3.10.22

CleanTech Lithium PLC ("CleanTech Lithium" or the "Company")

Francisco Basin - Maiden Resource Estimate of 0.53 Million Tonnes LCE at 305mg/L Lithium

Confirms Significant New Lithium Discovery - Chile

CleanTech Lithium's Total Lithium Resources Now Exceed 2 Million Tonnes LCE

CleanTech Lithium PLC (AIM:CTL), an exploration and development company advancing the next generation of sustainable lithium projects in Chile, announces a maiden JORC Inferred resource estimate at its Francisco Basin Lithium project, Chile.

Highlights

·    Maiden JORC Inferred resource estimate of 0.53 million tonnes lithium carbonate equivalent ("LCE") at a grade of 305mg/L

·    Estimate is based on the first well (FB01) completed before the Chilean winter break of a four well resource drill programme

·    FB01 encountered a brine aquifer from 99m to 311m, an aquifer thickness of 212m starting from relatively shallow depths

·    34 brine samples were collected from regular intervals with a peak lithium grade of 324 mg/L and an average grade of 305mg/L

·    Further three wells to commence in coming weeks to expand and upgrade the resource estimate to Measured and Indicated categories

·    Scoping Study will commence at Francisco Basin in Q4 2022 for an expected base case production rate of 20,000 tonnes LCE per annum

·    Francisco Basin is located within 100km of CleanTech Lithium´s more advanced Laguna Verde project (1.51 million tonnes LCE at a grade of 206mg/L lithium)

·    Total resources now exceed 2 million tonnes LCE at the two projects, which CleanTech Lithium is developing concurrently, as it targets producing battery-grade, carbon neutral lithium for the EU battery market.

Commenting, Aldo Boitano, Chief Executive Officer, of Cleantech Lithium PLC, said: "We are delighted with the maiden JORC Inferred resource estimate of 0.53 million tonnes of LCE at a grade of 305mg/L Lithium from our first well at Francisco Basin. The resource estimate provides the basis for a Scoping Study with a base case production rate of 20,000 tonnes of LCE per annum, expected to utilise 100% renewable energy for process power providing green lithium to the EV industry.  Two of our three projects in Chile now have resource estimates, with the total lithium resource exceeding 2 million tonnes LCE.

"Further upgrades are planned in 1Q 2023 based on fieldwork to commence in the next few weeks. We look forward to continuing to update the market on our progress."

Further Information

Project Background

Francisco Basin is located within 100km of the Company´s more advanced Laguna Verde project, as shown in Figure 1.  The project has excellent infrastructure with road access to the site and existing power and water supply lines traversing the project area.  There has previously been no lithium exploration drill hole completed at the project. Surface sampling indicated elevated lithium concentrations and a geophysics programme was undertaken which generated a low resistivity target zone of 10 - 15km², which was interpreted to be a hypersaline sub-surface aquifer. 

Figure 1: Location of the Francisco Basin Project

Resource Summary

The resource estimate is based on the results from the completion of the first well (well FB01) of an intended four well resource drill programme at the project.  The resource estimate is in the Inferred category under the JORC code.  Table 1 outlines the resource reported in accordance with the JORC Code (2012) and estimated by a Competent Person as defined by the JORC Code. As the Company's interest is 100%, the resources are stated both gross and net attributable.

Table 1: Francisco Basin Resource Estimate - September 2022

Increased and Upgraded Resource Estimate Planned for 1Q 2023

On completion of the three remaining wells in the programme, an expanded and upgraded resource estimate is planned. The drill programme is expected to remobilise in October 2022 and is targeted to be completed in late 4Q 2022 or early 1Q 2023.  This paves the way for a potentially significant expansion in the resource estimate in 1Q 2023.  Based on drill hole density the Francisco Basin resource estimate is expected to be upgraded into the higher confidence Measured and Indicated category, which will provide the basis for undertaking a Pre-Feasibility Study on the project.

Geological Setting

The Central Andes Altiplano salars form in closed topographic depressions at all elevations from 1,000m to over 4,000m above sea level. They generally represent the end result of a basin infill process that starts with erosion of surrounding relief, which deposits colluvial material, gravels, sheet sands, silts and clays. Alitplano salars are generally divided into mature halite salars and immature clastic salars, the later characterised by greater moisture regimes and a sediment profile with higher porosities. Francisco Basin is classified as an immature salar which features a hyper saline lagoon at the topographic low point of the basin.  

The Francisco Basin is an elongated shaped basin aligned on a NW-SE axis bounded on all sides by volcanic mountain ranges.  The surface or margin of the Laguna is at an elevation of approximately 4,136m. To the south-east the basin forms a gently rising plain which forms the focus area of the project.

Drilling Programme

A resource drill programme consisting of 4 wells was designed to test a 10 - 15km² target zone based on the interpreted extent of a low resistivity brine aquifer identified by a transient electromagnetic geophysics survey. The planned hole locations are shown in Figure 2. A drilling programme was undertaken from March to the end of May 2022, when the programme was suspended due to the onset of winter weather conditions.  Well FB01 was completed to a depth of 335m and FB02 reached 106.5m when the programme was suspended.

Figure 2: Francisco Basin Project Drill Programme Map

Drilling Method

The drilling programme utilized a reverse circulation flooded system. In well FB01, the well was drilled with a 20-inch diameter to the final depth, then an 8 inch diameter PVC casing was installed with silica gravel used to pack the casing.  The PVC casing is slotted over the depth interval of the brine aquifer.  This is a wide diameter well design which is suitable for the high-volume pump tests required for final feasibility level hydrogeological modelling, and ultimately for conversion to production bores in a commercial stage operation.

