REG - CleanTech Lithium - Upgraded JORC Resource - Laguna Verde Li Project
17/07/2023 07:00
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RNS Number : 1480G CleanTech Lithium PLC 17 July 2023
17.07.23
CleanTech Lithium PLC ("CleanTech Lithium" or the "Company")
Upgraded JORC Resource to 1.8 million tonnes of LCE at flagship Laguna Verde
project,
of which Measured & Indicated Resource increased by 39% to 1.1 million
tonnes LCE,
Reinforcing economic potential
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration
and development company advancing sustainable lithium projects in Chile for
the EV transition, announces an upgraded JORC resource estimate of 1.8 million
tonnes of lithium carbonate equivalent ("LCE") at a grade of 200mg/L lithium
at the Laguna Verde project. This upgrade includes a significant increase
(39%) in the Measured and Indicated resource to 1.1 million tonnes LCE,
including a large increase (174%) in the Measured resource.
This increase to the Measured and Indicated resource will be used in the
Pre-Feasibility Study ("PFS") which is currently underway. This study
reinforces the project's path to production, capital requirements and will
support CleanTech Lithium's engagement with potential strategic partners.
Summary of the upgrade:
Table 1: Comparison of Laguna Verde JORC Resource Estimates: September 2022
and July 2023
This resource estimate is in line with the Board´s expectations with the
increase in the Measured + Indicated category now sufficient for a production
rate of 20,000 tonnes per annum of battery grade lithium carbonate for a
>30-year operation.
Highlights:
· Following successful drill programmes in 1H 2023, the JORC resource
estimate at Laguna Verde has been upgraded to 1.8 million tonnes of LCE at a
grade of 200mg/L Lithium
· Measured and Indicted resource increased by 39% to 1.1 million tonnes
LCE, of which Measured increased by 174% to 0.46 million tonnes LCE
· At the PFS/DFS stage when mining reserves are calculated, Measured
resources are used to develop proven reserves and Indicated resources to
probable reserves, so the large increase in Measured resource bodes well for
PFS/DFS stage reserve calculation
· This follows a recent pump test programme completed on the two infill
wells that supports the bore field flow rates of 30L/s that were modelled in
the Laguna Verde Scoping Study announced in January 2023
· Total capex spend on the Laguna Verde drilling and testing campaign
forecast at £2.25m was within 3% of the approved budget
· For the Company´s second project, Francisco Basin, a resource
upgrade is expected in the coming weeks based on the results from the five
wells drilled in 1H 2023
· This will be followed soon afterwards by the Francisco Basin Scoping
Study which is already well advanced.
Commenting, Aldo Boitano, Chief Executive Officer, of CleanTech Lithium PLC,
said: "We are very encouraged by this upgrade in the Laguna Verde resource
estimate to 1.8 million tonnes of LCE with 1.1 million tonnes now in the
Measured + Indicated category, providing more confidence in the resource
potential and further de-risking of the project after an extensive work
programme this year.
The resource estimate provides the basis for the Pre-Feasibility Study
currently underway with a base case production rate of 20,000 tonnes of
lithium carbonate per annum. We expect the study will reaffirm the economic
potential for this project as we advance the use of Direct Lithium Extraction
to supply green lithium to the EV industry."
Further Information
Project Background
The Laguna Verde Project is located in Chile and has a licence area of 67km(2)
covering a steep valley shaped basin which at its low point features a
hypersaline lake (´Laguna´) covering 15.2km(2). A thick sub surface aquifer
starts from shallow depths covering an area of approximately 55 km(2). This
sub surface aquifer is the basis for the resource estimate at the Project.
The previous resource estimate for the Laguna Verde was reported in September
2022, based on three wells completed in 1H 2022. To upgrade the resource
estimate to a higher confidence level, a drill programme based on two infill
wells was undertaken in the first half of 2023. The location of wells
completed in 2022 and 2023 are shown in Figure 1.
Fig. 1: Laguna Verde Drill Hole Map
Resource Summary
The 2023 resource estimate showing the key inputs in the calculation and the
change vs the previous 2022 estimate is shown below in Table 2. The upgraded
resource estimate represents an increase in the total resource of 17% to 1.8
million tonnes LCE and including a 39% increase in the Measured and Indicated
category to 1.1 million tonnes LCE, within which the Measured resource
increased 174% to 0.5 million tonnes LCE. This represents a large increase in
the confidence level of the resource estimate.
