TIDMCTL
RNS Number : 6765I
CleanTech Lithium PLC
06 December 2022
6.12.22
CleanTech Lithium PLC ("CleanTech Lithium" or the "Company")
Operations and Corporate Update
CleanTech Lithium PLC (AIM:CTL), an exploration and development
company advancing the next generation of sustainable lithium
projects in Chile, announces an operations and corporate update
including progress achieved during a recent Board visit to Chile,
in which very positive meetings were held with Chilean Government
representatives, and on other activities as the Company maintains
progress towards the expected commencement of lithium production in
2025.
Highlights:
Operations:
-- Laguna Verde:
o Resource drilling commenced at LV06 on 23 November 2022,
installation of metal casing over the upper 42m has been completed
successfully
o A second rig has been mobilised so drilling at LV06 and LV05
can proceed concurrently
o Updated JORC resource estimate remains on track for the end of
Q1 2023
o Scoping Study to be reported to the market in the coming
weeks
o Pre-Feasibility Study ("PFS") quotes received from two leading
international consultants, appointment to be confirmed this month
and work to commence immediately afterwards. Plan to complete PFS
in H2 2023
-- Francisco Basin:
o Resource drilling - improvement to access road underway which
will be followed by establishment of the camp and commencement of
drilling by month end
o Scoping Study underway, expected to be completed in Q1
2023
o Updated JORC resource estimate from wells FB02, FB03 and FB04
expected by the end of H1 2023
-- Llamara:
o Granting of licences is in the final stages, having complied
with all the relevant court requirements, plan to commence drilling
in early Q1 2023 once licences have been granted
-- Direct Lithium Extraction ("DLE") Pilot Plant:
o Lab scale DLE demo unit delivered to Copiapo, Chile, being set
up with the assistance of the DLE processing partner, SunResin
o Pilot plant DLE unit, a component of a full pilot plant to
produce 1 tonne per month of battery grade lithium as carbonate and
hydroxide, has been ordered from SunResin's facilities in Belgium.
Installation and commissioning expected in Q2 2023
-- Expansion of operational team in Chile and plan to open an
office in Copiapo as the operational centre for the Company in the
coming weeks.
Board Visit to Chile:
-- Visits made to both sites at Laguna Verde and Francisco Basin
to meet the drilling crews and see the ongoing drilling of well
LV06 at Laguna Verde
-- Very positive meetings held with key central and regional
authorities to promote CleanTech Lithium and seek cooperation
towards the Company's plan to commence production at Laguna Verde
in 2025, including discussions on progressing the production permit
(CEOL) applications
-- Meeting held with SunResin representatives in Santiago to
agree the forward programme on the Company's plan to commence
construction of the first 20,000 tonne per annum lithium
carbonate/hydroxide production facility at Laguna Verde in 2024 -
with SunResin confirming the plant can be delivered to the Shanghai
port within eight months of being ordered.
Commenting, Aldo Boitano, Chief Executive Officer, of Cleantech
Lithium PLC, said: "We are delighted to see significant progress
being made on many fronts. Our drilling campaign at Laguna Verde
has re-commenced and mobilisation to Francisco Basin is expected
very shortly. We intend to announce the results of the Laguna Verde
Scoping Study in the very near future and commence the PFS soon
after.
"The recent Board visit involved positive meetings with key
Government and regional representatives, all of whom expressed
support for the Company's objective to produce battery grade
lithium in a relatively short timescale and in a sustainable
manner. They were pleased to see the Company employing increasing
numbers of locals and promoting the Company's green credentials
with local communities. An office will be opened in Copiapo which
will further facilitate this engagement.
"Finally, we had a very positive meeting in Santiago with our
DLE processing partner, SunResin, who have already delivered DLE
plants in various countries and are working with the Company on our
pilot plant. We feel reassured that they will be able to work
towards our expected schedule to deliver the facilities required to
commence lithium production from our projects in 2025 and we look
forward to working with SunResin as a long-term commercial partner,
delivering our pilot plant in the near-term."
