells were incorporated directly into the model. Ordinary Kriging was
used for the interpolation of lithium concentrations within the block model.
Figure 10: Shallow Lithium Concentration Distribution and Proposed CEOL
Outline
The resource block model was subsequently validated by visual inspection and
comparison of the measured and block model concentrations. Swath plots were
also utilized, which compare the average measured and interpolated values
along distinct profiles of the block model.
Competent Persons Statement
The following professionals act as competent persons, as defined in the AIM
Note for Mining, Oil and Gas Companies (June 2009) and JORC Code (2012):
Mr. Michael Rosko is a Registered Member of the Society for Mining, Metallurgy
and Exploration, member #4064687. He graduated from the University of Illinois
with a bachelor's degree in geosciences in 1983, and from the University of
Arizona with a master's degree in geosciences in 1986. Mr. Rosko is a
registered professional geologist in the states of Arizona (#25065),
California (#5236), and Texas (#6359). Mr. Rosko has practiced his profession
for 38 years and has been directly involved in design of numerous exploration
and production well programs in salar basins in support of lithium
exploration, and estimation of the lithium resources and reserves for many
other lithium projects in Argentina and Chile.
Mr. Brandon Schneider is employed as a Senior Hydrogeologist at M&A. He
graduated from California Lutheran University in 2011 with a Bachelor of
Science degree in Geology (with Honors) and obtained a Master of Science in
Geological Sciences (Hydrogeology focus) from the University of Notre Dame in
2013. He is a professional in the discipline of Hydrogeology and a Registered
Professional Geologist in Arizona (#61267) and SME Registered Member
(#4306449). He has practiced his profession continuously since 2013. His
relevant experience includes: (i) from 2013 to 2016, consulting hydrogeologist
specializing in hydrogeological characterizations, aquifer test analyses,
groundwater modeling, and pumping well optimization for mining projects and
sedimentary basins in Arizona, United States; (ii) since 2017, consulting
hydrogeologist in Chile specializing in lithium brine projects in Argentina
and Chile with experience in brine exploration, lithium brine resource and
reserve estimates, resource and reserve reporting, variable density flow and
transport modeling, and optimization of pumping.
For further information contact:
CleanTech Lithium PLC
Steve Kesler/Gordon Stein/Nick Baxter Jersey office: +44 (0) 1534 668 321
Chile office: +56 9 312 00081 (tel:+56931200081)
Or via Celicourt
Celicourt Communications +44 (0) 20 7770 6424
Felicity Winkles/Philip Dennis/Ali AlQahtani cleantech@celicourt.uk (mailto:cleantech@celicourt.uk)
Beaumont Cornish Limited (Nominated Adviser) +44 (0) 20 7628 3396
Roland Cornish/Asia Szusciak
Fox-Davies Capital Limited (Joint Broker) +44 (0) 20 3884 8450
Daniel Fox-Davies daniel@fox-davies.com (mailto:daniel@fox-davies.com)
Canaccord Genuity (Joint Broker) +44 (0) 20 7523 4680
James Asensio
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 lithium projects in Chile for the clean energy
transition. Committed to net-zero, CleanTech Lithium's mission is to become a
new supplier of battery grade lithium using Direct Lithium Extraction
technology powered by renewable energy.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and
Viento Andino, and exploration stage projects in Llamara and Arenas Blancas
(Salar de Atacama), located in the lithium triangle, a leading centre for
battery grade lithium production. The two most advanced projects: Laguna Verde
and Viento Andino are situated within basins controlled by the Company,
which affords significant potential development and operational advantages.
All four projects have good access to existing infrastructure.
CleanTech Lithium is committed to utilising Direct Lithium Extraction with
reinjection of spent brine resulting in no aquifer depletion. Direct Lithium
Extraction is a transformative technology which removes lithium from brine
with higher recoveries, short development lead times and no extensive
evaporation pond construction. www.ctlithium.com (http://www.ctlithium.com/)
**ENDS**
APPENDIX A - JORC TABLE 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF · Sub-surface brine samples were obtained using six different methods:
instruments, etc). These examples should not be taken as limiting the broad Packer sampling, PVC airlift sampling, disposable bailer sampling, electric
meaning of sampling. valve bailer sampling, HydraSleeve sampling, and composite brine sampling
during pumping tests.