Table 2: Updated JORC Resource Estimate 2023
Geological Setting
The Laguna Verde basin is an elongated shaped basin aligned on a NW-SE axis
bounded on all sides by volcanic mountain ranges that rise to elevations above
6,000m. The topographical low point of the basin features a hypersaline
surface lake or Laguna which has an area of 15.2km(2) and an average depth of
approximately 4m. The surface or margin of the Laguna is at an elevation of
approximately 4,332m. The presence of the Laguna leads to the classification
of Laguna Verde as an immature salar basin. A geological profile of the
basin is presented in Figure 2 which was built from surface geology mapping, a
gravimetric survey in the basin completed for the Cerro Casale mine
environmental impact assessment as reported by SRK in 2011, a gravimetric
survey completed in Laguna Verde in January 2023 and from geological
information provided by the 2022 - 2023 drill programme.
Fig. 2: Laguna Verde Geological Profile A - A´
An interpretation of the general stratigraphic column based on stratigraphy of
the six completed drill holes and the January 2023 gravimetry survey, which
aligns with the geological profile, is shown in Figure 3. Laguna Verde general
stratigraphy is characterised by a band of approximately 200m thick ash tuffs
with intercalations of volcanic sedimentary deposits that are dominant in the
southern area of the graben. The tuffs overlie volcanic sedimentary deposits
with fine gravels intercalations, that extend from approximately 250m to 400m,
until the andesitic basement at 3,900m above sea level (a.s.l) average,
reaching a maximum depth at 3,680m a.s.l. according to the January 2023
gravimetry survey. The volcanic sedimentary deposits are dominant in the
northern area of the Laguna Verde graben. The brine aquifer was sampled in the
drillholes for more than 400m, from approximately 4,309m a.s.l. to the
basement level.
Fig. 3: Laguna Verde General Stratigraphy Column Interpretation
Drilling Programme
A resource drill programme consisting of six wells was designed to test a
resource area based on the interpreted extent of a low resistivity brine
aquifer identified by a transient electromagnetic geophysics survey. The
planned hole locations are shown in Figure 1. A first drilling programme
comprising drill holes LV01 - LV04 was undertaken from March to the end of
May, 2022, when the programme was suspended due to the onset of winter weather
conditions which prevented the sampling of LV04. Well LV01 was completed to a
depth of 474m, LV02 reached 339.4m, LV03 reached 547.5m and LV04 311m. Two
infill wells, LV05 and LV06, were completed in 1H 2023 reaching depths of
434.6m and 405m respectively.
Drilling Method
The four-hole programme (LV01 - LV04) used diamond drilling initially with PQ3
(122mm diameter) to a depth of 320m and then HQ3 (95.7mm) to final depth.
Drillholes LV01, LV02 and LV04 were cased with 3-inch PVC. LV03 could not be
cased because drilling HWT rods and tools were stuck in the well during
drilling. The infill drilling programme, LV05 and LV06 utilised a reverse
circulation flooded system. The wells were drilled with a 14 ¾ -inch diameter
to the final depth, then an 8-inch diameter PVC casing was installed with
silica gravel used to pack the casing. The PVC casing is slotted over the
depth interval of the brine aquifer. This is a wide diameter well design which
is suitable for the high-volume pump tests required for final feasibility
level hydrogeological modelling, and ultimately for conversion to production
bores in a commercial stage operation.
Fig. 4: Drill Rig and Auxiliary Equipment at LV05, 2Q 2023
Brine Sampling Collection and Analysis
Brine was sampled with two methods, suction samples and bailer samples. After
completion of the well with 8-inch PVC and silica gravel, a well development
process including purging the well of three well volumes of brine followed,
then a minimum 5-day stabilisation period applied. Suction samples were
collected via air lifting of samples into a 20-litre bucket. Samples were
taken from every 6m support level. This operation used a rig with a compressor
as shown in Figure 5. Bailer samples were then collected by a specialist water
sampling contractor, using an electronic bailer that is raised and lowered
with an electric cable winch as shown in Figure 6. Bailer samples were
collected every 6m.
