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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Cleantech Lithium Plc | LSE:CTL | London | Ordinary Share | JE00BPCP3Z37 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.08 | -0.51% | 15.50 | 15.00 | 16.00 | 15.50 | 15.50 | 15.50 | 167,940 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Chem,fertlizer Minrl Mng,nec | 0 | -3.8M | -0.0360 | -4.31 | 16.38M |
From Apr 2022 to Apr 2024
TIDMCTL
RNS Number : 7324L
CleanTech Lithium PLC
05 January 2023
5 January 2023
CleanTech Lithium PLC ("CleanTech Lithium" or the "Company")
Scoping Study Confirms Potential of Laguna Verde as a Major New Sustainable
Lithium Supplier with Robust Economics:
Post-tax NPV(8) of US$1.83 billion and IRR of 45.1%
CleanTech Lithium PLC (AIM:CTL), an exploration and development company, advancing the next generation of sustainable lithium projects in Chile, announces the results of a recently completed Scoping Study for the Laguna Verde Project, which confirms the project's outstanding economics and ESG credentials.
Highlights:
-- Supports the potential for Laguna Verde to become a major supplier of battery grade lithium to European and US markets based on sustainable direct lithium extraction ("DLE") technology
-- Based on annual production of 20,000 tonnes of battery grade lithium carbonate for an operational life of 30 years based on Measured + Indicated resource
-- Calculates accumulated net cashflows (post-tax and royalties) of US$6.3 billion to be generated over the operational life with low operating cost of US$3,875 per tonne of lithium carbonate
-- Estimated capital expenditure of US$383.6m, based on DLE plant using SunResin Materials existing DLE technology
-- Attractive economics with post-tax NPV of US$1.83 billion using a discount rate of 8%, post-tax IRR of 45.1% and a payback period of 1 year and 8 months - based on a long-term lithium carbonate price of US$22,500 per tonne from 2027
-- Industry leading ESG credentials, a critical advantage for the EU market, based on utilising DLE which returns spent brine to the basin aquifers, and renewable energy for processing power via connecting with the Chilean grid and its abundant renewable energy supply
-- The report assumes commencement of production in 2026, Company Board and management continue to target late 2025
-- Pre-Feasibility Study ("PFS") to commence immediately, targeted for completion in 2H 2023. The PFS will also address conversion of lithium carbonate to potentially more attractive lithium hydroxide, and
-- The economics represent only one of CleanTech Lithium's projects, the Francisco Basin project provides further upside
Commenting, Aldo Boitano, Chief Executive Officer, of Cleantech Lithium PLC, said:
"The Scoping Study provides added confidence in the robust economics of the Laguna Verde project; based on low operating and capital costs, with a post-tax NPV of US$1.83 billion and IRR of 45.1%, and a payback period of 1 year and 8 months. The study further advances the process and technical design concept for the project, with strong ESG principles incorporated at each step. With the completion of this study, the Company is proceeding to a Pre-Feasibility Study (PFS) for the project. The PFS will utilise technical data generated by our planned pilot plant, the DLE unit of which was recently ordered from SunResin, to produce a high level of process design verification for a PFS level study.
"This Scoping Study marks a major milestone for the Company and I would like to take this opportunity to thank the Scoping Study consultant, Chilean based lithium sector experts Ad-Infinitum, as well as our technical team for their hard work in completing the study. The Scoping Study outlines a plan to produce battery-grade lithium with a low environmental footprint, which positions the Company extremely well to supply the EU and US markets.
"Ad-Infinitum have already commenced work on the Francisco Basin Scoping Study and our Board is hopeful that the economics and ESG credentials prove to be as attractive as we've seen for Laguna Verde. We expect to announce the results of that scoping study in H1 2023."
Further Information
Summary of Key Scoping Study Outcomes
A summary of the outcomes for key operational and economic analysis metrics derived from the completion of the scoping study are presented in the table below.
Hot Features
Premium
Key Operating Metrics Unit Study Outcome
Tonnes per
Production Rate of Lithium Carbonate annum 20,000
------------- ----------------
Operational Life Years 30
------------- ----------------
Thousand
Resource (Measured + Indicated) tonnes 802.6
------------- ----------------
Construction Period Years 1.5
------------- ----------------
Recovery rate - Direct Lithium Extraction % 90.4
------------- ----------------
Recovery rate - Concentration stages
& chemical plant % 94.2
------------- ----------------
Recovery rate - Total % 85.2
Key Financial Metrics
Capital Cost (including 10% contingency) US$ Million 383.6
------------- ----------------
US$ / tonne
Operating Cost Li2CO3 3,875
------------- ----------------
Lithium Price (Lithium Carbonate)) $US/tonne Forecast Curve
------------- ----------------
Accumulated Net Cashflows Over Operational
Life US$ Billion 6.3
------------- ----------------
Payback Period Years 1 year 8 months
------------- ----------------
IRR Post-Tax % 45.1
------------- ----------------
NPV Post-Tax (Discount Rate = 8%) US$ Billion 1.83
------------- ----------------
NPV Post-Tax (Discount Rate = 10%)
- Sensitivity Analysis US$ Billion 1.43
------------- ----------------
Information on Study and Contributors
The study was undertaken by Ad-Infinitum, a Chilean engineering services company/technical consultant with over 30 years of experience in the lithium sector with clients including SQM, Albemarle and Galan Lithium. Ad-Infinitum specialise in processes and operations involving the processing of brines and minerals that contain Lithium, Potassium, Sulfate, Nitrates and other elements; and provide specialist technical solutions that contribute to the development of projects in all their stages, as well as the improvement of operations. Since 2014, Ad-Infinitum has worked on lithium production processes from brine on different projects in Chile, Argentina, China, Korea and elsewhere.
The capital cost estimates for the DLE plant were contributed by SunResin, the leader in commercial scale DLE plants. The lithium price cost curve estimate used in the study is based on estimates by Canaccord Genuity, a market leading broker with considerable experience in the lithium sector. The key study contributors are further summarised in the table below.
The Mineral Resource underpinning the production target is based on the Laguna Verde updated JORC resource estimate, reported by the Company in September 2022 and limited to the Measured and Indicated component of the sub-surface resource estimate. This estimate was prepared by an Independent Competent Person, Christian Feddersen, in accordance with the requirements of the JORC Code.
Scope Contributor
Study Manager Ad Infinitum
--------------------------------
Direct Lithium Extraction
Plant SunResin
--------------------------------
Metallurgical Test-Work Beyond Lithium
--------------------------------
Mineral Resource Estimation Christian Feddersen
--------------------------------
Geological Consultant Geomin
--------------------------------
Land Title Juan Bedmar e Hijo Ltda
--------------------------------
Environmental, Social and CYMA Engineering and Management
Community Impact Ltd
--------------------------------
Canaccord Genuity estimates,
Lithium Price Forecast August 2022
--------------------------------
Scoping Study Summary
Project Description and Geology
The Laguna Verde project is located in the northern Atacama Region of Chile at an altitude of over 4,300m above sea level. The project area is located 275km east of the capital city of the region, Copiapó , and is adjacent to the paved highway Route 31, which crosses the Argentina border 23km east of the project. The project is within a closed hydrographic basin of approximately 1,075km(2) , surrounded by a series of volcanoes, and features an active geothermal system with surface manifestations. Figure 1, below, provides a regional map, which additionally shows that Laguna Verde is approximately 100km from CleanTech Lithium's second project, Francisco Basin.
Figure 1: Regional Map of Laguna Verde Project
Mineral Property and Title
Under Chilean law, exploration and exploitation of mineral resources are granted through mining concessions. CleanTech Lithium, via its 100% owned subsidiary Atacama Salt Lakes SpA, owns either directly or via an exclusive purchase option a total of 52 exploitation and exploration concessions in the Laguna Verde Project with a total area of 107km(2) . This comprises 23 mining exploitation concessions, held via an option agreement, with a total area of 29km(2) , and 29 mining exploration concessions which are held directly and have a total area of 78km(2) . The map of concessions is shown in Figure 2.
Under Chilean law, the exploration and exploitation of lithium can be executed by a Special Operation Contract for Lithium (CEOL), under the terms and conditions established by the President of the Republic. The Study assumes the Company intends to submit a CEOL application for the Laguna Verde Project in the coming months.