· Include reference to measures taken to ensure sample representativity
and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to · Brine water samples were taken from the surface of the lagoon, in an
the Public Report. 800 m sampling grid, including eight sampling duplicates at random locations.
The samples were taken from a 0.5 m depth, and for positions with a depth
· In cases where 'industry standard' work has been done this would be above 5 m, a bottom sample was also obtained.
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · In the field, electrical conductivity and temperature were measured
mineralisation types (eg submarine nodules) may warrant disclosure of detailed for every sample with a Hanna Multiparameter device. All materials and
information. sampling bottles were first flushed with brine water before being filled.
· For every sample, 2 liters of brine were obtained with a 1-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 water
before receiving the final sample. Electrical conductivity was measured for
every sample with a Hanna Multiparameter model HI98192. The last two samples
that had similar stabilized electrical conductivity values were identified as
the primary and duplicate samples.
· For the packer sampling, a packer bit tool provided by the drilling
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, a half an hour waiting period took place to let brine enter to the
packer tool before sampling with a double valve bailer.
· Successive 1-liter samples were taken every 30 minutes with a double
valve bailer.
· Packer samples were obtained approximately every
18 m.
· PVC casing suction brine samples were extracted after well
development. Once the well was clean and enough water was purged (at least
three times the well volume), the PVC casing suction samples were taken from
bottom to top while the 2-inch PVC was extracted from the well. A 20-liter
bucket was filled with brine and samples were obtained from the bucket once
the remaining fine sediments were decanted.
· Brine airlift samples were taken every 6 m.
· Disposable bailer samples were obtained by JCP Ltda. specialists
in water sampling. Samples were taken from the interest depths with a double
valve disposable bailer. The bailer was lowered and raised with an electric
cable winch to maintain a constant velocity and avoid bailer valves opening
after taking the sample. A new bailer was used for each well.
· Disposable bailer samples were obtained every 6 m.
· In the first quarter of 2023, electric bailer samples were taken
from wells LV05, LV06, and LV02 after their proper development. Depth-specific
samples were obtained with a 1-liter electric bailer. This sampling process
was undertaken 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 were taken in wells LV01, LV02, LV03, LV07, and LV11.
Airlift samples were obtained from wells LV01, LV04, LV05, and LV06.
Disposable bailer samples were taken in wells LV01 and LV02. Electronic bailer
samples were obtained from wells LV02, LV05, and LV06. HydraSleeve samples
were taken from LV04 and LV11. Composite brine samples from pumping tests were
taken at wells LV05 and LV06.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc) and details (eg core
· Diamond drilling with a PQ3 diameter was used to drill wells LV01 and
diameter, triple or standard LV03 to a depth of 320 m. Below that depth, the drilling diameter was reduced
to HQ3.
tube, depth of diamond tails, face-sampling bit or other type, whether core is · At wells LV02 and LV04, diamond drilling with a PQ3 diameter was used
oriented and if so, by what method, etc). to their final depth.
· For both diameters, a triple tube core barrel was used for the core
recovery.
· Except for drillhole LV04, custom-made packer bits provided by Big
Bear were used to obtain brine samples.
· Drillholes LV01, LV02 and LV04 were cased with 3" PVC and silica
gravel. LV03 was not cased due to well collapse and tool entrapment.
· Wells LV05 and LV06 were drilled using the flooded reverse drilling
method with a 14 ¾ inch diameter to their final depths. Both wells were cased
with 8-inch PVC and gravel pack.
· Diamond drillholes LVM05a and LVM06c were drilled with a HQ3 diameter
from surface to the final depth. LVM05b was drilled with Tricone 3 7/8"
diameter from land surface to 41.5 m.
· Diamond drillhole LV07 was drilled with PQ3 diameter from land
surface to 300 m, and with HQ3 diameter from 300 to 650 m.
· Diamond drillhole LV11 was drilled with PQ3 diameter from land
surface to 254 m with no recovery in the first 50 meters, and it was drilled
with HQ3 diameter from 254 to 412.85 m.
