GCICleanTech Lithium reports steady progress across all assets, on track for production in 2025
(), a Chile-focused lithium explorer, released an operations and corporate update this morning, including progress on recent meetings with the Chilean government, as the company aims for commencement of lithium production in 2025.
CleanTech currently has two active lithium projects - Laguna Verde and Francisco Basin projects located in South America's lithium triangle. CleanTech is also in the process of acquiring a third asset at nearby Llamara, with regulatory approval of 119 license applications in final stages.
Laguna Verde
ClaenTech said resource drilling commenced at LV06 on 23 November, and a metal casing over its upper 42m has been installed successfully. A second rig has been mobilised so drilling at LV05 and LV06 can proceed concurrently.
CleanTech expects an updated JORC resource estimate for Laguna Verde by the end of 1Q 2023. A scoping study will be reported in the coming weeks.
CleanTech said it has received pre-feasibility study quotes from two international consultants and will confirm an appointment this month. The company expects a PFS to be completed in 2H 2023.
Francsico Basin
Improvements to the access road at Francisco Basin are underway, to be followed by establishment of a camp and commencement of drilling by month end, CleanTech said.
A scoping study at Francisco Basin is underway and expected to be completed by 1Q 2023. An updated JORC resource estimate from wells FB02, FB03, and FB04 is also expected by end of 1H 2023.
Llamara
CleanTech is in the final stages of acquiring licenses for Llamara, having complied with all relevant court requirements.
CleanTech plans to commence drilling at Llamara in early 1Q 2023 once licenses have been granted.
Direct Lithium Extraction (DLE) Pilot Plant
A lab-scale DLE demo unit has been delivered to Copiapo, Chile and is being set up with the assistance of DLE processing partner SunResin.
A pilot plant DLE unit, a component of a full pilot plant to produce 1 tonne/month of battery grade lithium, has been ordered from SunResin's facilities in Belgium. Installation and commissioning is expected in 2Q 2023.
Board visit to Chile
CleanTech's Board visited Laguna Verde and Francisco Basin to meet drilling crews and see ongoing drilling of LV06. The company reported "very positive meetings" with key central and regional authorities to promote CleanTech Lithium and seek cooperation toward commencement of production at Laguna Verde in 2025.
CleanTech also met with SunResin representatives in Santiago to agree the forward programme on its plan to commence construction of the first 20,000 tonne/year lithium carbonate/hydroxide production facility at Laguna Verde in 2024. SunResin confirmed the plant can be delivered to the Shanghai port within 8 months of being ordered.
Aldo Boitano, CEO, elaborated: "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.
...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."
View from Vox
Overall, a very positive update from CleanTech Lithium, detailing significant progress on several fronts. The company's drilling campaign in Laguna Verde has recommenced, and an updated JORC resource estimate is expected by end of 1Q 2023, with a prefeasibility study expected in 2H 2023. Construction of the first 20,000 tonne/year LCE facility should commence in 2024, with production targeted for 2025.
At Francisco Basin, a scoping study is underway and expected to complete by 1Q 2023, with an updated JORC resource estimate from new wells FB02, FB03, and FB04 to follow by the end of 1H 2023. In October, CleanTech Lithium reported a maiden JORC resource estimate of 0.53m for Francisco Basin, bringing the total LCE resource across the company's two active projects to over 2 million tonnes LCE. The new wells should support a significant expansion in that resource estimate next year.
CleanTech is also adding a third asset at Llamara, offering significant exploration potential. The company is in the final stages of acquiring 119 new exploration licenses there covering an area of over 344 km2, with plans to commence drilling at Llamara in early 1Q 2023.
CleanTech's ongoing collaboration with SunResin for its DLE plant project is another important variable investors should pay attention to.
DLE or direct lithium extraction is a greener method of lithium extraction that minimises aquifer depletion and has a smaller geographical footprint than conventional evaporation brines. In addition to employing DLE methods, CleanTech is 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. For this reason, we recommend ESG-minded investors CleanTech Lithium.
CleanTech has already produced battery-grade lithium using DLE processes, and a pilot plant DLE unit is expected to commence operations in 2Q 2023. The pilot plant will have an expected feed rate of approx. 2.6m3 per hour and a planned output of 1 tonne of LCE per month. It is to be located at Maricunga, which is roughly an equal distance of c. 50km from both Laguna Verde and Francisco Basin.
As CleanTech develops its 3 assets in the lithium triangle, investors should note the aforementioned timelines and major upcoming events as they represent potential value inflection points for the growing company.
Based on results so far this year, CleanTech Lithium is well-positioned for continued growth in 2023. In the short amount of time since IPO in March, CleanTech has moved at a fast pace through its work programmes at Laguna Verde and Francisco Basin, and added a third asset at Llamara.
CleanTech has also indicated active interest in its projects from potential strategic or future offtake partners. CleanTech said it is in early-stage discussions with companies of "substantial scale", including car manufacturers, trading houses, battery manufacturers, and large mining companies.
Investors have rewarded the company for its efforts, sending shares up 27% since IPO.
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