Figure 2: Tenement map of Laguna Verde Project Mining Concessions
Mineral Resource Estimate
An updated JORC compliant resource estimate for the Laguna Verde project of 1.51 million tonnes of LCE was published on 13 September 2022. This estimate was based on the sub-surface resources targeted by a resource drill programme undertaken in January - May 2022. A total of four wells, designated LV01 - LV04, were completed during the programme with recorded drilling depths and aquifer thickness as per Table 1 below.
Well Code Drilling Depth Aquifer Thickness
LV01 463m 337m
--------------- ------------------
LV02 290m 235m
--------------- ------------------
LV03 431m 314m
--------------- ------------------
LV04 320m 220m
--------------- ------------------
Table 1: Laguna Verde Resource Drilling - Well Depth and Aquifer Thickness
The resource estimate is classified in the categories of 'Measured + Indicated' and 'Inferred'. Of the total 1.51 million tonne resource, 0.8 million tonnes are classified in the Measured and Indicated categories, shown in Table 2 below, which has been used in the Scoping Study as the basis for estimating the 20,000 tonne per annum production rate over an operational life of 30 years.
Total Resource Measured + Indicated
Total Effective Volume m(3) 731,655,164
------- --------------
Average Grade Li mg/l 206.08
------- --------------
Li Mass tonne 150,780
------- --------------
Measured + Indicated Resource
(LCE) tonne 802,602
------- --------------
Total Resource Measured + Indicated + Inferred
Total Effective Volume m(3) 1,381,331,794
------- --------------
Average Grade Li mg/l 205.62
------- --------------
Li Mass tonne 284,028
------- --------------
Measured + Indicated + Inferred
Resource (LCE) tonne 1,511,880
------- --------------
Table 2: Laguna Verde JORC Resource Estimate
Mining Method
Lithium enriched brine occurring within the porous sub-surface sediments is to be extracted utilising a well field located around the Laguna Verde perimeter. A total of twenty-three extractions wells have been considered in the study, with the area of the well field shown in red in Figure 3. The extracted brine will be transferred to a tank to be mixed prior to being fed into the first stage of plant processing, which is the DLE adsorption columns. The spent brine from the adsorption process, which is the brine with lithium removed, will be reinjected into the salar basin through deep wells, in areas where the mineral resource will not be affected by dilution. The area considered in the Scoping Study for reinjection wells is shown in Figure 3. Further hydrogeological work is required to develop the extraction and reinjection model for the production phase of the project.
Figure 3: Scoping Study Wellfield Infrastructure Layout Plan
Process Recovery Method
The Company has carried out a series of laboratory and bench scale tests to trial the processing of brine from the Laguna Verde Project and confirm the feasibility of obtaining battery grade lithium carbonate. In 1H 2022 trials on a 2,000L brine sample were undertaken by Beyond Lithium, a Chilean-Argentinian lithium processing consultant, to produce 1kg of battery grade lithium carbonate at its facilities in Salta, Argentina.
The test work showed that the DLE process was efficient in capturing the Li ion from the brine and also selective in rejecting major contaminants such as magnesium. The lithium in eluate from the DLE was 4.6 times that of the head brine whilst 97.5% of the magnesium was rejected into the spent brine. DLE is primarily a cleaning stage and subsequent concentration stages increase the lithium concentration to about 1% Li. The main impurities of magnesium and calcium were then almost completely removed by precipitating with a soda ash/sodium hydroxide solution. Traces of these together with boron are removed using ion exchange and then carbonation of the solution with soda ash produces a lithium carbonate precipitate.
This DLE based process successfully produced a 1kg sample of high-purity lithium carbonate which was analysed by the Dorfner Anzaplan Laboratory in Germany, confirming very low impurities and a Li(2) CO(3) grade >99.9%, exceeding the benchmark for battery grade lithium of 99.5% Li(2) CO(3) . This was announced to the market by the Company on 8 June 2022.
Brine processing test design work has progressed emphasising the minimisation of environmental impact, waste disposal and water consumption to ensure high ESG standards for the project. The process design, based on test work completed, can be described broadly in five stages to produce lithium carbonate as labelled in Figure 4 below, which provides an overview diagram of the process stages. As process work is further advanced the option of producing lithium hydroxide, either via conversion of lithium carbonate or an alternative process route will be further evaluated.
Figure 4: Process Stages
Ad-Infinitum modelled the production process using SysCAD simulation software and a thermodynamic model. For modelling of the DLE process the data from completed test work and a comparison with projects utilising a similar process were used. Process simulation provided mass and volume values for all streams of the modelled process.
The overall recovery rate used in the study of 85.2% is based on the DLE stage achieving a 90.4% recovery. Treatment of the mother liquor after carbonation to precipitate NaCI and then recirculation of the concentrated solution to the first purification stage allows for the maximisation of process water recovery and overall lithium recovery. Table 3, below, provides the modelled lithium recovery and loss according to the process stage.
Table 3: Overall Process Recovery
Based on the modelling, the stages with the lowest recovery are the direct extraction and lithium carbonation processes. These process stages will be optimised in the piloting stage. The overall balance of the process for the production rate of 20,000 tonnes of Li(2) CO(3) per year is shown in Table 4 below.
Stream Mass (tonne/yr) Distribution
----------------------- ----------------
Inlet Well brine 22,659,337 Excl.
----------------------- ---------------- -------------
Na(2) CO(3) to
Mg 946 2.0%
-------------------------------- ---------------- -------------
Na(2) CO(3) to
Carb. Li 33,851 71.4%
-------------------------------- ---------------- -------------
NaOH 1,419 3.0%
-------------------------------- ---------------- -------------
HCl 10,799 22.8%
-------------------------------- ---------------- -------------
CaCl(2) 394 0.8%
-------------------------------- ---------------- -------------
Sum 22,706,747
-------------------------------- ---------------- -------------
Outlet Spent brine 22,529,091 Excl.
----------------------- ---------------- -------------
Mg (OH)(2) , CaCO(3)
slurry 8,642 4.9%
-------------------------------- ---------------- -------------
Boron solution 1,960 1.1%
-------------------------------- ---------------- -------------
Mg, Ca, IX solution 693 0.4%
-------------------------------- ---------------- -------------
NaCl from Evaporator 117,905 66.4%
-------------------------------- ---------------- -------------
Out. Dryer (moisture) 22,880 12.9%
-------------------------------- ---------------- -------------
CO2 from reaction 5,576 3.1%
-------------------------------- ---------------- -------------
Li(2) CO(3) Product 20,000 11.3%
-------------------------------- ---------------- -------------
Sum 22,706,747
-------------------------------- ---------------- -------------
Table 4: Summary Mass Balance for 20,000 tpa lithium carbonate production rate
The largest waste product stream is NaCl. This can be used as a construction material for base platforms and road construction/improvement or combined with spent brine and reinjected to the aquifer without changing the original brine chemistry.
Process Work Next Stage - Pilot Plant Including Lithium Hydroxide Evaluation
For the development of more advanced engineering studies the construction and operation of a pilot plant is highly recommended by Ad-Infinitum to validate and adjust, if necessary, the process design. The Company plans to construct a pilot plant with the capacity to produce 1 tonne per month of battery-grade lithium carbonate and lithium hydroxide. In June 2022, Clean Tech Lithium signed a Memorandum of Understanding (MOU) for cooperation with SunResin, a leader in the deployment of commercial-scale DLE plants. The DLE unit for the pilot plant was ordered from SunResin's Belgium facilities in December 2022 and its assembly and commissioning are scheduled for the end of the second quarter of 2023. The downstream processing stages for the pilot plant to produce lithium battery products are in the final stages of specification.
The pilot plant will be designed to test the direct extraction process and different configurations for the removal of contaminants and carbonation. Solutions will be recycled to optimize the consumption of water, reagents and solutions. Figure 5, below, describes the stages in the planned pilot plant to produce lithium carbonate.
Figure 5: Pilot Plant Block Diagram
Based on long-term industry trends, lithium hydroxide is expected to experience higher demand growth than lithium carbonate. Lithium hydroxide can be conventionally obtained by converting the lithium carbonate produced in the first stage of the process with lime. This will be tested in the pilot plant. A number of other processes to produce lithium hydroxide from brines are in development that will also be considered.
