Source - LSE Regulatory
RNS Number : 8983A
CleanTech Lithium PLC
30 May 2023
 

30 May 2023

 

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

Positive Pump Test Results Support Projects Brine Extraction Model

Brine Reinjection Test to Commence, First in Chile´s Lithium Sector

 

CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTC:CTLHF), an exploration and development company advancing next-generation sustainable lithium projects in Chile for the EV transition, shares results from important hydrogeological work with pump test programmes undertaken at Laguna Verde and Francisco Basin. This is followed by a brine reinjection test to commence at Laguna Verde, a first for the lithium sector in Chile.

 

Highlights:

·    Fixed duration pump tests completed at Laguna Verde (wells LV05 and LV06) and at Francisco Basin (FB01).

·    Pump tests provide key data for hydrogeological models including aquifer transmissivity, which is used to model bore field flow rates for brine extraction in a commercial operation.

·    Calculated transmissivity from the LV05 and LV06 pump tests support the bore field flow rates of 30L/s that were modelled in the Laguna Verde scoping study announced in January 2023.

·    The FB01 pump test recorded a high transmissivity that corresponds to a modelled flow rate of approximately 80L/s in a well designed for an operation stage project. 

·    This high flow rate will provide a positive input into the Francisco Basin Scoping Study which is progressing well.

·    The first of a two-stage brine reinjection test will commence imminently at Laguna Verde.

·    Brine reinjection into aquifers is a key advantage to Direct Lithium Extraction (DLE) operations and CleanTech Lithium is leading the sector in Chile with this test-work.

·    An update will be released shortly on the drill programme progress at all three projects, including the laboratory assay results for the 2023 programme at Laguna Verde, the final batch of which is expected to be received next week.

 

Aldo Boitano, Chief Executive Officer, of CleanTech Lithium PLC, said:

"I am delighted at the progress we are making on our extensive work programmes across our three different basins.

"The pump test results at Laguna Verde and especially at Francisco Basin surpassed expectations and with the commencement of the first-ever reinjection test in Chile just round the corner, this could be a game-changing moment for Chile´s lithium sector, a considerable move forward for the Company and the wider lithium industry to produce lithium with minimal environmental impact; what we refer to as 'green' lithium.

We will provide another update shortly on our drill programme results and progress at all three of our projects, which will be followed by updating the market on JORC upgrades from Laguna Verde, as well as JORC upgrades and the Scoping Study for Francisco Basin."

 

Further Information

 

Positive Results from Pump Test Programmes

CTL is in the process of building a hydrogeological model for the operating stage of the projects that will include the modelling of the extraction bore field. Pump tests provide key data for the hydrogeological model and are important milestones for brine-based resource projects.

Laguna Verde:

At Laguna Verde, fixed duration pump tests were undertaken at LV05 and LV06.  The wells are cased with a diameter of 8 inches which constrains the size of the pump and therefore the flow rate used in the pump test.  At LV05, a flow rate of 18L/s was used and based on the aquifer response, which is measured by the drawdown in the well and the recovery rate recorded in the well and piezometers located at 50m and 240m from the well, the aquifer transmissivity is calculated. At LV06 the test was run at a flow rate of 14L/s. Both wells recorded >80% recovery within 30 minutes and full recovery within 36 hours. 

Based on the flow rate and aquifer response a transmissivity for LV05 and LV06 was calculated as 27.1 m2 and 22.6m2 per day respectively. Based on the calculated transmissivity, the modelled flow rate for a commercial bore with a diameter of 14 inches is expected to be approximately 30L/s. This is in line with the flow rate of extraction bores used in the completed Scoping Study for Laguna Verde, announced in January 2023, providing important confirmation of the projects´ bore field extraction capacity.

 

Figure 1: LV05 Pump Test in Progress

Francisco Basin:

At the Francisco Basin project, a fixed duration pump test has been completed at FB01, a well cased with a diameter of 8 inches, with a flow rate of 19L/s utilised for the initial test. The aquifer drawdown was minimal and the recovery rate rapid, resulting in a high transmissivity calculation of 226m2 per day. Based on the calculated transmissivity of FB01, the modelled flow rate for a commercial bore with a diameter of 14 inches is expected to be approximately 80L/s. The aquifer at Francisco Basin is formed by multiple sand units confined by clay units, which is geologically interpreted to have a high potential aquifer transmissivity. This is a very positive result, well exceeding expectations, and will feed into the Francisco Basin Scoping Study that is currently advanced, with a comparatively lower number of bores required to extract the required volume of feed brine.