Development operations
· After PVC casing and silica gravel installation took place at the
exploration wells, a development process was undertaken to ensure clean
aquifer water was available during sampling. The well development included
injection of a hypochlorite solution to break the drilling additives, and
purging via airlifting of a minimum three well volumes was undertaken to clean
the cased well from drilling mud.
· The developing process was made using a small rig, a high-pressure
compressor and 2-inch threaded PVC that can be coupled to reach any depth. The
purging/cleaning operation was made from top to bottom, injecting air with a
hose inside the 2-inch
PVC and "suctioning" the water to emulate a reverse circulation (airlift)
system.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Diamond core recovery was ensured by direct supervision and
results assessed. continuous geological logging in the field.
· Measures taken to maximise sample recovery and ensure representative · For wells drilled using the flooded reverse drilling method, drill
nature of the samples. cuttings were collected in 10 kg sample bags for geological logging and tests
purposes. Direct supervision and continuous geological logging were applied to
· Whether a relationship exists between sample recovery and grade and ensure reliable recovery and descriptions
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 · Geological logging took place continuously during drilling in the
geotechnically logged to a level of detail to support appropriate Mineral field. Descriptions were done by CleanTech and M&A.
Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Logging forms were prepared prior to field work and were used to
ensure the same information and style was used regardless of the field
· The total length and percentage of the relevant geologist..
intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · During the brine batch preparation process, the samples were
taken. transferred to new sampling bottles. Quality control samples, including
standards (internal standards composed of a known stable brine), duplicates,
· If non-core, whether riffled, tube sampled, rotary split, etc and and blank samples (distilled water) were randomly included in the batch. After
whether sampled wet or dry. quality control sample insertion, all samples were re- numbered before
submitting 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 were then shaken to
sample preparation technique. remove water excess, avoiding contamination
· 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 were assayed by ALS Life Science Chile laboratory
laboratory procedures used and whether the technique is considered partial or (ALS), for Li, K, B, Mg, Ca, Cu, and Na using the ICP-OES method described on
total. QWI- IO-ICP-OES- 01 Edition A, Modification 0 EPA 3005A; EPA 200.2.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
· For density measurements, the method described by Thompson and
Troeh Y "Los suelos y su fertilidad." 2002. Editorial Reverté S.A. Cuarta
Edición. Págs.75-85, was used.
· Chlorine determination was done based on Standard Methods for the
Examination of Water and Wastewater, 23rd Edition 2017. Método 4500-Cl-B
QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B,
22nd Edition 2012.
· Total Dissolved Solid (TDS) determination was done using the
method described on INN/SMA SM 2540 C Ed 22, 2012.
· Sulfate was analyzed according to the method described in INN/SMA
SM 4500 SO4-D Ed 22, 2012.
· Duplicates were obtained randomly during brine sampling. Also,
blanks (distilled water) and standards were randomly inserted during the
laboratory batch preparation.
· The 2022 standards were prepared by the Universidad Católica del
Norte, Chile using a known stable brine. Standard nominal grade was calculated
in a round-robin process that included four laboratories. The ALS laboratory
was validated during the round-robin process.
· Check samples composed by standards, duplicates, and blanks were
inserted at a rate of one for each 20 original samples during the year 2022.
· After the year 2023, quality control samples were inserted at a
rate of one every 10 original samples.
For the 2023 QA/QC process, a new set of standards was internally prepared
using 200 liters of
brine obtained from well LV02 during the development process. Standard nominal
lithium grade was calculated in a round-robin process that included four
laboratories.
· For the 2024 sampling campaign, duplicates, standards, and blanks
were utilized during brine sampling and were submitted for analysis. Standards
for the 2024 campaign were prepared in the University of Antofagasta. Quality
control samples were inserted at a rate of approximately one every 10 original
samples.
Geophysics:
· To determine the lake bathymetry, a Garmin Echomap CV44 and Eco
Probe CV20-TM Garmin were used. The equipment has a resolution of 0.3 ft and
maximum depth measurement of 2,900 ft. The bathymetry data was calibrated
using a density of
1.14 g/cm3.