Further Information:
Operations:
Laguna Verde
At Laguna Verde the focus of the current exploration season is
to complete wells LV05 and LV06, the locations of which are shown
in Figure 1. Access roads to the wells and the establishment of the
drilling camp were completed in November 2022. The wells are
drilled with a 'pre-well' drill rig which uses a wide diameter
20-inch drill for the upper approximately 50m. A 14-inch steel
casing is inserted to stabilise the upper well before a 10-inch
diameter reverse circulation drill is used to drill to depth. The
well is then cased to depth with 8-inch PVC casing included slotted
casing over the aquifer zone.
Figure 1: Laguna Verde Drill Plan Map
LV05 and LV06 well sites are important locations with respect to
the Laguna Verde resource model, aligning with the deepest sections
of the model and being most representative of the sub-surface
resource directly beneath the footprint of the Laguna. LV05 is
located closer to the eastern margin of the Laguna than the well
LV03 completed in 1H 2022, where samples collected at depth
recorded lithium grades of up to 409mg/L. On successful completion
and development of the wells, they will also be used as the primary
pump test wells for key hydrogeological test-work.
The drilling of LV06 commenced on 23 November 2022, encountered
a brine aquifer at 12 metres. The upper 42m of the well has been
cased with steel casing. The pre-well drill rig has now been
mobilised to the site of LV05, and a second reverse circulation
drill rig has been mobilised to LV06 to drill the well to depth and
allow for both wells to proceed simultaneously. The wells are
expected to be completed in January 2023, with results and an
updated JORC resource estimate expected by the end of Q1 2023.
Feasibility studies continue to progress with the Laguna Verde
Scoping Study to be reported to the market in the coming weeks
while quotes have been received from two leading international
consultants for the undertaking of a PFS. The PFS appointment is
expected to be confirmed this month and work will commence
immediately after. The PFS is planned to be completed in Q3
2023.
Francisco Basin
At Francisco Basin the focus of the current exploration season
is to complete wells FB02, FB03 and FB04, the locations of which
are shown in Figure 2. FB01 was completed in 1H 2022 and formed the
basis for the JORC Inferred resource estimate of 0.51 million
tonnes of Lithium Carbonate Equivalent ("LCE"). The aquifer
intersected at FB01 is interpreted to extend to the locations of
FB02, FB03 and FB04. The Chilean winter period recorded unusually
heavy snowfall in the region which impacted the mining haul road
that connects to Francisco Basin, as opposed to the paved
international highway that connects to Laguna Verde, necessitating
road works which are currently underway.
Figure 2: Francisco Basin Drill Plan Map
The Company expects the roadworks to be completed within 10
days, followed by camp and drill rig mobilisation which would allow
for the commencement of drilling by month end. Prior to the winter
break, well FB02 was drilled to a depth of 102m with steel casing
installed in the upper 51m. The three wells are expected to be
completed in early Q2 2023, with results and an updated JORC
resource estimate expected by the end of H1 2023.
A Scoping Study has commenced on the Francisco Basin project and
is expected to be completed in Q1 2023.
Llamara Project
Licence applications were submitted in May 2022, having followed
all relevant land concession and court requirements, and the
typical granting period for applications in Chile is 6 - 9 months,
providing a timeframe of November 2022 - January 2023. The
Company's geology team have selected the preferred location for the
planned exploration drill hole based on historical geophysics
survey data which interprets a thick hypersaline aquifer in the
licence area. The drilling contractor operating at Laguna Verde and
Francisco Basin will also undertake the drilling at the Llamara
project. The simultaneous drilling of three projects in Chile
represents a significant undertaking for both CTL as an exploration
and development stage company and the local drilling contractor,
which underlines the importance of having a productive partnership
for both parties.