 

Figure 2: Pictures of FB01 Pump Test in Progress

 

Reinjection Programme to Commence - The First Reinjection Test in the Chilean Lithium Sector

For a DLE based project, the other key element of the project's hydrogeological model is the reinjection of spent brine into the subsurface aquifers of the basin. At Laguna Verde, and at Francisco Basin, the Company has a dominant tenure position in the basin allowing for extraction and reinjection of brine in different zones of the basin.  In the Scoping Study completed for the Laguna Verde project two sites were proposed for reinjection bore fields as shown in Figure 3. The primary basis for site selection is to limit the distance and elevation difference between the reinjection site and the DLE process plant, where spent brine will be pumped from, and a favourable site geology for subsurface sediments that will host the re-injection brine volume while providing a geological separation with the resource area. 

The Company´s primary hydrogeology consultant Gestion Ambiental SA (SGA), an international firm which operates across South America, has designed a two-stage brine reinjection test at Laguna Verde with the first stage planned to be undertaken in the coming weeks.  This will involve constant flow rate tests at different depths and pressures. Brine from LV06, which is on the east side of the basin, will be injected into well LV05, on the north-west side of the basin in the relative vicinity of the area of the basin where reinjection is planned, as shown in Figure 3. Downhole geophysics have been completed at LV05 and the well is expected to have a representative geology of the planned reinjection site.

 

 

Figure 3: Map of Stage 1 Test Bore Versus Planned Reinjection Sites

 

The second stage consists of long-term tests, in wells located at the planned reinjection site, to provide valid hydrogeological simulations of the brine reinjection operation. This data will provide important data for the hydrogeological model and the project's environmental impact assessment, one of the key final regulatory approvals required for a project. To the Company´s knowledge, this will be the first brine reinjection programme undertaken in the Chilean Lithium sector.  Major lithium producer Albemarle recently announced that it would start its first reinjection programme at Salar de Atacama, the world´s largest lithium production site, at the end of this year.  CTL aims to continue to be the leader in developing a brine reinjection model, a key to a successful DLE based project, in Chile.

 

 

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 AlQahtani

 

 

cleantech@celicourt.uk

 

Dr. Reuter Investor Relations

Dr. Eva Reuter

 

Harbor Access - North America

Jonathan Paterson/Lisa Micali

 

Porter Novelli - Chile

Ernesto Escobar

 

Beaumont Cornish Limited

(Nominated Adviser)

Roland Cornish/Asia Szusciak

 

+49 69 1532 5857

 

 

+1 475 477 9401

 

 

+56 2 2335 1693 

Ernesto@publicoporternovelli.cl

 

 

+44 (0) 207 628 3396

 

Fox-Davies Capital Limited

(Joint Broker)

Daniel Fox-Davies

 

Canaccord Genuity Limited

(Joint Broker)

James Asensio

Gordon Hamilton

 

+44 (0) 20 3884 8450

 

daniel@fox-davies.com

 

+44 (0) 207 523 4680

 

 

 

 

 

 

 

 

 

Notes

 

CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTC:CTLHF) 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 2026, with near-zero carbon emissions with minimal impact on the environment, offering the EV market a green lithium supply solution.

 

CleanTech Lithium has three prospective lithium projects - Laguna Verde, Francisco Basin and Llamara 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.

 

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 adsorbs 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**

 

 



 

Laguna Verde - JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

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

Sampling techniques

·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·    Aspects of the determination of mineralisation that are Material to the Public Report.

·    In cases where 'industry standard' work has been done 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 explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·    Lagoon samples correspond to water brine samples from the surface lagoon, in an 800 m sampling grid, including eight (08) sampling duplicates in random positions. The samples were taken from 0.5 m depth and, for positions with above 5 m depth a bottom sample were also obtained.
 

·    For every sample, two (02) liters of brine were obtained with a one-liter double valve bailer, using a new bailer for each sampling position. All materials and sampling bottles were first flushed with 100 cc of brine water before receiving the final sample.

·    Sub surface brine samples were obtained with four methods: Packer sampling, PVC Casing Suction sampling, PVC Casing Discardable Bailer sampling, and PVC Casing Electric Bailer.

 

·    For the Packer sampling, a packer bit tool provided by the drilling company (Big Bear) was used. Once the sampling support was sealed, a purging operation took place until no drilling mud was detected After the purging operation, half an hour waiting took place to 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 °C 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.

·      PVC Casing Discardable samples were obtained 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

·      Discardable Bailer samples were obtained every 6 m support to avoid disturbing the entire column during the sampling process. Conductivity-based TDS (Multi-TDS), Temperature °C and pH were measured for every sample with the Hanna Multiparameter

·      On first quarter of 2023 Electric Bailer samples were taken from wells LV05, LV06 and LV02, after it´s proper development. The samples were obtained from the interest depths with a one litter electric  bailer, that seals in the sampling support with an electric valve activated by the operator. This sampling process was made by Geodatos specialists. 