· For the TEM geophysical survey, a Zonge multipurpose digital
receiver model GDP-32 and TEM transmitter model ZT-30 were used.
· For the first survey campaign in May 2021, a coincident
transmission/reception loop was utilized with 11 lines and a 400 m separation.
167 stations where designated with a 100x100 m2 loop and four stations with a
200x200 m2 loop; a survey depth of 300 m and 400 m was reached, respectively.
· For the second TEM geophysical survey in March 2022, 32 TEM
stations were surveyed which utilized six lines and a 400 m separation. A
coincident loop Tx=Rx of 200 x 200 m2 allowed for the investigation to a depth
of 400 m.
· For the third TEM geophysical survey in January 2023, 14 TEM
stations were surveyed with two lines and a 400 m separation. A coincident
loop Tx=Rx of 200x200 m2 allowed for investigation to a depth of 400 m.
· The equipment used for the gravity survey was a Scintrex portable
digital model CG-5 Autograv, "microgravity meter", with a 0.001 mGal
resolution as well as a tidal, temperature, pressure, and
automatic leveling correction system.
· The topographic data measured during the gravity survey was
acquired with a double frequency differential positioning equipment, brand CHC
NAV, model I-80 GNSS, that consists of two synchronized instruments, the first
of which was fixed at a known topographic station, and the other that is
mobile through the surveyed gravimetric stations.
· In January 2023, a gravity survey was made consisting of 111
stations, with a separation of 200 m to 300 m, and arrangement through four
lines around the lagoon area.
Verification of sampling and assaying · The verification of significant intersections by either independent · The assay data was verified by M&A and C. Feddersen based on the
or alternative company personnel. assay certificates.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data · Data from bathymetry and geophysics was used as delivered by
verification, data storage (physical and electronic) protocols. Servicios Geológicos Geodatos SAIC.
· Discuss any adjustment to assay data.
· Geological logs were managed by the geology contractor GEOMIN and
were checked by the Competent Persons.
· Brine samples batches were prepared personally by the competent
person, JCP Ltda., Geomin SpA or according to Competent Person's instructions.
All
data was stored in Excel files.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Sample coordinates were obtained with a non- differential hand-held
and down-hole surveys), trenches, mine workings and other locations used in GPS unit.
Mineral Resource estimation.
· Specification of the grid system used.
· The bathymetry coordinates in Laguna Verde were obtained by a Thales
· Quality and adequacy of topographic control. Navigation differential GPS system, which consists of two GPS ProMark3 devices
designed to work in geodesic, cinematic, and static modes of high precision,
where one of the instruments was installed as a base station and the other on
board of the craft.
· The TEM geophysical survey coordinates were obtained with a
non-differential hand-held GPS unit.
· Drillhole collars were obtained with a non-differential hand-held GPS
unit. Positions were verified by the mining concession field markings.
· Gravity stations were located with a double frequency differential
positioning equipment, brand CHC NAV, model I-80 GNSS, that consists of two
synchronized
pieces of equipment, one fixed at a known
topographic station, and the other mobile at the surveyed gravimetric
stations.
· 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.
· Whether the data spacing and distribution is sufficient to establish · The geochemical lagoon sample spacing was approximately 800 m,
the degree of geological and grade continuity appropriate for the Mineral covering the entire lagoon area.
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
· Packer brine samples were taken vertically every 18 m.
· PVC bailer samples (disposable and electric) were taken vertically
every 6 m.
· For bathymetry, two grids were used, one of 400 m and the other of
200 m in areas where the perimeter has more curves.
· For TEM geophysical surveys, the distance between stations was 400 m.
· For the gravimetric survey, the distance between stations was 200 -
300 m.
· The author believes that the data spacing and distribution are
sufficient to establish the degree of geological and grade continuity
appropriate for the Resource Estimate.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The lagoon in Laguna Verde is a free water body and no mineralized
possible structures and the extent to which this is known, considering the structures are 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 kept on site before transporting
them to the Copiapó city warehouse where the laboratory sample batch was
prepared and stored in sealed plastic boxes. Subsequently, the Laguna Verde
samples were sent via courier to the ALS laboratory in Antofagasta. The
transport of samples was directly supervised by the Competent Person.