Fig. 5: Suction Sampling with Compressor Fig. 6: LV05
Bailer Sampling using Electric Winch
Samples were sealed in clean polyethylene bottles, labelled and package on
site for shipment to ALS Life Science Chile laboratory in Santiago. The suite
of element analysis covered B, Ca, Cu, Li, Mg, K, Na, CACO(3), CL, SO4, TDS
and Density. A detailed QA/QC procedure was applied for sample collection and
analysis. Analyses for LV01, LV02 and LV03 were used for the Laguna Verde
resource reported in a RNS dated 13 September 2022. Analyses for LV05, LV06
and reconditioned well LV02 were reported in a RNS dated 6 June 2023. The
average lithium analyses for LV04 was only 25mg/l and this drill hole is
clearly outside the lithium brine of interest.
Sediment Sampling and Specific Yield Calculation
Core samples were obtained every 10m from drill holes LV01 - LV04 (drilled in
2022). Undisturbed diamond drillhole core samples with 3 to 5-inch length in
both PQ and HQ diameter were obtained for testing (Fig. 7). Samples were
prepared and sent to Daniel B. Stephens & Associated, Inc. laboratory
(DBS&A) in New Mexico, USA.
Fig. 7: Core Samples for Porosity Laboratory Tests from September 2022
Samples underwent Relative Brine Release Capacity laboratory tests, which
predict the volume of solution that can be readily extracted from an
unstressed geological sample. This method by itself is insufficient for
calculating an effective porosity (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.
Brine release tests were not carried out for drill holes LV05 and LV06
(drilled in 2023) as these were drilled with a reverse flooded system where
only drill cuttings and not core were available.
Resource Model
The sub-surface geological 3D model was built modifying the September 2022 3D
model, discarding the resource volume in the LV04 area and adding an extension
on the north-east exploration area according to the Transient Electro Magnetic
(¨TEM¨) profile surveyed in that zone in January 2023 as shown in Fig. 8.
Fig. 8: Sub-Surface 3D Geological Model Construction
The 3D model was constrained vertically at the ceiling by the brine intervals
intercepted in each of the five wells completed in the resource area, and at
the bottom by the basement intercepted in drill holes LV01, LV02 and LV05 and
by a gravimetry survey with this model output shown in Fig. 9.
Fig. 9: 3D Geological Model with Brine Aquifer Clipped to Drilling Intercept
Derived Ceiling/Basement
Resource Categorization
Sub-surface resource criteria was based on the recommended sampling grid
distances of the complementary guide to the CH 20235 code to report resources
and reserves in brine deposits. A factor in resource categorization is density
of samples. Considering a higher density of samples above 4,112m a.s.l., the
sub surface resource categorisation was split for above and below 4,112m
a.s.l. The block model output for the above and below 4,112m a.s.l. level is
shown in Figures 10 and 11.
Fig. 10: Resource Category Block Mode Output for Above A.S.L. 4,112m a.s.l.
Fig. 11: Resource Category Block Mode Output for Below A.S.L. 4,112m a.s.l.
Resource Calculation
The following tables summarise the Laguna Verde Resources updated calculation
separated by resource category with the total resources presented in the final
Table 7. For the calculation of resources in Lithium Carbonate, an industry
standard 5.323 factor was applied over the Li mass.
Total Resource Measured
Surface Lagoon Volume m(3) 59,490,027
Sub Surface Volume m(3) 3,597,600,000
Sub Surface Porosity % 10.4%
Total Effective Volume m(3) 432,344,899
Average Grade Li mg/l 199
Li Mass tonne 86,158
Measured Resource (Lithium Carbonate Equivalent) tonne 458,617
Table 3: Laguna Verde Total Measured Resources
Total Resource Indicated
Volume m(3) 6,328,320,000
Porosity % 10.1%
Effective Volume m(3) 637,481,322
Average Grade Li mg/l 194
Li Mass tonne 123,639
Indicated Resource (Lithium Carbonate Equivalent) tonne 658,130
Table 4: Laguna Verde Total Indicated Resources
Total Resource Measured + Indicated
Total Effective Volume m(3) 1,069,826,221
Average Grade Li mg/l 196
Li Mass tonne 209,797
Measured + Indicated (Lithium Carbonate Equivalent) tonne 1,116,747
Table 5: Laguna Verde Total Measured + Indicated
Total Resource Inferred
Volume m(3) 6,030,000,000
Porosity % 9.8%
Effective Volume m(3) 590,621,990
Average Grade Li mg/l 208
Li Mass tonne 122,567
Inferred Resource (Lithium Carbonate Equivalent) tonne 652,426
Table 6: Laguna Verde Total Inferred Resources
Total Resource Measured + Indicated + Inferred
Total Effective Volume m(3) 1,660,448,212
Average Grade Li mg/l 200
Li Mass tonne 332,364
Measured + Indicated + Inferred Resource (Lithium Carbonate Equivalent) tonne 1,769,173
Table 7: Laguna Verde Total Measured + Indicated + Inferred Resources
Note: The Resources above are reported under JORC Code, 2012 Edition. The
Company, which is the operator of the LV project, holds 100% interest in the
LV Project (directly and under option agreement) and accordingly the above are
all gross figures.