·    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 wells LV01, LV02 and LV03. PVC Casing Suction samples are available in wells LV01, LV04, LV05 and LV06. PVC Casing Discardable Bailer samples are available in wells LV01 and LV02. Electronic Bailer samples are available in wells LV02, LV05 and LV06.

 

Drilling techniques

·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·    On wells LV01 and LV03 diamond drilling with PQ3 diameter were used up to 320 m depth. Below that depth the drilling diameter was reduced to HQ3

·    On wells LV02 and LV04 diamond drilling with PQ3 diameter were used to their final depth 

·    In both diameters, a triple tube was used for the core recovery.

·    Packer bit provided by Big Bear was used to obtain brine samples (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

·    Wells LV05 and LV06 were drilled with Reverse Flooded method in 14 ¾ inches diameter to their final depth

·    Both wells, were cased and habilitated with 8-inch PVC and inert gravel  

Drill sample recovery

·    Method of recording and assessing core and chip sample recoveries and results assessed.

·    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.

·    Diamond Core recovery were assured by direct supervision and continuous geotechnical logging

·    For LV05 and LV06 only cuttings were recovered for geological logging purposes

Logging

·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·    The total length and percentage of the relevant intersections logged.

·    Continue geological and geotechnical logging took place during drilling

·    For the surface lagoon brine samples, Ph and Temperature °C parameters were measured during the sampling.

·    For the sub surface brine packer samples conductivity-based TDS and Temperature °C parameters were measured during the sampling

·    Samples taken on first 2023 quarter, conductivity-based TDS, Temperature °C and pH were measured during the sampling procedure

Sub-sampling techniques and sample preparation

·    If core, whether cut or sawn and whether quarter, half or all core taken.

·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·    For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·    Quality control procedures adopted for all 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.

·      During the brine samples batch preparation process, the samples were transferred to new sampling bottles. Standard (internal standard composed by known stable brine), Duplicates and Blank samples (distilled water) were randomly included in the batch in the rate of one every twenty original samples. After check samples insertion, all samples were re-numbered before submitted to laboratory. Before transferring each sample, the materials used for the transfer were flushed with distilled water and then shacked to remove water excess avoiding contamination. The author personally supervised the laboratory batch preparation process.

 

Quality of assay data and laboratory tests

·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·      During 2022, brine samples were assayed on ALS Life Science Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.

·      From year 2023 the samples were also assayed on ALS Life Science Chile laboratory by ICP-OES method, described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2, but now the full element suite was requested as recommended by Don Hains in his auditory  

·      Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85.




·      Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 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 0°C) to a corrected value of 1,660 m/s (1.14 g/cm3 density at 0°C), 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 and assaying

·    The verification of significant intersections by either independent or alternative company personnel.

·    The use of twinned holes.

·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·    Discuss any adjustment to assay data.

·    The assay data was verified by the author against the assay certificate.

·    Data from bathymetry and geophysics were used as delivered by Servicios Geológicos GEODATOS SAIC

·    Geological and geotechnical logs were managed by geology contractor GEOMIN and checked by the competent person

·    Brine samples batches were prepared personally by the competent person. All data are in EXCEL files   

Location of data points

·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·    Specification of the grid system used.

·    Quality and adequacy of topographic control.

·    Samples coordinates were captured with non-differential hand held GPS

·    The bathymetry coordinates were captured by differential Thales Navigation differential GPS 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 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 distribution

·    Data spacing for reporting of Exploration Results.

·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·    Whether sample compositing has been applied.

·    Geochemical lagoon samples spacing is approximately 800 m, covering the entire lagoon area

·    Packer brine samples were taken every 18 m

·    PVC Casing Suction samples were taken every 6 m

·    PVC Casing Bailer samples (discardable and electric) 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 in relation to geological structure

·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·    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.

·    The lagoon is a free water body and no mineralized structures are expected in the sub surface deposits

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 techniques and data.

·    The assay data was verified by the Competent Person 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. Hines 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.)

Mineral tenement and land tenure status

·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

·    CleanTech Lithium holds in Laguna Verde 2,437 hectares of Exploitation Mining Concessions that cover the entire lagoon area under an Option Agreement and 4,235 hectares of Exploration Mining Concessions outside the lagoon area.

·    All prohibition certificates in favour of Atacama Salt Lakes SpA were reviewed by the Competent Person. The Competent Person relies in the Mining Expert 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 other parties

·    Acknowledgment and appraisal of exploration by other parties.

·    Exploration works has been done by Pan American Lithium and Wealth Minerals Ltda.

Geology

·    Deposit type, geological setting and style of mineralisation.

·    Laguna Verde is a hyper saline lagoon that is 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 understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

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.

·    The following drillhole coordinates are in WGS84 zone 19 J Datum

·    LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.

·    LV02 E553,992 N7,024,396 ELEV 4,358 m a.s.l.