Project infrastructure - Power and Water Supply
The Laguna Verde Project is located 275 km from Copiapó, in a region where the mining sector is the main driver of the economy, which allows access to mining services and specialised infrastructure. The port of Caldera, 340 km away by road, is a point of entry for supplies and an outlet for products with excellent loading facilities for general cargo and specialty commodities.
The study notes that the Laguna Verde project will use renewable energy for power supply through contracting a supplier of renewable energy via a Power Purchase Agreement (PPA). The main electricity transmission line in the area is the Greater North Interconnected System (SING) and a connected line supplies a substation located at the La Coipa Mine, approximately 100km from Laguna Verde (Fig. 6). The study notes that c urrently, 60% of the installed capacity in Chile is renewable energy, such as hydropower, solar-thermal, geothermal, wind, and photovoltaic solar (National Electric Authority, Energy Report, historical CEN installed capacity by technology, October 2022), making such a PPA feasible.
Figure 6: Regional Electricity Transmission Map
The project will have installed power capacity of 23.2MW and will require a 110KV high voltage line of approximately 100km to be extended to the east from La Coipa, parallel to the Route 31 highway, to a new substation at Laguna Verde, from where it is distributed to the site. Total energy consumption is estimated at 170.3GWh annually, with the breakdown by facility provided in Table 5.
Plant/Infrastructure Energy Consumption Facility (GWh) Wells and transmission to tanks 15.4 DEL and Concentration Plant 103.5 Chemical Plant 22.8 Services & Camp 27.9 Transmission losses 0.7 Total Energy Consumption 170.3
Table 5: Project Annual Energy Consumption Breakdown by Facility
Water supply for the process is to come from wells drilled within the Laguna Verde basin and from the recovery of water in the concentration stages of processing. Purified water will be obtained from the condensates in the forced evaporation and mother liquor treatment stages. The consumption of process water considers the recovery of 74% of the water used for the elution washing process in the DLE stage and for preparing process reagents that require ultra-pure water. The water recovery stages through reverse osmosis and the condensates from the concentration stages reduce the water requirement such that total water supply of 66 l/s will be required in the production phase, as shown in Table 6.
M3/d l/s
------- ------
Elution DLE 8,337 96.5
------- ------
Reagents prep./Cake washing 566 6.6
------- ------
Water recovered in processing -6,599 -76.4
------- ------
Other consumption 20 0.2
------- ------
Water required 2,324 26.9
------- ------
Reverse osmosis water recovery rate 41%
------------------------------------- ---------------
Water required from well field 5,711 66.1
------------------------------------- ------- ------
Table 6: Process Water Supply Metrics
Capital Expenditure
Capital expenditure (CAPEX) estimates are based on an annual production of 20,000 tonnes of lithium carbonate. The cost of the equipment has been obtained by Ad-Infinitum from a combination of data from similar projects and information from supplier quotes. A summary of the CAPEX by major areas is provided in Table 7. This estimate was made based on figures for the fourth quarter of 2022 with no projected inflation adjustment. The estimated accuracy is within a range of -15%/+30%. Maintenance CAPEX is estimated at a total of US$ 63.3 million over the 30-year evaluation period, involving approximately US$12 million CAPEX once every 5 years.
Area Description US$
000
---------------------------
1000 Well Field 57,145
3000 Plant 226,654
3100-3300 DLE and Reverse Osmosis 189,064
3400-3800 Chemical Plant 33,025
Packaging, Storage and
3900 Handling 4,566
4000 Services 20,710
------------ --------------------------- --------
Total Direct Cost 304,509
Indirect Cost 44,259
Contingencies (10%) 34,877
------------ --------------------------- --------
Total CAPEX 383,644
------------ --------------------------- --------
Table 7: Capital Expenditure Summary Breakdown
The Well Field CAPEX item includes brine extraction wells, spent brine reinjection wells, and water extraction wells as shown in Table 8 below. Twenty-three brine extraction wells have been assumed at an average depth of 350 metres with each well estimated at an average flow rate of 30 L/s. Sixteen spent brine reinjection wells were assumed with spent brine discharged in two reinjection fields, requiring two main pumps. Two wells have been assumed for process water supply, with their respective pumps and pipes transporting the water to the lithium carbonate plant area.
Area Description US$
000
-----------------------
1100 Brine extraction wells 47,429
1200 Brine reinjection well 9,155
1300 Water wells 560
------------ ----------------------- ---------
Total Wells 57,145
------------ ----------------------- ---------
Table 8: Well Field Capital Expenditure Breakdown
The Plant CAPEX estimate is made up of the DLE plant, based on a quotation received from SunResin, and a Reverse Osmosis and Chemical plant, based on data from suppliers and developers of the required equipment calculated using Ad-Infinitum's database. Table 9 shows a further breakdown of the DLE and Reverse Osmosis estimates.
Area Description US$
000
----------------
3100 DLE 109,941
3200 Reverse Osmosis 79,123
Total 189,064
------ ---------------- --------
Table 9: Plant Capital Expenditure Breakdown
The Services CAPEX estimate of US$20.7 million includes all the satellite activities that are essential for the operation of the wells and the lithium carbonate plant: electricity supply, boilers, preparation of reagents, water treatment, and fire-fighting system, among others.
The Indirect Costs estimate of US$44.3 million includes all other expenses incurred during the construction period. The Construction and Operation Camp, and Polyclinic, are the major expense, followed by the Vendor's technical assistance.
Finally, a 10% Contingency was applied to all CAPEX items by Ad-Infinitum in accordance with industry practice.
Operating Expenditure
Estimates are based on the design of the production process, considering yields and estimated recoveries, and the estimated consumption and prices for the main reagents used. The estimates of expenses, prices and labour are based on Ad-Infinitum's database for the costs of similar operations in Chile, as of September 2022. Operating expenses are summarised in Table 10.
Operating Expenditure US$/tonne Annual Total
LCE US$ mn
Reagents 1,215 24,304
Water 208 4,169
Energy 1,224 24,484
Manpower 264 5,280
Transport 200 3,997
Catering & Camp
Services 134 2,685
Maintenance 417 8,342
Total Direct Costs 3,663 73,262
---------- -------------
SGA 212 4,238
Total OPEX 3,875 77,499
---------- -------------
Table 10: Operating Expenditure Summary Breakdown
Energy and Reagents are the two largest items representing 32% and 31% of total operating costs. The unit cost for energy is US$0.1437/kWh consistent with the pricing of similar supply contracts in the Chilean market. The Reagent cost is dominated by Soda Ash used in the Carbonation process, which comprises 57% of the total cost for reagents.
Manpower costs include an estimated total operational manpower of 163 people with an additional 59 people providing G&A services - totalling 222 personnel supporting the operation of the project.
Transportation assumes land transportation of the product packed in 1-tonne capacity bulk bags by ramp truck from the plant in Laguna Verde, via Copiapó , to the port at Caldera from where it is shipped in containers to its destination in the EU and/or the USA.
Cash flow and Economic analysis
The economic analysis carried out in the study included the following basic assumptions:
CAPEX Schedule 2024 - US$268.6 million
2025 - US$115.1 million
Total - US$383.6 million
Production Schedule Annual production of 20,000 tonnes per
annum
Production ramp-up projected at 80% in
Grade Year 1 with full capacity being achieved
in Year 2.
65% of initial production will be battery
grade, reaching 100% in Year 2
-------------- ------------------------------------------------------------------
Lithium Carbonate Annual Prices 2025 - US$30,000 per tonne
Sales Prices 2026 - US$30,000 per tonne
2027 - US$22,500 per tonne
Long-term - US$22,500 per tonne
-------------- ------------------------------------------------------------------
Opex Cost per US$3,875
tonne
-------------- ------------------------------------------------------------------
Financing Project Analysis assumes entire project funded
Funding by the Company from its own capital
-------------- ------------------------------------------------------------------
Taxes & Royalties Corporate First Category Tax as currently defined
Tax in the Chilean tax regime for mining industries
- 27% on net profits (after royalties)
Royalties Specific payments to the Chile State -
(CEOL) Based on the Companies CEOL applications
made in early 2022:
* Specific quarterly payment - 3% of revenues
Withholding
Tax
* R&D expenses - 1.5% of revenues
* Annual Operating Margin Payment - a progressive table
which increases from 7% to a maximum rate of 16% when
the operating margin reaches 85%. This is the same
table as included on page 47 of the Company's
Admission Document for its IPO on the London Stock
Exchange in March 2022.