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 8434 2754
Felicity Winkles/Philip Dennis cleantech@celicourt.uk
Beaumont Cornish Limited +44 (0) 207 628 3396
(Nominated Adviser)
Roland Cornish/Asia Szusciak
Fox-Davies Capital Limited +44 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
Competent Person
The following professional acted as qualified person, as defined in the AIM
Note for Mining, Oil and Gas Companies (June 2009):
· Christian Gert Feddersen Welkner: The information in this release
relates to drilling results, geology, brine assays reports, sediment sampling
/ specific yield calculation and resource calculation are based on information
compiled by Christian Gert Feddersen Welkner, who is an independent Qualified
Person to the Company and is a Member of Comision Calificadora de Competencias
en Recursos y Reservas Mineras Chile that is a 'Recognised Professional
Organisation' (RPO). Mr Feddersen has sufficient experience that is relevant
to the style of mineralization and type of deposit under consideration and to
the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Feddersen consents to the
inclusion in the press release of the matters based on his information in the
form and context in which it appears.
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain. The person who arranged for the
release of this announcement on behalf of the Company was Gordon Stein,
Director and CFO.
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and
development company advancing next-generation sustainable lithium projects in
Chile for the EV transition. Proudly sustainable, committed to net-zero, our
mission is to produce material quantities of battery grade, carbon-neutral
lithium using sustainable Direct Lithium Extraction technology, powered by
clean energy, we plan to be the greenest lithium supplier to the EV market.
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. The Laguna Verde
and Francisco Basin projects are situated within basins entirely controlled
by the Company, which affords significant potential development and
operational advantages. Llamara is the Company's latest greenfield project,
which offers material potential upside at a low initial cost. All three
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 removes lithium from brine, with higher recoveries and
purities. The method offers short development lead times, low upfront capex,
with no extensive site construction and no evaporation pond development so
there is no water depletion from the aquifer or harm to the local
environment.
**ENDS**
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.)
Criteria JORC Code explanation Commentary
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 through 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
· In the first quarter of 2023 Electric Bailer samples were taken
from wells LV05, LV06 and LV02, after its 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. · From 2023 Standards, Duplicates and Blank samples (distilled
water) were randomly included in the batch in the rate of one every ten
· Measures taken to ensure that the sampling is representative of the original samples.
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 composed by standards, duplicates and blanks were
inserted in a rate of one each twenty original samples during year 2022.
· From year 2023, check samples composed by standards, duplicates
and blanks were inserted in a rate of one each ten original samples
· For the 2023 QA/QC process, a new set of standards were
internally prepared on the Copiapó warehouse installations, 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 include 04
laboratories (Ch. Feddersen Standards preparation, statistical analysis,
nominal valuation & laboratories analysis, February 2023)
· 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
· For the third TEM geophysical survey made in January 2023, 14 TEM
stations arranged in 2 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
· The equipment used for the Gravimetry geophysical survey was a
Scintrex portable digital model CG-5 Autograv, type "microgravity meter", with
a 0.001 mGal resolution with tidal, temperature, pressure and leveling
automatic correction system
· The topographic data measured during the gravimetry survey were
acquired with a double frequency differential positioning equipment, brand CHC
NAV, model I-80 GNSS, that consists in two synchronized equipments, one fix at
a known topographic station and the other, mobile through the surveyed
gravimetry stations
· January 2023 Gravimetry survey consists in the measure of 111
gravimetry stations with 200 m to 300 m separation, arranged in 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 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 or according to his instructions. 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
· Gravimetry stations were captured with a double frequency
differential positioning equipment, brand CHC NAV, model I-80 GNSS, that
consists of two synchronized pieces of equipment, one fix at a known
topographic station and the other, mobile through the surveyed gravimetry
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. · 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
· For the Gravimetry survey a 200 m to 300 m stations distance 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 · 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 kept 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.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · CleanTech Lithium holds in Laguna Verde 2,926 hectares of
agreements or material issues with third parties such as joint ventures, Exploitation Mining Concessions (Pertenencias) that cover the entire lagoon
partnerships, overriding royalties, native title interests, historical sites, area under an Option Agreement.6,913 hectares as Exploitation mining
wilderness or national park and environmental settings. concessions (Manifestaciones) and 11,400 hectares of Exploration Mining
Concessions outside the lagoon area that are in different process stages.