· ALS laboratory personnel reported 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 M&A and C. Feddersen against the
assay certificates.
· The July 2021 JORC technical report was reviewed by Montgomery
& Associates Vice President and CP Michael Rosko, MS PG, SME Registered
Member #4064687. 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 in 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, and data acquisition and QA/QC protocols were audited on
October, 2022 by Don Hains, P. Geo. from Hains Engineering Company Limited.
· Hains concluded 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."
· With respect to the exploration program, Hains stated that "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".
· With respect to specific yield, Hains stated that
"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. Hains 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.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · In Laguna Verde, CleanTech, through Atacama Salt Lakes SpA, has 66
agreements or material issues with third parties such as joint ventures, pedimentos constituidos which cover an area of 17,200 hectares, 7 solicitudes
partnerships, overriding royalties, native title interests, historical sites, de mensura which cover an area of 682 hectares, and 35 pertenencias which
wilderness or national park and environmental settings. cover an area of 3,860 hectares. CleanTech also has additional pedimentos en
trámite. Drilling and sampling for lithium can occur where the CleanTech has
· The security of the tenure held at the time of reporting along with preferential licences, which covers a majority of their concessions.
any known impediments to obtaining a licence to operate in the area.
· All concession acquisition costs and taxes have been reportedly fully
paid by CleanTech, and there are no claims or liens against them.
· In Laguna Verde, CleanTech is also in the application process for a
Contrato Especial de Operation de Litio (CEOL) from the Chilean Government,
which would grant them the sole right to explore and exploit lithium in the
basin. The current extent of the CEOL is referential and could be subject to
change, however it is expected to cover a large portion of the basin.
CleanTech has confirmed it is confident in its CEOL application for Laguna
Verde, given the extensive work programmes CleanTech has carried out over the
past 2-3 years.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · In Laguna Verde, exploration work has also been done by Pan American
Lithium and Wealth Minerals Ltda.
Geology · Deposit type, geological setting and style of mineralization. · Laguna Verde is a hypersaline lagoon that is classified as an
immature clastic salar. The deposit is composed of a surface brine resource,
including the brine water volume of the surface lagoon. The sub- surface
resource formed by brine water hosted in volcano-clastic sediments that lie
beneath the lagoon.
Drill hole Information · A summary of all information material to the understanding of the · The following drillhole are in the WGS84 zone 19S coordinate system:
exploration results including a tabulation of the following information for
all Material drill holes:
o easting and northing of the drill · LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.
Azimuth 0°, dip -90°, Length 474 m
hole collar · LV02 E 553,992 N 7,024,396 ELEV 4,354 m a.s.l.
o elevation or RL (Reduced Level - elevation above sea level in metres) of Azimuth 0°, dip -90°, Length 339.4 m
the drill hole collar
o dip and azimuth of the hole
· LV03 E 549,980 N 7,028,434 ELEV 4,402 m a.s.l.
o down hole length and interception depth
Azimuth 120°, dip -60°, Length 547.5 m
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 · LV04 E 556,826 N 7,024,390 ELEV 4,350 m a.s.l.
understanding of the report, the Competent Person should clearly explain why
this is the case. Azimuth 0°, dip -90°, Length 311 m
· LV05 E 550,972 N 7,027,908 ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 434.6 m
· LV06 E 555,912 N 7,026,004 ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 405 m
· LVM05a E 550,921 N 7,027,908 ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 221.5 m
· LVM05b E 550,946 N 7,027,951 ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 41.5 m
· LVM06c E 555,959 N 7,026,032 ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 40 m
· LV07 E 552,561 N 7,025,296 ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 650 m
· LV11 E 555,582 N 7,024,793 ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 412.8 m
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
· For the sub-surface resource, no low-grade cut-off or high-grade
capping has been implemented.
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 mineralization widths and intercept lengths · These relationships are particularly important in the reporting of · In Laguna Verde, the relationship between aquifer widths and
Exploration Results. intercept lengths are direct with vertical wells, however LV03 was inclined
with a dip of -60°.