DLE Pilot Plant
A lab-scale DLE demo unit that was recently delivered to Copiapo
is being set up with the assistance of SunResin. This will produce
small quantities of post DLE eluate that will be used for process
testing.
CTL has ordered the DLE unit for a pilot plant that plans to
produce 1 tonne per month of battery grade lithium as carbonate and
hydroxide. This unit will be manufactured at SunResin's facilities
in Belgium and is planned to be installed and commissioned in Q2
2023. The pilot plant will provide process verification data that
will be an important input into the PFS and also produce sufficient
quantities of battery grade lithium carbonate and hydroxide for
product testing by potential customers, such as battery
manufacturers, auto-makers and international traders. CTL has a
dedicated facility in Copiapo that is suitable for both the demo
unit and the planned pilot plant.
Expansion of Operational and Support Team in Chile
As the Company has increased its activities in Chile over the
course of 2022, it has looked to ensure that it has the staffing
resources required to deliver its forward work programmes in an
effective manner and, ultimately, achieve sustainable lithium
production using the DLE process in 2025.
In that regard, the Company has established new management
positions in the following activities over the past few months:
-- Operations: Operations Coordinator, working with the COO and
CEO on various operational tasks, including the Scoping Studies and
PFS
-- DLE: DLE Process Manager who will be supported on the DLE
pilot plant in the near future by other specialist new hires in
Copiapo
-- Environmental: Environmental Consultant to help drive the EIA process
-- Community Relations: Community Relations Manager to work with
the regional authorities and local communities in the Atacama
region to ensure full community support for the Company's projects
going forward
-- Hydrogeology: Hydrogeologist to manage the consultants
working on the hydrogeological studies which will form a critical
part of our planned DLE based operation and also as a key element
of the EIA and PFS
-- HR: Organisational Development Consultant to assist with the
HR activities required as the Company looks to take on significant
extra staffing to support the construction phases of the Company's
projects.
At the beginning of 2022, the Company had just three full-time
members of staff working in Chile, very much a fledging company
from an operational point of view. It is now forecast that by the
end of 2022 there will be around 20 staff in the Company's Chile
organisation, reporting to the CEO, with the addition of
approximately 80 contractors working at both drilling sites (two
rotational crews).
Opening of Office in Copiapo
As the Company has grown over the past year, it is clear that a
greater presence in Copiapo is needed, especially from an
operational, regulatory and community relations point of view.
Copiapo, which has a population of approximately 158,000 people, is
the main city in the Atacama region and is located circa.
200km-260km from the Laguna Verde and Francisco Basin projects. The
Company therefore plans to open a new office in the coming weeks
which will become the Company's main operational base and will also
be a hub where local people - and other interested parties and NGOs
- will be able to visit to communicate with Company personnel on
the Company's forward plans.
The new office will be located in the centre of Copiapo, close
to the offices of the regional regulatory authorities and the
Presidential Delegate for the Atacama region.
Board Visit to Chile:
The Board visit to Chile, over the course of two weeks, was
intended to achieve the following objectives:
-- to meet the new team in Chile - given the significant
expansion of that team throughout 2022 - and to work with the
various managers on agreeing the work programmes, budgets and KPIs
for 2023. This involved various presentations by management on
specific activities
-- to visit the operational sites at Laguna Verde and Francisco
Basin and see the progress being made on the drilling campaigns,
liaising with the drilling crews on site. This involved an
overnight stay at the Laguna Verde drilling camp
-- to meet with regulatory bodies, Government representatives
and also representatives of state organisations in Copiapo and
Santiago, and
-- to meet with representatives from SunResin who had flown to
Santiago to discuss the installation and operation of the DLE pilot
plant which had recently been ordered by the Company and to
consider actions required leading up to the order of the full DLE
plant which the Company aims to construct and install in 2024.