· 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 prohibition certificates in favour of Atacama Salt Lakes SpA were
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.
Azimuth 0°, dip -90°, Length 474 m
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
Azimuth 0°, dip -90°, Length 339.4 m
drill hole collar
· LV03 E549,980 N7,028,434 ELEV 4,402 m a.s.l.
o dip and azimuth of the hole
Azimuth 120°, dip -60°, Length 547.5 m
o down hole length and interception depth · LV04 E556,826 N7,024,390 ELEV 4,350 m a.s.l.
Azimuth 0°, dip -90°, Length 311 m
o hole length.
· LV05 E550,972 N7,027,908 ELEV 4,335 m a.s.l.
· If the exclusion of this information is justified on the basis that
Azimuth 0°, dip -90°, Length 434.6 m
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why · LV06 E555,912 N7,026,004 ELEV 4,335 m a.s.l.
this is the case.
Azimuth 0°, dip -90°, Length 405 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 grade · For the Sub Surface Resource no low grade cut-off or high grade
results and longer lengths of low grade results, the procedure used for such capping has been implemented
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, 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
· Pump Tests supports the bore field flow rates of 30L/s
Further work · The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· On the 2023 - 2024 drilling season, drill two diamond drillholes
· Diagrams clearly highlighting the areas of possible extensions, in the resource area. The objectives of these drillholes are to improve the
including the main geological interpretations and future drilling areas, resource calculation, evaluate and improve the Inferred resources located in
provided this information is not commercially sensitive. the deep depression in the middle of the lagoon, interpreted from the
gravimetry survey.
· Also, in the 2023 - 2024 drilling season, drill two diamond
drillholes in the North East extension area. The objectives of these
drillholes are to confirm the exploration hypothesis and upgrade the Inferred
resources in that area to Measured + Indicated.
· During the drilling of these holes, perform Lugueon type test in
several levels to study the host permeability characteristics, especially
through and between identified fracture and faults zones.
· In the same drilling season include a reverse flooded drillhole
in an area where the fresh water "contamination" is less probable. The
objective of this drillhole is to perform pump tests and obtain good quality
bulk samples for the future pilot plant
· Also, add a drillhole specially designed to perform injection
tests to study the reinjection characteristics of the tuffs and volcano
sedimentary host.
· Perform in all drilled holes a borehole geophysical campaign,
including Nuclear Magnetic Resonance, Conductivity, Temperature °C and Gamma
Ray to study the host permeability / porosity characteristics, design future
extraction wells characteristics and improve the resources confidence level.
· Execute a gravimetry survey in the North East extension area to
study the basement characteristics.
· Finally, build a new set of brine Standards from Laguna Verde
lagoon or other known brine source and calculate their Standard Nominal Grades
with a Round Robin process to be used in the related QA/QC process.
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 · 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 led 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, gravimetry (SRK, 2011) and the Laguna Verde
· The effect, if any, of alternative interpretations on Mineral gravimetry survey (Geodatos, January 2023). The lithological interpretation
Resource estimation. was confirmed by the January - May 2022 diamond drillhole campaign (LV01 to
LV04) and December 2022 - May 2023 drillhole campaign (LV05 & LV06).