With foreign companies or investors, the
additional tax that companies must pay
when distributing their profits and dividends
overseas is 35%, in which case, the First
Category Tax operates as a credit. In the
study, the tax rate of 27% is used as the
applicable rate on a project economics
basis. Study also assumes CleanTech Lithium
will establish tax arrangements in Chile
and elsewhere to manage the additional
8% net withholding tax which may be payable
in the event that dividends are distributed
outside Chile.
-------------- ------------------------------------------------------------------
Table 11: Key Assumptions in Economic Analysis of Laguna Verde project
Cashflows Analysis
The Scoping Study confirms, based on the assumptions, very strong cashflows from operations from an early stage as shown in Table 12 below.
Table 12: Cashflow Forecast Summary
Economic Evaluation Results:
Base Case: Based on the post-tax cashflows shown in Table 12 above, the following economic evaluation results were obtained:
NPV(8) US$ 1.834 billion
NPV(10) US$1.427 billion
--------------------
IRR 45.1%
--------------------
Payback period 1 year and 8 months
--------------------
Table 13: Economic Evaluation Results after taxes
Sensitivity Analysis
A sensitivity analysis was undertaken for the three parameters with the greatest impact on the calculation of the Present Value of the project and the Internal Rate of Return. This analysis was carried out for variations of -25% and 25% regarding the Base Case, with the results being shown in Table 14 below. These sensitivities show the robust economics of the project, even in downside scenarios. With a current international lithium carbonate sales price in excess of US$70,000 per tonne, there is also large upside potential which is not captured in this analysis.
NPV After taxes, US$ million NPV, Var %
Variable 75% 100% 125% 75% 100% 125%
---------- ---------- --------- ----- ----- -----
CAPEX MM$ 1,902 1,834 1,767 104% 100% 96%
---------- ---------- --------- ----- ----- -----
OPEX M$/tonne 1,933 1,834 1,733 105% 100% 94%
---------- ---------- ---------- --------- ----- ----- -----
Price M$/tonne 1,205 1,834 2,456 66% 100% 134%
---------- ---------- ---------- --------- ----- ----- -----
IRR After taxes, % IRR, Var %
Variable 75% 100% 125% 75% 100% 125%
---------- ---------- --------- ----- ----- -----
CAPEX MM$ 55.6% 45.1% 38.1% 123% 100% 85%
---------- ---------- --------- ----- ----- -----
OPEX M$/tonne 46.8% 45.1% 43.3% 104% 100% 96%
---------- ---------- ---------- --------- ----- ----- -----
Price M$/tonne 34.4% 45.1% 54.6% 76% 100% 121%
---------- ---------- ---------- --------- ----- ----- -----
Table 14: NPV and IRR sensitivities over Capex, Opex and Sales Price
Environmental and Social Licence Considerations
The project does not fall within a designated environmental protection area, with fauna being scarce due to the high aridity and extreme climate at the altitude of 4,300m. The study confirms that the Company is currently developing an environmental baseline study, as well as compiling information for the environmental impact assessment (EIS) which will be necessary for the production phase of the project. The Company is supported by CYMA Engineering and Management, which specialises in environmental studies and permitting.
For the purpose of assessing possible impacts CleanTech Lithium plans to develop close relationships with project stakeholders. The Company has recently opened an office in Copiapo and is developing an Early Engagement Plan (PACA) that aims to keep an open communication channel with relevant community bodies and organisations and allows for a continuous assessment of the social impact of the project.
Interpretation and Conclusions
Laguna Verde is classified as an immature clastic salt lake basin. The total resource for the Project is estimated at 1,511,880 tonnes of LCE, with 802,602 tonnes being in the Measured + Indicated resource category. The average lithium value is 205 mg/l Lithium.
Public studies of the lithium market indicate strong demand and sustained high prices during the evaluation period. The demand for electric vehicles continues to increase, and every day more countries declare a ban on the sale of combustion vehicles in the following years, ensuring the elevated levels of demand for lithium.
Chile is one of the few countries in the world where there are lithium deposits in continental brines, so the interest and supply requirements for this material should be of national interest.
The offer of a project with low environmental impact is in line with current requirements, so the environmental procedures should be well considered. At this point, it is necessary to have more information on the reinjection system and the development of a hydrogeological model that confirms the low impact on groundwater and its null impact on lake surfaces.
The exploitation cost, according to what is indicated in the scoping study (-15%/+35% accuracy), of US$ 3,875 per tonne, is a competitive cost for the projected prices, even in comparison with the costs of projects from continental brines and with traditional processes (solar evaporation).
The capital cost of the project is estimated (-15%/+ 30%) at US$ 384 million, considering 10% contingencies.
The economic analysis of the project, after taxes, gives a Net Present Value of US$ 1.83 billion, using a discount rate of 8%, and giving an internal rate of return of 45.1%. The term to recover the investment (payback period) is 1 year and 8 months.
The sensitivity analysis of the economic evaluation model shows that the factor that most impacts the Present Value of the project, for the same variations, is the Price factor. And with respect to IRR, both the Price and Capex are the most influential parameters.
Based on the results of the initial explorations and the future exploration program, it is concluded that the Laguna Verde Project justifies continuing its development to determine if the lithium resource can be turned into a reserve, in terms of economic and technical aspects, and confirm the feasibility of its production on a pilot scale.
For further information contact:
CleanTech Lithium PLC
Aldo Boitano/Gordon Stein Jersey office: +44 (0)
1534 668 321
Chile office: +562-32239222
Or via Celicourt
Celicourt Communications +44 (0) 20 8434 2754
Felicity Winkles/Philip Dennis/Ali cleantech@celicourt.uk
AlQahtani
Dr. Reuter Investor Relations
Dr. Eva Reuter
+49 69 1532 5857
Beaumont Cornish Limited
(Nominated Adviser)
Roland Cornish +44 (0) 207 628 3396
Fox-Davies Capital Limited
(Joint Broker) +44 20 3884 8450
Daniel Fox-Davies daniel@fox-davies.com
Canaccord Genuity Limited +44 (0) 207 523 4680
(Joint Broker)
James Asensio
Gordon Hamilton
Competent Persons
The following professionals act as qualified persons, as defined in the AIM Note for Mining, Oil and Gas Companies (June 2009:
-- Christian Gert Feddersen Welkner: Geologist and Master of Science, major in geology (University of Chile). With more than 20 years of experience, Mr Feddersen is a qualified person independent of the company and a member of the Chile Mining Resources and Reserves Competence Qualifying Commission, a "Recognised Professional Organisation" (OPR). He is registered with No. 132 in the public registry of Competent Persons in Mineral Resources and Reserves, under the Law of Competent Persons and its Regulations in force in Chile. Mr Feddersen, who has reviewed and approved the geological information included in the announcement, has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken and qualifies as a competent person, as defined in the JORC Code.
-- Marcelo Bravo: Chemical Engineer (Universidad Católica del Norte), has a Master's Degree in Engineering Sciences major in Mineral Processing, Universidad de Antofagasta. He currently works as a Senior Process Consulting Engineer at the Ad-Infinitum company. Mr Bravo has relevant experience in researching and developing potassium, lithium carbonate, and solar evapo-concentration design processes in Chile, Argentina, and Bolivia. Mr Bravo, who has reviewed and approved the information contained in the chapters relevant to his expertise contained in this announcement, is registered with No. 412 in the public registry of Competent Persons in Mining Resources and Reserves per the Law of Persons Competent and its Regulations in force in Chile. Mr Bravo has sufficient experience relevant to the metallurgical tests and the type of subsequent processing of the extracted brines under consideration and to the activity being carried out to qualify as a competent person, as defined in the JORC Code.
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.
Cautionary Statement
As discussed below, the primary purpose of the Scoping Study is to establish whether or not to proceed to a Pre-Feasibility Study ("PFS") and has been prepared to an accuracy level of +/-30%. The Scoping Study results should not be considered a profit forecast or production forecast. The Company advises that the Scoping Study referred to in this announcement is based on lower-level technical and preliminary economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. The Production Target referred to in this announcement is solely based on the Measured and Indicated Mineral Resources for the Laguna Verde project.