· 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
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.
·
Loc
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of
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ati
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Dri
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·
Hyd
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Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Reported results have not been filtered based on the exclusion of low
practicable, representative reporting of both low and high grades and/or or high grades.
widths should be practiced to avoid
misleading reporting of Exploration Results.
· Pumping tests were conducted at wells LV05 and LV06.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · A 50 hp submergible electric pump, and piping with flowmeters were
reported including (but not limited to): geological observations; geophysical used for the pump tests. The tests consisted of a variable rate pumping to
survey results; geochemical survey results; bulk samples - size and method of verify the aquifer and pump capacity, as well as subsequently constant rate
treatment; metallurgical test results; bulk density, groundwater, geotechnical (48-hour to 7-day) pumping tests to obtain aquifer parameters and monitor
and rock characteristics; potential deleterious observed water levels and the extracted brine chemistry.
or contaminating substances.
· 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 · Exploration drilling and testing will continue in 2025. Areas of
extensions or depth extensions or large-scale step-out drilling). additional exploration will include the western and northern/northeastern
portion of the current property concessions. A future long-term pumping and
· Diagrams clearly highlighting the areas of possible extensions, reinjection test is also planned in 2025.
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.)
Criteria JORC Code explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes.
· Data validation procedures used. · For the previous resource estimate (Feddersen, 2023), all databases
were built from original data by Competent Person C. Feddersen and were
checked by project personnel.
· For the resource estimate detailed in this report, databases were
reviewed by M&A staff and the CPs.
Site visits · Comment on any site visits undertaken by the Competent Person and the
outcome of those visits.
· A site visit was undertaken by Competent Person C. Feddersen from
· If no site visits have been undertaken indicate why this is the case. June 2nd to June 4th, 2021. The outcome of the visit was a general geological
review and the lagoon water brine geochemical sampling that led to the July
2021 JORC Technical Report.
· Competent Person M. Rosko conducted a site visit in October 2021 to
review the exploration activities.
· The January to May 2022 drilling campaign was continually supervised
by the Competent Person C. Feddersen, that led to the September 2022 updated
JORC Technical Report.
· The October 2022 to May 2023 drilling campaign was also supervised by
Competent Person C. Feddersen.
· The 2024 campaign was supervised by M&A Competent Persons and
staff.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological
interpretation of the mineral deposit.
· For the surface brine resource, an average lithium grade was used for
· Nature of the data used and of any assumptions made. the entire surface water body based on the consistent values obtained; thus,
there is a high certainty.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation.
· The use of geology in guiding · For the sub-surface resource, the geological interpretation was made
based on the TEM and gravity surveys conducted by Geodatos. The lithological
interpretation was confirmed by the
January - May 2022 diamond drillhole campaign
and controlling Mineral Resource estimation. (LV01 to LV04), December 2022 - May 2023 drillhole campaign (LV05 & LV06),
and 2024 campaign (LV07 & LV11).
· The factors affecting continuity both of grade and geology.
· Low resistivities are associated with volcaniclastic sediments
saturated in brines, but also with tuff, very fine sediments, or clays. The
direct relationship between the low resistivity layer with the overlying
hypersaline lagoon raises the confidence that the low resistivities are
associated with brines.
· Drillholes confirm the geological interpretations.
Dimensions · The extent and variability of the Mineral Resource expressed as
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource. · For the surface brine resource, the lagoon dimensions are 14,682,408
m2 of area with depths ranging from 0 m to 7.18m with an average depth of 4.05
m.
· The sub-surface brine resource is a horizontal lens closely
restricted to the lagoon perimeter with an area of approximately 55 km2 and
depths of more than 400 m, from approximately 4,309 m a.s.l. to the deepest
exploration well (LV07; 650 m deep).
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied
and key assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data · For the surface brine resource, the surface lake brine water
points. If a computer assisted estimation method was chosen include a volume is directly obtained by the bathymetry study detailed on Section 4.2.