· The use of geology in guiding and controlling Mineral Resource
estimation. · Low resistivities are associated with sediments saturated in brines,
but also with very fine sediments or clays. The direct relationship of the low
· The factors affecting continuity both of grade and geology. resistivity layer with the above hypersaline lagoon raise 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 · For the Surface Brine Resource 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 400 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
· Estimation of deleterious elements or other non-grade variables of September 2022 3D model (JORC Ch. Feddersen, September 2022), discarding the
economic significance (eg sulphur for acid mine drainage characterisation). resource volume in the LV04 area and adding an extension on the North East
Exploration area according the TEM profile surveyed in that zone (Geodatos,
· In the case of block model interpolation, the block size in relation January 2023).
to the average sample spacing and the search employed.
Later, the constructed 3D model was clipped above by the surface formed by the
following drillhole intercepts, that correspond to the brine aquifer ceiling:
· Any assumptions behind modelling of selective mining units.
LV01: 120 m, level 4,309 m.a.s.l.
· Any assumptions about correlation between variables.
LV02: 104.1 m, level 4,249.9 m.a.s.l.
· Description of how the geological interpretation was used to control
the resource estimates. LV03: 135 m, Level 4,309 m.a.s.l.
· Discussion of basis for using or not using grade cutting or capping. LV05: 57 m, level 4,278 m.a.s.l.
· The process of validation, the checking process used, the comparison LV06: 63.2 m, level 4,271.8 m.a.s.l.
of model data to drill hole data, and use of reconciliation data if available.
· Finally, the above clipped 3D model was clipped by below with the
interpreted resource basement surface, modelled using the LV01, LV02 and LV05
basement intercepts and the Laguna Verde gravimetry survey
· Two block models were constructed for resource calculation due
the different type of brine samples used for resource estimation, one above
the 4,112 m a.s.l. and the other, below 4,112 ma.s.l.
· The block model above level 4,112 m a.s.l. properties are:
Block size: 200 m x 200 m x 6 m.
Block Model Origin: 544,920.615 East, 7,026,284.04 North, Level 4,328 m a.s.l.
N° Columns: 94
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: 544,920.615 East, 7,026,284.04 North, Level 4,112 m
a.s.l..
N° Columns: 94
N° Rows: 40
N° Levels: 80
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 calculated block variables are:
· Lithium (Li)
· Magnesium (Mg)
· Potash (K)
· Boron (B)
· Sulfate (SO4)
· Calcium (Ca)
· Porosity
·
· The Sub-Surface Assay Resource Database was constructed according
the following considerations:
· LV04 geochemical samples were not used as their results indicate
that this drillhole is located completely outside the resource volume
· Packer samples from LV03 in the PQ diameter portion (above 4,112
m a.s.l.) were not used due reported packer problems and drilling mud
contamination during the samples extraction
· PVC casing samples were used from level around 4,309 m a.s.l.,
were brine aquifer ceiling was intercepted on drillhole LV01 down to 4,112 m
a.s.l.
· In LV01, PVC Casing Bailer samples were preferred against Suction
samples, as they present a better QA/QC performance and consistency with the
correspondent Packer samples
· LV02 Electric bailer samples were used from level 4,249.9 m
a.s.l. to 4,070 m a.s.l.
· LV05 Electric Bailer samples were used from level 4,278 m a.s.l.
to 3,912 m a.s.l.
· LV06 Electric Bailer samples were used from level 4,272 n a.s.l.
to 3,960 m a.s.l.
· Below level 4,112 m a.s.l. to the basement level at 3,955 m
a.s.l., Packer samples from LV01 and LV03 drillholes were used to calculate
Indicated Resources
· For the Effective Porosity estimation LV01, LV02, LV03 and LV04
data was used
· 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 · No cut-off grade was applied
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 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
· Pump Tests results supports the bore field flow rates of
30L/s
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 modelled by 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, LV02, LV05 and LV06 PVC Casing Bailer
samples were considered as MEASURED
Blocks estimated between 1,250 m to 3,000 m around LV01, LV02, LV05 and LV06
PVC Casing 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 1,250 m around LV02, LV05 and LV06 PVC Casing Bailer
samples were considered as MEASURED
Blocks estimated between 1,250 m to 3,000 m around LV02, LV05 and LV06 PVC
Casing Bailer samples were considered as INDICATED
As the Packer samples have a wide sampling support (18 m) and no standards
were inserted to check their accuracy, these samples will generate only
Indicated and not Measured resources so, Blocks estimated at 3,000 m around
LV01 and LV03 Packer samples 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 estimates. · 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.
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