Important Information for this Announcement
The Scoping Study has been prepared and reported in accordance with the requirements of the JORC Code (2012). The primary purpose of the Scoping Study is to establish whether or not to proceed to a Pre-Feasibility Study ("PFS") and has been prepared to an accuracy level of +/-30%, the Scoping Study results should not be considered a profit forecast or production forecast. As defined by the JORC Code, a "Scoping Study is an order of magnitude technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments of realistic assumed Modifying Factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be justified."
The Modifying Factors included in the JORC Code have been assessed as part of the Scoping Study, including mining (brine extraction), processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and government factors. The Company has received advice from appropriate experts when assessing each Modifying Factor.
Following an assessment of the results of the Scoping Study, the Company has formed the view that a PFS is justified for the Laguna Verde project, which it will now commence. The PFS will provide the Company with a more comprehensive assessment of a range of options for the technical and economic viability of the Laguna Verde project.
The Company has concluded it has a reasonable basis for providing any of the forward-looking statements included in this announcement and believes that it has a reasonable basis to expect that the Company will be able to fund its stated objective of completing a PFS for the Laguna Verde project. All material assumptions on which the forecast financial information is based are set out in this announcement.
Some of the statements appearing in this announcement may be in the nature of "forward-looking statements" which include all statements other than statements of historical fact, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this document. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.
Notes
CleanTech Lithium (AIM:CTL) is an exploration and development company, advancing the next generation of sustainable lithium projects in Chile. The Company's mission is to produce material quantities of battery grade lithium by 2025, with near zero carbon emissions and low environmental impact , offering the EU EV market a green lithium supply solution.
CleanTech Lithium has two prospective lithium projects - Laguna Verde and Francisco Basin projects located in the l ithium triangle, the world's centre for battery grade lithium production . They are situated within basins entirely controlled by the Company, which affords significant potential development and operational advantages. The projects have direct access to excellent infrastructure and renewable power. In addition, the Company has applied for a further 119 exploration licences at Llamara, as a low cost and commitment greenfield project to complement the existing more advanced projects.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction. Direct Lithium Extraction is a transformative technology which only removes lithium from brine, with higher recoveries and purities. The method offers short development lead times, low upfront capex, with no extensive site construction and no evaporation pond development so there is no water depletion from the aquifer or harm to the local environment.
**S**
List of Abbreviations used in Scoping Study
% percentage m/d metres per day
degC temperature in degrees mg milligram
Celsius
--------------------------------- -------------------------------
3D three dimensional Mg magnesium
--------------------------------- -------------------------------
m.a.s.l. meters above sea level mg/L milligrams per litre
--------------------------------- -------------------------------
ALS ALS Life Sciences Chile mL millilitre
--------------------------------- -------------------------------
B boron mm millimetre
--------------------------------- -------------------------------
BV bed volume mm/year millimetres per year
--------------------------------- -------------------------------
Ca calcium US$MN million dollars
--------------------------------- -------------------------------
CaCl(2) calcium chloride MVR mechanical vapor recompression
--------------------------------- -------------------------------
CaCO calcium carbonate MW megawatt
(3)
--------------------------------- -------------------------------
Ca(OH) calcium hydroxide MWh megawatt hour
(2)
--------------------------------- -------------------------------
CAPEX Capital Cost Estimates Na sodium
--------------------------------- -------------------------------
CCHEN Chilean National Nuclear Na(2) CO(3) sodium carbonate (soda
Commission ash)
--------------------------------- -------------------------------
CEOL Special Operation Contracts NaCl halite
for Lithium
--------------------------------- -------------------------------
Cl chlorine NaOH sodium hydroxide
--------------------------------- -------------------------------
CODELCO National Copper Corporation NF nanofiltration
--------------------------------- -------------------------------
CONAMA National Environment Committee NFB nanofiltration for
Boron
--------------------------------- -------------------------------
CORFO Development Corporation No. number
--------------------------------- -------------------------------
CP competent person NI National Instrument
--------------------------------- -------------------------------
CPR competent person report NPV Net Present Value
--------------------------------- -------------------------------
CTL CleanTech Lithium OPEX Operating Cost Estimates
--------------------------------- -------------------------------
CYMA engineering and management Pe effective porosity
company
--------------------------------- -------------------------------
cm centimetre pH The measure of acidity
or alkalinity
--------------------------------- -------------------------------
cm(3) cubic centimetres PPA power purchase agreement
--------------------------------- -------------------------------
DGA General Water Directorate Pt total porosity
--------------------------------- -------------------------------
DIA Environmental Impact Statement QA/QC quality assurance/quality
control
--------------------------------- -------------------------------
DLE direct lithium extraction QP Qualified Person
--------------------------------- -------------------------------
DTM digital surface model RBRC relative brine release
capacity
--------------------------------- -------------------------------
EIA Environmental Impact Study RCA Environmental Qualification
Resolutions
--------------------------------- -------------------------------
ENAMI National Mining Company RO reverse osmosis
--------------------------------- -------------------------------
GPS global positioning system RQD rock quality designator
--------------------------------- -------------------------------
Has hectares R+D research and development
--------------------------------- -------------------------------
H (3) boric acid SEA Environmental Assessment
BO(3) Service
--------------------------------- -------------------------------
HCl hydrochloric acid SEIA Environmental Impact
Assessment System
--------------------------------- -------------------------------
ICP-OES inductively coupled plasma SERNAGEOMIN National Geology and
- optical emission spectrometry Mining Service
--------------------------------- -------------------------------
IRD French Institute de Recherche S-L solid-liquid
pour le Development
--------------------------------- -------------------------------
IRR Internal Rate of Return SO (4) sulfate
--------------------------------- -------------------------------
IVA value added tax SRK SRK Consulting
--------------------------------- -------------------------------
IX ion exchange SS Scoping Study
--------------------------------- -------------------------------
JORC Joint Ore Reserves Committee Sr Specific retention
--------------------------------- -------------------------------
JV joint venture SX solvent extraction
--------------------------------- -------------------------------
K potassium Sy specific yield/drainable
porosity
--------------------------------- -------------------------------
km kilometre TEM transient electromagnetic
--------------------------------- -------------------------------
km (2) square kilometre t tonnes
--------------------------------- -------------------------------
KV kilovolt tonne/hr tonnes per hour
--------------------------------- -------------------------------
L/s litres per second t/y tonnes per year
--------------------------------- -------------------------------
LCE lithium carbonate equivalent TDS total dissolved solids
--------------------------------- -------------------------------
Li lithium US$ United States dollar
--------------------------------- -------------------------------
LiOH*H(2) lithium hydroxide WBS work breakdown structure
O
--------------------------------- -------------------------------
Li (2) lithium carbonate WML Wealth Minerals Ltd.
CO(3)
--------------------------------- -------------------------------
LV Laguna Verde y year
--------------------------------- -------------------------------
m metre ZOIT Zone of Tourist Interest
--------------------------------- -------------------------------
m (3) cubic metres
---------------------------------
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, * Lagoon samples correspond to water brine samples from
random chips, or specific specialised industry the surface lagoon, in an 800 m sampling grid,
standard measurement tools appropriate to the including eight (08) sampling duplicates in random
minerals under investigation, such as down hole gamma positions. The samples were taken from 0.5 m depth
sondes, or handheld XRF instruments, etc). These and, for positions with above 5 m depth a bottom
examples should not be taken as limiting the broad sample were also obtained.
meaning of sampling.
* For every sample, two (02) liters of brine were
* Include reference to measures taken to ensure sample obtained with a one-liter double valve bailer, using
representivity and the appropriate calibration of any a new bailer for each sampling position. All
measurement tools or systems used. materials and sampling bottles were first flushed
with 100 cc of brine water before receiving the final
sample.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* Sub surface brine samples were obtained with three
methods: Packer sampling, PVC Casing Suction sampling
* In cases where 'industry standard' work has been done and PVC Casing Bailer sampling.
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more * For the Packer sampling, a packer bit tool provided
explanation may be required, such as where there is by the drilling company (Big Bear) was used. Once the
coarse gold that has inherent sampling problems. sampling support was sealed, a purging operation took
Unusual commodities or mineralisation types (eg place until no drilling mud was detected After the
submarine nodules) may warrant disclosure of detailed purging operation, half an hour waiting took place to
information. let brine enter to the drilling rods thru the slots
in the packer tool before sampling with double valve
bailer.