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 Lithium sample values are in general homogeneously distributed along the
account of such data. lagoon, thus the lithium content in the lake was not estimated via kriging or
another geostatistical method. The use of the total samples average value 246
· The assumptions made regarding recovery of by- mg/l was used for the surface brine resource estimate.
· The subsurface resource was updated using a block model in the
Leapfrog software. During the resource estimation process, the CPs considered
the Canadian Institute of Mining Best Practice for Reporting of Lithium Brine
Resources and Reserves as well as the Houston et al. guidelines for brine
deposits (The Evaluation of Brine Prospects and the Requirement for
Modifications to Filing Standards).
· Leapfrog is an industry-standard software program which uses a
3-D implicit modeling approach;
products. with Leapfrog Geo, the geological model was created, and subsequently, the
resource block model construction and mass calculations were undertaken using
· Estimation of deleterious elements or other non-grade variables of the Edge extension.
economic significance (eg sulphur for acid mine drainage characterisation).
Considering the horizontal and vertical spacing of obtained field samples, the
· In the case of block model interpolation, the block size in relation block model discretization was 150 m by 150 m (horizontal spacing), with a
to the average sample spacing and the search employed. vertical spacing of 5 m, and the total number of blocks corresponds to
1,926,123.
· Any assumptions behind modelling of selective mining units.
· Lithium brine concentration results obtained from sampling were
· Any assumptions about correlation between variables. utilized as an input for the resource block model; original ALS results from a
variety of sampling methods (including packer, airlift, and pumping tests)
· Description of how the geological interpretation was used to control were used for a majority of the wells. Packer samples were prioritized for the
the resource estimates. resource estimate, as they result in depth-specific concentrations, and other
methods were used where packer samples were not available.
· 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. · Drainable porosity values for the hydrogeologic units in Laguna
Verde were estimated based on the results of Daniel B. Stephens &
Associates, Inc. (DBS&A) laboratory (LV01, LV02, LV03 and LV04) and GSA
Laboratory (LV07 and LV11) testing, and their reasonableness was confirmed
based on lithology of the unit.
· Prior to the resource block modeling, an exploratory data
analysis (EDA) phase was undertaken for lithium concentrations to identify
trends such as univariate statistics and histograms, box plots, and spatial
correlations.
· Ordinary Kriging was employed for the interpolation of lithium
concentrations within the subsurface block model.
· The resource block model was validated by visual inspection and
comparison of the measured and block model concentrations. Swath plots were
also utilized.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Moisture content is not relevant for the estimation of brine
moisture, and the method of determination of the resources.
moisture content.
Cut-off parameters · The basis of the adopted cut- off grade(s) or quality · A cut-off grade of 100 mg/L was applied based on the Laguna Verde
Scoping Study capital expenditure
parameters applied.
and operating expenses. Only
blocks with interpolated lithium grades greater than the applied cut-off grade
(100 mg/L) were considered for the resource estimate.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Mining will be undertaken by pumping brine from vertical production
dimensions and internal (or, if applicable, external) mining dilution. It is wells and re-injection of spent brine will subsequently occur back in the
always necessary as part of the process of determining reasonable prospects aquifer.
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.
· Pumping tests conducted to date support individual well flow
rates of up to 15 L/s.
Metallurgical factors or assumptions
· The metallurgical capacity of lithium recovery in the process has
been estimated at 90% to obtain battery grade lithium carbonate.
· The planned process for obtaining lithium carbonate considers the
· The basis for assumptions or predictions regarding following stages:
metallurgical amenability. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction to consider
potential metallurgical methods, but the assumptions regarding metallurgical o The lithium is obtained using selective adsorption of lithium-ion from
treatment processes and parameters made when reporting Mineral Resources may Laguna Verde brine using the DLE process.
not always be rigorous. Where this is the case, this should be reported with
an explanation of the basis of the metallurgical assumptions made. o The spent solution (without lithium) will be reinjected back into the
Laguna Verde aquifer.
o The DLE process allows impurity removal waste to be minimal.
o The diluted lithium solution recovered from the DLE process is
concentrated utilizing reverse osmosis water removal. The removed water is
recovered and returned to the process to minimize the water consumption
requirements.