Fig. 3: Drill Rig at FB01, 2Q 2022

Stratigraphy of Completed Well

The stratigraphy of well FB01 features: from 0 - 140m a zone dominated by fine gravels and sands; 140m to 284m clays with subordinated sands and gravels; 284m to 311m sands with subordinated fine gravels; 311m to 317m intrusive rock composed by a Quartz monzonite. From 317m to 326m intercalations of clays, sands, gravel and intrusive rock, and from 326m to 335m andesitic rock with sands and clays correspondent to the basement.  This stratigraphy is further depicted in Fig. 4.  The water table was intersected from 20m depth with a fresh aquifer present from 20m to 99m, and a brine aquifer from 99m to the end of the hole.  At 180m the drilling intersected a pressurised brine aquifer that caused a breakage in the drilling head due to the high pressure.

Fig. 4: Stratigraphy of Well FB01

Brine Sampling Collection and Analysis

Brine was sampled with two methods, suction samples and bailer samples.  After completion of the well with 8-inch PVC and silica gravel, a well development process including purging the well of three well volumes of brine followed, then a minimum 5 day stabilisation period applied. Suction samples were collected via air lifting of samples into a 20-litre bucket. Samples were taken from every 3m.  This operation used a rig with a compressor as shown in Fig. 5.    Bailer samples were then collected by a specialist water sampling contractor, using a double valve bailer that is raised and lowered with an electric cable winch as shown in Fig. 6. Bailer samples were collected from every 6m.

  Fig. 5: Suction Sampling with Compressor           Fig. 6: Bailer Sampling using Electric Winch

Hole FB01 was completed to 335m encountering a brine aquifer from 99m to 311m, or an aquifer thickness of 212m.  The hole was cased and developed with samples collected every 6 metres, which were then delivered to ALS Chile.  The lithium grades of the 34 samples from FB01 ranged from 255 to 324mg/L, with an average grade of 305mg/L, as presented in Table 2 below. Samples were sealed in clean polyethylene bottles, labelled and package on site for shipment to ALS Life Science Chile laboratory in Santiago.  The suite of element analysis covered B, Ca, Cu, Li, Mg, K, Na, CACO₃, CL, SO4, TDS and Density.  A detailed QA/QC procedure was applied for sample collection and analysis.

Table 2 Brine Assays Received for FB01

Sediment Sampling and Specific Yield Calculation

To date no bulk sampling for porosity studies has been carried out. The specific yield (or effective porosity) has been inferred for the resource estimate, based on the geological logging of the sediment cuttings collected from FB01. The specific yield values assigned to each of the different logged lithologies were based on industry references as presented in Table 3 below.

Table 3: Assigned Specific Yield Values for FB01 Logged Lithologies

Note: Values from Morris & Johnson, 1967; Heath, 1987 and Huston et. al. 2011.

The lithological logging of FB01 is presented in Table 4 with major and minor lithologies labelled as lithology 1 and 2 respectively.  Applying the assigned specific yields based on Table 3, weighted by the logging for lithology unit of the brine aquifer column and then, weighted by the unit lengths, produced an overall inferred Specific Yield value of 12.16%, which is consistent with the basin lithology.

Table 4:  FB01 Specific Yield Weighted by Lithology Unit Lengths

Resource Model

The 3D resource model applied a 2.5 km area around well FB01, limited by the boundary of the Nevado Tres Cruces National Park to the south and the basin limit to the west, highlighted by the geological contact provided by the De La Laguna Hill volcanic rock and the foot hill alluvial deposits. The resultant radial area used in the model is shown in Fig. 7, which equals an area of 12.54 km².  Aquifer thickness is based on the intercepted brine aquifer in well FB01.  The well was completed to a depth of 335m with the brine aquifer intercepted from 99m and the first evidence of basement lithology encountered at 311m, resulting in an aquifer thickness of 212m. 

Fig. 7: Radial Area used in the Resource Model

Resource Calculation

The resource calculation is presented in Table 5. Aquifer volume is based on the radial area of 12.54 km² and aquifer thickness 211m resulting in a total volume of 2.67 billion m³. The specific yield applied to calculate effective volume is 12.2% inferred from the geological logging of the sediment cuttings from the well.  The lithium grade used in the estimate is based on the average of 34 samples collected from regular intervals from the aquifer, which ranged from 255 to 324mg/L, with an average grade of 305mg/L.  For the calculation of resources in Lithium Carbonate Equivalent, an industry standard 5.323 factor was applied to the Lithium mass.

Table 5:  Francisco Basin Inferred Resource Calculation

Competent Person

The information in this release relates to drilling results, geology, brine assays reports, sediment sampling / specific yield calculation and resource calculation are based on information compiled by Christian Gert Feddersen Welkner, who is an independent Qualified Person to the Company and is a Member of Comision Calificadora de Competencias en Recursos y Reservas Mineras Chile that is a 'Recognised Professional Organisation' (RPO). Mr Feddersen has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Feddersen consents to the inclusion in the press release of the matters based on his information in the form and context in which it appears.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Gordon Stein, Director and CFO.

Notes

CleanTech Lithium (AIM:CTL) 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 2024/2025, 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 lithium 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.

**ENDS**

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)