* Successive one-liter samples with half an hour
separation were taken with a steel made double valve
bailer. Conductivity-based TDS was measured in every
sample with a Hanna Multiparameter model HI98192. The
last two samples that measure stable similar TDS
values were considered as non-contaminated and
identified as the Original and Reject samples.
* Packer samples were obtained every 18 m support due
the tools movement involved to take every sample.
* PVC Casing Suction brine samples were extracted after
the well casing with 3-inch PVC and silica gravel and
the well development (cleaning) process. The well
development includes an injection of a hypochlorite
solution to break the drilling additives, enough
solution actuation waiting time and then, purging of
three well volumes operation to clean the cased well
from drilling mud and injected fresh water.
* The developing process was made by OSMAR drilling
company using a small rig, a high-pressure compressor
and 2-inch threaded PVC that can be coupled to reach
any depth. The purging/cleaning operation is made
from top to bottom, injecting air with a hose inside
the 2-inch PVC and "suctioning" the water, emulating
a Reverse Circulation system.
* Once the well is clean and enough water is purged (at
least three times the well volume) and also, is
verified that the purged water is brine came from the
aquifer, the PVC Casing Suction samples are taken
from bottom to top, while the 2-inch PVC is extracted
from the well. A 20-liter bucket is filled with brine
and the brine sample is obtained from the bucket once
the remaining fine sediments that could appear in the
sample decant.
* PVC casing Suction samples were taken every 6 m
support due the disturbing and mixing provoked by the
suction process. Conductivity-based TDS (Multi-TDS)
and Temperature degC 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.
* Sampling process was made by JCP Ltda. specialists in
water sampling. Samples were taken from the interest
depths with a double valve discardable bailer. The
bailer is lowered and raised with an electric cable
winch, to maintain a constant velocity and avoid
bailer valves opening after taking the sample from
the desire support. A new bailer was used for each
well
* Bailer samples were obtained every 6 m support to
avoid disturbing the entire column during the
sampling process. Conductivity-based TDS (Multi-TDS)
and Temperature degC were measured for every sample
with the Hanna Multiparameter
* 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 LV01, LV02 and LV03.
PVC Casing Suction samples are available in LV01. PVC
Casing Bailer samples are available in LV01 and LV02.
In LV04 there no brine samples available due
operational timing and, to the onset of the Chilean
winter
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * In Laguna Verde, diamond drilling with PQ3 diameter
hammer, rotary air blast, auger, Bangka, sonic, etc) were used up to 320 m depth. Below that depth the
and details (eg core diameter, triple or standard drilling diameter was reduced to HQ3
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc). * In both diameters a triple tube was used for the core
recovery.
* Packer bit provided by Big Bear was used to obtain
the brine sample (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
Drill sample
recovery * Method of recording and assessing core and chip * Core recovery were assured by direct supervision and
sample recoveries and results assessed. continuous geotechnical logging.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
Logging
* Whether core and chip samples have been geologically * Continue geological and geotechnical logging took
and geotechnically logged to a level of detail to place during drilling
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* For the surface lagoon brine samples, Ph and
Temperature degC parameters were measured during the
* Whether logging is qualitative or quantitative in sampling.
nature. Core (or costean, channel, etc) photography.
* For the sub surface brine packer samples
* The total length and percentage of the relevant conductivity-based TDS and Temperature degC
intersections logged. parameters were measured during the sampling
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * During the brine samples batch preparation process,
and sample half or all core taken. the samples were transferred to new sampling bottles.
preparation Standard (internal standard composed by known stable
brine), Duplicates and Blank samples (distilled
* If non-core, whether riffled, tube sampled, rotary water) were randomly included in the batch in the
split, etc and whether sampled wet or dry. rate of one every twenty original samples. After
check samples insertion, all samples were re-numbered
before submitted to laboratory. Before transferring
* For all sample types, the nature, quality and each sample, the materials used for the transfer were
appropriateness of the sample preparation technique. flushed with distilled water and then shacked to
remove water excess avoiding contamination. The
author personally supervised the laboratory batch
* Quality control procedures adopted for all preparation process.
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 * The nature, quality and appropriateness of the * Brine samples were assayed on ALS Life Science Chile
data and assaying and laboratory procedures used and whether laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES,
laboratory the technique is considered partial or total. method described on QWI-IO-ICP-OES- 01 Edisión A,
tests Modification 0 EPA 3005A; EPA 200.2.
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining * Total Density use the method described on THOMPSON Y,
the analysis including instrument make and model, TROEH DE. Los suelos y su fertilidad.2002. Editorial
reading times, calibrations factors applied and their Reverté S.A. Cuarta Edición.
derivation, etc. Págs.75-85.
* Nature of quality control procedures adopted (eg * Chlorine detemination described on QWI-IO-Cl-01
standards, blanks, duplicates, external laboratory Emisión B mod. 1 Método basado en Standard
checks) and whether acceptable levels of accuracy (ie Methods for the Examination of Water and Wastewater,
lack of bias) and precision have been established. 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01
Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition
2012.
* Total Disolved Solids (TDS) with method describe on
INN/SMA SM 2540 C Ed 22, 2012
* Sulfate according method described on INN/SMA SM 4500
SO4-D Ed 22, 2012
* Duplicates were obtained randomly during the brine
sampling. Also, Blanks (distilled water) and
Standards were randomly inserted during the
laboratory batch preparation.
* The standards were prepared on the installations of
Universidad Católica del Norte using a known
stable brine according procedure prepared by Ad
Infinitum. Standard nominal grade was calculated in a
round robin process that include 04 laboratories. ALS
life Sciences Chile laboratory was validated during
the round robin process.
* All check samples were inserted in a rate of one each
twenty original samples
* For the 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
0degC) to a corrected value of 1,660 m/s (1.14 g/cm3
density at 0degC), reducing the original bathymetry
depth data in 15%
* For the TEM Geophysical survey a Zonge Engineering
and Research Organization, USA equipment was used,
composed by a multipurpose digital receiver model
GDP-32 and a transmitter TEM model ZT-30, with
batteries as power source.
* For the first survey campaign, made in May, 2021 a
coincident transmission / reception loop was used,
were 167 stations use 100x100 m2 loop and 4 stations
use 200x200 m2 loop, reaching a survey depth of 300 m
and 400 m respectively, arranged in 11 lines with 400
m of separation.
* For the second TEM geophysical survey made in March
2022, 32 TEM stations, arranged in 6 lines, with 400
m separation were surveyed. A coincident Loop Tx=Rx
of 200 x 200 m2 that can reach investigation depth of
400 m were used for this survey
Verification
of sampling * The verification of significant intersections by * The assay data was verified by the author against the
and assaying either independent or alternative company personnel. assay 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 * Geological and geotechnical logs were managed by
electronic) protocols. geology contractor GEOMIN and checked by the
competent person
* Discuss any adjustment to assay data.
* Brine samples batches were prepared personally by the
competent person. All data are in EXCEL files
Location
of data * Accuracy and quality of surveys used to locate drill * Samples coordinates were captured with
points holes (collar and down-hole surveys), trenches, mine non-differential hand held GPS
workings and other locations used in Mineral Resource
estimation.
* The bathymetry coordinates were captured by
differential Thales Navigation differential GPS
* Specification of the grid system used. system, consisting in two GPS model Promark_3,
designed to work in geodesic, cinematic and static
modes of high precision, where one of the instruments
* Quality and adequacy of topographic control. is installed in a base station and the other was on
board the craft.
* The TEM geophysical survey coordinates were captured
with non-differential hand held GPS.
* Drillhole collars were captured with non-differential
hand held GPS. Position was verified by the mining
concessions field markings. Total station topographic
capture of the drillhole collars is pending
* The coordinate system is UTM, Datum WGS84 Zone 19J
* Topographic control is not considered critical as the
lagoon and its surroundings are generally flat lying
and the samples were definitively obtained from the
lagoon
Data spacing
and * Data spacing for reporting of Exploration Results. * Geochemical lagoon samples spacing is approximately
distribution 800 m, covering the entire lagoon area
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Packer brine samples were taken every 18 m
grade continuity appropriate for the Mineral 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 were taken every 6 m
* For bathymetry two grids were used, one of 400 m and
the other of 200 m in areas were the perimeter have
more curves
* For TEM geophysical survey a 400 m stations distance
was used
* The author believes that the data spacing and
distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the
Resource Estimation
Orientation
of data * Whether the orientation of sampling achieves unbiased * The lagoon is a free water body and no mineralized
in relation sampling of possible structures and the extent to structures are expected in the sub surface deposits
to which this is known, considering the deposit type.
geological
structure
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample
security * The measures taken to ensure sample security. * All brine samples were marked and keep on site before
transporting them to Copiapó city warehouse
* The brine water samples were transported without any
perturbation directly to a warehouse in Copiapó
city, were laboratory samples batch was prepared and
stored in sealed plastic boxes, then sent via currier
to ALS laboratory Antofagasta. All the process was
made under the Competent Person direct supervision.