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.
o The lithium carbonate obtained is washed with
ultra-pure water to obtain battery grade product with minimum 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.
· The selected DLE process has been tested by Beyond Lithium 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% pure Li2CO3.
· The process has been modelled by Ad infinitum using the SysCAD
simulation platform and their AQSOL thermodynamic property package. With the
model, simulations of the process were made to obtain the appropriate mass
balances.
Environmen- tal factors or assumptions · Assumptions made regarding possible waste and process residue · The main environmental impact that could occur at Laguna Verde is a
disposal options. It is always necessary as part of the process of determining reduction of the surface water features due to brine pumping, however
reasonable prospects for eventual economic extraction to consider the reinjection will be aimed to sustain the surface water features and limit
potential environmental impacts of the mining and processing operation. While impacts from production pumping. Other potential environmental factors may be
at this stage the determination of potential environmental impacts, associated with the main plant installation.
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. · Bulk density is not relevant to brine resource estimation.
· 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
varying confidence categories.
· The preferential concession area used for the resource calculation,
· Whether appropriate account has been taken of all relevant factors which corresponds to licenses held by Cleantech Litihum or in process as the
(ie relative confidence in tonnage/grade estimations, reliability of input preferential holder (with no conflicting applications or concessions from
data, confidence in continuity of geology and metal values, quality, quantity other mining companies). The area outside the preferential licences that could
and distribution of the data). be converted to CleanTech's control, based on the CEOL award, was considered
as Potential Upside.
· Whether the result appropriately reflects the Competent Person's view
of the deposit.
· The areal extent of the resource categories was largely based on the
suggestions of Houston et al. (The Evaluation of Brine Prospects and the
Requirement for Modifications to Filing Standards) for immature salt flats:
o Measured resources were limited to within 1.25 km from the exploration
well
o Indicated resources were limited to within 2.5 km from the exploration
well
o Inferred resources were limited to within 5 km from the exploration well
· The determination of the Indicated resource areas was dependent
on the availability of depth-specific brine analyses, drainable porosity
measurements and QA/QC. Differentiation between these areas and Measured areas
was largely dependent on the well spacing, amount and reliability of field
data, pumping test results, and overall lithologic and grade continuity
between wells.
· An extension of the Inferred resources to 5 km is supported by
the conducted geophysics which
indicates probable brine in sediments underlying the
young volcanic outcops surrounding the lake. Furthermore, inclusion of the
lower volcanic rock unit is supported by the following: (i) it was possible to
obtain packer samples in the deepest portion of LV07; (ii) the density
contrast used to set the upper contact of the lower volcanic rock (-0.35
gr/cc) was intermediate and not the deepest density contrast;
(iii) conceptually, Laguna Verde is found in a tectonically active region with
fractures in the host rock, as indicated by hydrothermal activity along the
eastern side of the lake.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates.
· The July 2021 JORC technical report were reviewed by Montgomery
& Associates Vice President Michael Rosko, MS PG SME Registered Member
#4064687.
· 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 by 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
Estimate, and data acquisition and QA/QC protocols were audited on October
2022 by Don Hains, P. Geo. from Hains Engineering Company Limited.
· In the report, Hains 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".
· With respect to the exploration program Hains' 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".
· With respect to the specific yield estimates, Hains' comments are
"RBRC test work at Daniel 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. Hains 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 the contained brine by
appropriate by the Competent Person. For example, the application of 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 specific yield,
the resource within stated confidence limits, or, if such an approach is not 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 yet 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 · Potential sources of uncertainty related the resource estimate
assumptions made and the procedures used. include:
· These statements of relative accuracy and confidence of the estimate · Potential permitting restrictions, including the approval of the
should be compared with production data, where CEOL extension and environmental limitations related to eventual extraction of
the surface brine resource in the lake.
available.
· The modeled concentration distribution and lower lithium grades
associated with hydrothermal upwelling to the east of Laguna Verde.
· The assigned drainable porosity of the lower volcanic rock (1%),
which is based on limited core testing of that unit; additional deep
exploration and sampling would help resolve uncertainty regarding the Inferred
Resource area at depth.
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