Meetings with Government and other Bodies
The Chairman, CEO and CFO met with the following central,
regional and state body representatives during their visit to
Chile:
Mining ministry: Mining Undersecretary
Regional Government of Atacama:
-- 1(st) meeting: Deputy Regional Governor, Productive Development chief
-- 2(nd) meeting: Mining Regional Secretary
-- 3(rd) meeting: Presidential Delegate
ENAMI: Executive vice president
ENAMI is one of the state bodies charged with encouraging the
exploitation and marketing of minerals in Chile.
All meetings were very positive with support being shown from
all for the Company's plans to produce lithium in a sustainable
manner. The employment of people from the local communities was
stressed, as well as ensuring continuing direct dialogue with local
communities is maintained during all stages of the projects. The
process for obtaining the production permits (CEOLs) for the
projects was also discussed and further discussions are planned in
the near future on the best means of progressing these over the
coming months.
Meeting with SunResin
Representatives from SunResin also met with CTL's Board and
technical team to discuss the progress on the recently ordered
pilot plant DLE unit and more importantly the forward programme on
the Company's plan to commence construction of the first 20,000
tonne per annum lithium carbonate/hydroxide production facility at
Laguna Verde in 2024. SunResin's presentation outlined its
leadership in deploying DLE at the commercial scale and highlighted
it capacities across providing:
-- An end-to-end process covering the DLE stage through to the
final stage of producing battery grade lithium products
-- Modular based commercial scale plants that are scalable and
can be ready to be shipped within eight months of being ordered
-- Commercial arrangements that are based on transparent pricing
-- Project delivery that covers engineering and procurement
along with local construction with SunResin's support, and
-- Product performance guarantees such as lithium recovery rate
benchmarks that mitigate risk and provide critical support for
future fund raising.
CleanTech Lithium management and its technical team plan to
visit operating DLE plants in China that use SunResin's technology
in H1 2023. SunResin considers highly projects that have a clear
path to permitting and no significant operational hurdles and
clearly sees the Company as a long-term commercial partner.
Figure 3: Meeting with SunResin in Santiago, 26 November
2022
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 cleantech@celicourt.uk
Dennis
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 +44 20 3884 8450
(Joint Broker)
Daniel Fox-Davies daniel@fox-davies.com
Canaccord Genuity Limited +44 (0) 207 523 4680
(Joint Broker)
James Asensio
Gordon Hamilton
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this inside information is now
considered to be in the public domain. The person who arranged for
the release of this announcement on behalf of the Company was
Gordon Stein, Director and CFO.
Notes
CleanTech Lithium (AIM:CTL) 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 from 2025 onwards, 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. The Company has also further
applied for an additional 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.
About SunResin:
SunResin was established in 2001 and specialises in supplying
selective extraction resins, equipment solutions and technical
services. SunResin manufactures about 50,000M(3) of resins and
adsorbers annually. Its resin portfolio consists of around 25
product categories and more than 200 different resin types, used in
sectors which include; mining and hydrometallurgy, water and waste
water treatment, SunResin holds more than 30 patents.
SunResin has over 10 years of experience in DLE, having executed
nine commercial DLE contracts representing a total capacity of
73,000 tonnes per annum of lithium. Among the nine contracts, four
plants are currently in operation, three are under construction and
a further two are new projects. In addition, SunResin has executed
a large-scale pilot operation with a capacity of 600 tonnes per
annum for a lithium project operated by BYD, the Chinese automaker
which is the world's second largest electric vehicle producer by
sales volume.
SunResin was engaged by Tibet Summit Resources (a Chinese public
company) in February 2022 as the DLE resin and plant provider for
their USD 721 million lithium project in Argentina with a capacity
of 50,000 tonnes per annum of battery grade lithium. The project is
due to start production in the first half of 2023. SunResin will
provide the project's first 25,000 tonne per annum phase in a
contract valued at USD 102.6 million, with this including the resin
plant and resins. SunResin have confirmed that all equipment should
be installed on site in Argentina before the end of 2022.
**ENDS**
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