CleanTech resource upgrade supports ambitious lithium production targets
(), the Chilean focused green lithium explorer, has revealed an upgraded JORC resource estimate of 1.8 million tonnes of lithium carbonate equivalent (LCE) at a grade of 200mg/L lithium at its flagship Laguna Verde project.
The company said the resource upgrade had met expectations, and that it would underpin an annual production rate of 20,000 tonnes of battery grade LCE for a 30-year operation, from an estimated resource of over 800Mt (measured + indicated), and a total recovery rate of 85.2%
The upgraded resource estimate follows a successful six-well drilling and test programs at Laguna Verde in the first half of 2023, which was completed at a cost of £2.25 million, within 3% of the approved budget.
Within the upgrade, the Measured and Indicated resources saw significant growth, increasing by 39% to 1.1 million tonnes LCE, with the Measured resource alone experiencing a remarkable 174% increase to 0.46 million tonnes LCE. A recent pump test program further supported the bore field flow rates modelled in the Laguna Verde Scoping Study announced in January 2023.
This upgrade provides a strong foundation for the ongoing Pre-Feasibility Study (PFS), which is targeted for completion later this year.
Additionally, CleanTech Lithium PLC expects a resource upgrade for its second project, Francisco Basin, in the upcoming weeks based on results from five wells drilled in the first half of 2023. Subsequently, the Francisco Basin Scoping Study, which is already well advanced, will follow shortly after.
This study reinforces the project's path to production and capital requirements and will support CleanTech Lithium's engagement with potential strategic partners. Partners are likely to be attracted by the project's low operating cost of $3,875/tonne and a low capex of US$383.6m, underpinning a post-tax NPV of US$1.83bn and IRR of 45.1%, with a payback period of 1 year and 8 months. The costs are competitive even in comparison with projects using traditional extraction processes such as solar evaporation.
CleanTech’s decision to use direct lithium extraction is also advantageous in light of environmental demands of potential industrial customers. DLE is a greener extraction method that minimises aquifer depletion and has a smaller geographical footprint than conventional evaporation brines.
In addition to employing DLE methods, CleanTech has committed to using 100% renewable energy in processing LCE, and is therefore an attractive option for clients, investors, and governments that have set net zero goals. The pilot DLE plant is due for commissioning in Q3 2023, targeting 1 tonne per month of LCE. Meanwhile, the company remains well funded, well-funded with £12.4m in the bank at year-end – before this year’s exploration costs - following October's fundraise.
Summary of the upgrade:
Table 1: Comparison of Laguna Verde JORC Resource Estimates: September 2022 and July 2023
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