* ALS personnel report that the samples were received
without any problem or disturbance
Audits
or reviews * The results of any audits or reviews of sampling * The assay data was verified by the Competent Person
techniques and data. 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. Haines 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 * Type, reference name/number, location and ownership * CleanTech Lithium holds in Laguna Verde 2,437
and land including agreements or material issues with third hectares of Exploitation Mining Concessions that
tenure status parties such as joint ventures, partnerships, cover the entire lagoon area under an Option
overriding royalties, native title interests, Agreement and 4,235 hectares of Exploration Mining
historical sites, wilderness or national park and Concessions outside the lagoon area.
environmental settings.
* All prohibition certificates in favour of Atacama
* The security of the tenure held at the time of Salt Lakes SpA were reviewed by the Competent Person.
reporting along with any known impediments to The Competent Person relies in the Mining Expert
obtaining a licence to operate in the area. 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 * Acknowledgment and appraisal of exploration by other * Exploration works has been done by Pan American
other parties parties. Lithium and Wealth Minerals Ltda.
Geology
* Deposit type, geological setting and style of * Laguna Verde is a hyper saline lagoon that is
mineralisation. 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 * The following drillhole coordinates are in WGS84 zone
understanding of the exploration results including a 19 J Datum
tabulation of the following information for all
Material drill holes:
* LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.
o easting and northing
of the drill hole collar * LV02 E553,992 N7,024,396 ELEV 4,358 m a.s.l.
o elevation or RL (Reduced
Level - elevation above
sea level in metres) * LV03 E549,980 N7,028,434 ELEV 4,402 m a.s.l.
of the drill hole collar
o dip and azimuth of
the hole * LV04 E556,826 N7024,390 ELEV 4,350 m.a.s.l.
o down hole length and
interception depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * For the Surface Brine Resource no low-grade cut-off
methods techniques, maximum and/or minimum grade truncations or high-grade capping has been implemented due to the
(eg cutting of high grades) and cut-off grades are consistent nature of the brine assay data
usually Material and should be stated.
* For the Sub Surface Resource a cut-off of 150 mg/l Li
* Where aggregate intercepts incorporate short lengths was applied in the above 4,112 m Block Model for
of high grade results and longer lengths of low grade resource reporting.
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail. * Only one auxiliary average composite sample from
deepest seven (07) PVC Casing Bailer samples from
well LV02 were used to calculate resources (Inferred)
* The assumptions used for any reporting of metal from 4,074 m a.s.l. to the basement level at 3,955 m
equivalent values should be clearly stated. a.s.l. in the LV02 drillhole near area
Relationship
between * These relationships are particularly important in the * The relationship between aquifer widths and intercept
mineralisation reporting of Exploration Results. lengths are direct, except in LV03 were a dip of
widths and -60deg should be applied
intercept
lengths * 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 * Addressed in the report
* 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.
Balanced * All results have been included.
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * All material exploration data and results have been
exploration should be reported including (but not limited to): included
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further
work * The nature and scale of planned further work (eg * Once the access to Laguna Verde and to the wells LV02
tests for lateral extensions or depth extensions or and LV04 is open, re-take the development (cleaning)
large-scale step-out drilling). process and PVC Casing sampling in both wells.
* Diagrams clearly highlighting the areas of possible * Build a new set of brine Standards from Laguna Verde
extensions, including the main geological lagoon or other known brine source and calculate
interpretations and future drilling areas, provided their Standard Nominal Grades with a Round Robin
this information is not commercially sensitive. process. Check the primary laboratory ALS accuracy in
the process
* Once the LV02 and LV04 PVC Casing Suction and Bailer
Sampling is complete send this samples to laboratory
for assaying, including QA/QC check samples
insertion. With the laboratory results, re calculate
the Laguna Verde resources including all up to date
assays information and report them in an update JORC
Technical report.
* Drilling to be undertaken upgrade Inferred Resources
to Measured + Indicated and Indicated Resources to
Measured Resources
* Hydraulic testing be undertaken, for instance pumping
tests from wells to determine, aquifer properties,
expected production rates, upgrade Resources to
Reserves and infrastructure design
* Lagoon recharge dynamics be studied to determine the
water balance and subsequent production water
balance. For instance, simultaneous data recording of
rainfall and subsurface brine level fluctuations to
understand the relationship between rainfall and
lagoon recharge, and hence the brine recharge
dynamics of the Lagoon
=============== =============================================================== ============================================================
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 * Cross-check of laboratory assay reports and Database
corrupted by, for 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 * A site visit was undertaken by the Competent
Competent Person and the outcome of those visits.
Person from June 2nd to June 4th,
* If no site visits have been undertaken indicate why 2021. The outcome of the visit was
this is the case. a general geological review and the
lagoon water brine geochemical sampling
that lead to the July 2021 JORC Technical
Report
* The January to May 2022 drilling campaign was
continually supervised by the Competent Person.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * For the Surface Brine Resource, the interpretation is
the geological interpretation of the mineral deposit. direct and there is no uncertainty.
* Nature of the data used and of any assumptions made. * For the Sub-Surface Resource, the geological
interpretation was made based in the TEM study and
gravimetry (SRK, 2011). The lithological
* The effect, if any, of alternative interpretations on interpretation was confirmed by hydrogeological
Mineral Resource estimation. drilling made outside the concessions area.
* The use of geology in guiding and controlling Mineral * Low resistivities are associated with sediments
Resource estimation. saturated in brines, but also with very fine
sediments or clays. The direct relationship of the
low resistivity layer with the above hypersaline
* The factors affecting continuity both of grade and lagoon raise the confidence that the low
geology. resistivities are associated with brines.
* Drillholes confirm the geological interpretations
Dimensions
* The extent and variability of the Mineral Resource * For the Surface Brine Resouce the lagoon dimensions
expressed as length (along strike or otherwise), plan are 14,682,408 m(2) of area with depths ranging from
width, and depth below surface to the upper and lower 0 m to 7.18m with an average depth of 4.05 m
limits of the Mineral Resource.
* The Sub-Surface Brine Resource is a horizontal lens
closely restricted to the lagoon perimeter with an
area of approximately 55 km(2) and depths for more
than 300 m, from approximately 4,309 m a.s.l. to the
basement level.
Estimation
and modelling * The nature and appropriateness of the estimation * For the Surface Brine resource, the surface lake
techniques technique(s) applied and key assumptions, including brine water volume is directly obtained by the
treatment of extreme grade values, domaining, 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
description of computer software and parameters used. homogeneously distributed along the lagoon with a
narrow value distribution. the lagoon is a free water
body where the ionic content is dynamic for every
* The availability of check estimates, previous specific position, there is no point in estimate the
estimates and/or mine production records and whether lake lithium content via Kriging or other
the Mineral Resource estimate takes appropriate geostatistical method. The use of the total samples
account of such data. average value 245.794 mg/l was used for the Surface
Brine Resource Estimation.
* The assumptions made regarding recovery of
by-products. * The Sub-Surface geological 3D model was built
modifying the 50 m plans constructed for the July
2021 Inferred resource, considering the drillholes
* Estimation of deleterious elements or other non-grade interceptions and the TEM geophysics continuity from
variables of economic significance (eg sulphur for all the available geophysical sections (in general
acid mine drainage characterisation).
* Two block models were constructed for resource
* In the case of block model interpolation, the block calculation due the different type of brine samples
size in relation to the average sample spacing and used for resource estimation, one above the 4,112 m
the search employed. a.s.l. and the other, below 4,112 ma.s.l.
* Any assumptions behind modelling of selective mining * The block model above level 4,112 m a.s.l. properties
units. are: Block size: 200 m x 200 m x 6 m. Block Model
Origin: 547,000 East, 7,026,000 North, Level 4,328 m
a.s.l. Ndeg Columns: 72
* Any assumptions about correlation between variables.
Ndeg Rows: 40
* Description of how the geological interpretation was Ndeg Levels: 36
used to control the resource estimates. Rotation: 20deg Clockwise
* The block model below level 4,112 m a.s.l. properties
* Discussion of basis for using or not using grade are:
cutting or capping.
Block size: 200 m x 200 m x 6 m.
* The process of validation, the checking process used, Block Model Origin: 547,000 East,
the comparison of model data to drill hole data, and 7,026,000 North, Level 4,112 m a.s.l.
use of reconciliation data if available. Ndeg Columns: 72
Ndeg Rows: 40
Ndeg Levels: 35
Rotation: 20deg Clockwise
* On both block models the individual block variables
are:
Rock Type: 0=No Ore, 1= Brine Ore
Density
Percent
Economic
Material
Li (Lithium)
Mg (Magnesium)
K (Potash)
B (Boron)
SO4
Ca (Calcium)
Category: 1=Measured, 2=Indicated
and 3=Inferred
Porosity
Elevation
* The traditional Inverse to the Square Distance method
to estimate the block variables was used. To
accomplish this, the samples from the Sub-Surface
Assay Resource Database were manually assigned to
their correspondent block levels on both block
models. Once assigned, the block variable values were
calculated by levels with the correspondent assigned
samples and their horizontal distances from the
individual block to estimate. All calculations were
performed in EXCEL files.
* The Sub-Surface Assay Resource Database was
constructed according the following considerations:
* PVC casing Bailer samples from drillholes LV01 and
LV02 were used from level 4,309 m a.s.l., down to
4,112 m a.s.l.
* Samples evidently contaminated with drilling water
were extracted from LV02 preliminary PVC Casing
Bailer samples and the gaps were replaced with the
correspondent LV02 Packer sample.
* Packer samples from LV01 and LV03 drillholes plus the
deepest seven (07) PVC Casing Bailer samples from
well LV02 and, a final auxiliary average composite
sample from the seven before mentioned samples were
used to calculate resources below level 4,112 m
a.s.l. to the basement level at 3,955 m a.s.l.
* The validation process was mainly visual check in
plans along block model levels and, on the estimation
EXCEL files
* For both block models, the blocks inside the
Sub-Surface Brine Ore Volume have variable Rock Type
= 1 (Brine Ore). Only blocks with Rock Type = 1 were
reported as resource
Moisture * Not applicable for brine resources
* Whether the tonnages are estimated on a dry basis or
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * A cut-off of 150 mg/l Li was used to report resources
parameters applied. in the Above 4,112 m block model, mainly to discount
blocks estimated with low grade samples located in
the fresh water / brine transition zone
Mining
factors * Assumptions made regarding possible mining methods, * Mining will be undertaken by pumping brine from 23
or assumptions minimum mining dimensions and internal (or, if extraction wells around the Laguna Verde perimeter.
applicable, external) mining dilution. It is always The brine will be transferred to the DLE adsorption
necessary as part of the process of determining plant and the spent brine depleted in lithium will be
reasonable prospects for eventual economic extraction re-injected into the salar basin through 16 deep
to consider potential mining methods, but the wells in two areas where the mineral resource will
assumptions made regarding mining methods and not be affected by dilution.
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 * A hydrogeological model is being developed to allow
of the mining assumptions made. modelling of the extraction and reinjection of brine.
* Pumping tests should be undertaken to ascertain
hydraulic properties of the host aquifer
Metallurgical
factors * The basis for assumptions or predictions regarding * The metallurgical capacity of lithium recovery in the
or assumptions metallurgical amenability. It is always necessary as process has been estimated at 85.2% to obtain lithium
part of the process of determining reasonable carbonate in battery grade.
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment * The process of obtaining lithium carbonate considers
processes and parameters made when reporting Mineral the following stages:
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made. 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 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 analysed 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 * Assumptions made regarding possible waste and process * The main environmental impacts expected is the main
or assumptions residue disposal options. It is always necessary as plant installations, estimated to be located at 8 km
part of the process of determining reasonable to the south west of the lagoon edge. In the near
prospects for eventual economic extraction to lagoon area, the impact is the surface disturbance
consider the potential environmental impacts of the associated with production wells and brine mixing
mining and processing operation. While at this stage ponds. These impacts are not expected to prevent
the determination of potential environmental impacts, project development
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental * Reinjection of the spent brine into the aquifer
impacts should be reported. Where these aspects have ensures that water depletion from the aquifer is
not been considered this should be reported with an minimised
explanation of the environmental assumptions made.
* The main waste product is sodium chloride. This could
be sold for use in road construction or mixed with
the spent brine and returned to the aquifer without
altering the aquifer solution chemistry
* The project area is arid and at 4300m with scarce
fauna and no human habitation within 100km
Bulk density
* Whether assumed or determined. If assumed, the basis * Undisturbed diamond drillhole core samples with 3 to
for the assumptions. If determined, the method used, 5-inch length in both PQ and HQ diameter were
whether wet or dry, the frequency of the measurements obtained every 10 m from all drillholes for porosity
, testing. Samples were prepared and sent to Daniel B.
the nature, size and representativeness of the Stephens & Associated, Inc. laboratory (DBS&A) in New
samples. Mexico, USA. Samples underwent Relative Brine Release
Capacity laboratory tests, which predict the volume
of solution that can be readily extracted from an
* The bulk density for bulk material must have been unstressed geological sample. This method by itself
measured by methods that adequately account for void is insufficient for calculating an effective porosity
spaces (vugs, porosity, etc), moisture and (specific yield) value for resource estimation as the
differences between rock and alteration zones within laboratory test is performed on an unstressed core
the deposit. sample and doesn't account for the host lithology
geotechnical condition. To attain a more realistic
specific yield value, the rock quality designator
* Discuss assumptions for bulk density estimates used ("RQD") logged during the drilling was used with a
in the evaluation process of the different materials. regression analysis. This provided specific yield
values that are consistent with the basin lithology.
Classification
* The basis for the classification of the Mineral * For the Surface Brine Resource, the data is
Resources into varying confidence categories. considered sufficient to assign a Measured Resource
classification
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in * For the Sub-Surface Resources classification, the
tonnage/grade estimations, reliability of input data, considered criteria were based on the recommended
confidence in continuity of geology and metal values, sampling grid distances of the complementary guide to
quality, quantity and distribution of the data). CH 20235 code to report resources and reserves in
brine deposits from the Comision Calificadora en
Competencias en Recursos y Reservas Mineras, Chile.
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
* Besides that, the Sub-Surface Resources
categorization is dependent of the brine samples
availability and their quality in terms of
confidence. Considering the above, the Sub-Surface
resources categorization conditions are:
* For the Above 4,112 m a.s.l. block model.
Blocks estimated at 1,250 m around
LV01 PVC Casing Bailer samples were
considered as MEASURED
Blocks estimated between 1,250 m
to 3,000 m around LV01 PVC Casing
Bailer samples were considered as
INDICATED
Blocks estimated at 3,000 m around
the LV02 PVC Bailer samples were
considered as INDICATED
The rest of the blocks that don't
match the above conditions were considered
as INFERRED
* For the Below 4,112 m a.s.l. block model.
Blocks estimated at 3,000 m around
LV01 and LV03 Packer samples were
considered as INDICATED
Blocks estimated at 3,000 m around
the available LV02 PVC Bailer samples
(discounting the AVERAGE auxiliary
sample) were considered as INDICATED.
The rest of the blocks that don't
match the above conditions were considered
as INFERRED
* The result reflects the view of the Competent Person
Audits
or reviews * The results of any audits or reviews of Mineral * The July 2021 JORC technical report were reviewed by
Resource estimats. 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. Haines 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 * Where appropriate a statement of the relative * The estimated tonnage represents the in-situ brine
accuracy/ accuracy and confidence level in the Mineral Resource with no recovery factor applied. It will not be
confidence estimate using an approach or procedure deemed possible to extract all of the contained brine by
appropriate by the Competent Person. For example, the pumping from production wells. The amount which can
application of statistical or geostatistical be extracted depends on many factors including the
procedures to quantify the relative accuracy of the permeability of the sediments, the drainable porosity,
resource within stated confidence limits, or, if such and the recharge dynamics of the aquifers.
an approach is not 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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