·    LV03 E549,980 N7,028,434 ELEV 4,402 m a.s.l.

·    LV04 E556,826 N7,024,390 ELEV 4,350 m a.s.l.

·    LV05 E550,972 N7,027,908 ELEV 4,335 m a.s.l.

·    LV06 E555,912 N7,026,004 ELEV 4,335 m a.s.l.

Data aggregation methods

·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·    The assumptions used for any reporting of metal equivalent values should be clearly stated.

·    For the Surface Brine Resource no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data

·    For the Sub Surface Resource a cut-off of 150 mg/l Li was applied in the above 4,112 m Block Model for resource reporting.

·    Only one auxiliary average composite sample from deepest seven (07) PVC Casing Bailer samples from well LV02 were used to calculate resources (Inferred) from 4,074 m a.s.l. to the basement level at 3,955 m a.s.l. in the LV02 drillhole near area

Relationship between mineralisation widths and intercept lengths

·    These relationships are particularly important in the reporting of Exploration Results.

·    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').

·    The relationship between aquifer widths and intercept lengths are direct, except in LV03 were a dip of -60° should be applied

Diagrams

·    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.

·    Addressed in the report

Balanced 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.

·    All results have been included.



Other substantive exploration data



·    Other exploration data, if meaningful and material, should be reported including (but not limited to): 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.



·    Pump tests were performed in wells LV05 and LV06.

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 48-hour pump test

·    In LV05 the pump was installed at 156 m and in LV06, at 150 m   

Further work

·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

 

·    Upgrade Inferred Resources to Measured + Indicated and Indicated Resources to Measured Resources

 

 



 

Section 3 Estimation and Reporting of Mineral Resources

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

Database integrity

·    Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·    Data validation procedures used.

·    Cross-check of laboratory assay reports and Database

·    QA/QC as described in Section 4.7

·    All databases were built from original data by the Competent Person

Site visits

·    Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·    If no site visits have been undertaken indicate why this is the case.

·    A site visit was undertaken by the Competent

Person from June 2nd to June 4th, 2021. The outcome of the visit was 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, that led to the September 2022 updated JORC Technical Report

·    The October 2022 to May 2023 drilling campaign was constantly supervised by the Competent Person

Geological interpretation

·    Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.

·    Nature of the data used and of any assumptions made.

·    The effect, if any, of alternative interpretations on Mineral Resource estimation.

·    The use of geology in guiding and controlling Mineral Resource estimation.

·    The factors affecting continuity both of grade and geology.

·    For the Surface Brine Resource, the interpretation is direct and there is no uncertainty.

·    For the Sub-Surface Resource, the geological interpretation was made based in the TEM study and gravimetry (SRK, 2011). The lithological interpretation was confirmed by the January - May 2023 diamond drillhole campaign.

·    Low resistivities are associated with sediments saturated in brines, but also with very fine sediments or clays. The direct relationship of the low resistivity layer with the above hypersaline lagoon raise the confidence that the low resistivities are associated with brines.

·    Drillholes confirm the geological interpretations

Dimensions

·    The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

·    For the Surface Brine Resource the lagoon dimensions are 14,682,408 m2 of area with depths ranging from 0 m to 7.18m with an average depth of 4.05 m

·    The Sub-Surface Brine Resource is a horizontal lens closely restricted to the lagoon perimeter with an area of approximately 55 km2 and depths for more than 300 m, from approximately 4,309 m a.s.l. to the basement level. 



Estimation and modelling techniques

 

 

·    The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·    The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·    The assumptions made regarding recovery of by-products.

·    Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

·    In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·    Any assumptions behind modelling of selective mining units.

·    Any assumptions about correlation between variables.

·    Description of how the geological interpretation was used to control the resource estimates.

·    Discussion of basis for using or not using grade cutting or capping.

·    The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

 

 

·      For the Surface Brine resource, the surface lake brine water volume is directly obtained by the bathymetry study detailed on Section 4.2.

·      Lithium (mg/l) samples values are in general 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 specific position, there is no point in estimate the lake lithium content via Kriging or other geostatistical method. The use of the total samples average value 245.794 mg/l was used for the Surface Brine Resource Estimation.

·      The Sub-Surface geological 3D model was built modifying the 50 m plans constructed for the September 2022 resource, considering the drillholes interceptions, the TEM geophysics continuity from all the available geophysical sections (in general < 4 Ohm-m zones). The constructed 3D model was clipped above the brine aquifer ceiling surface, formed by the first brine intercepts on the drillholes and also, below the basement surface that was constructed using the basement intercepts on drillholes LV01 and LV02 and structural geological information. This geological 3D model corresponds to the Sub-Surface Brine Ore Volume

·      Two block models were constructed for resource calculation due the different type of brine samples used for resource estimation, one above the 4,112 m a.s.l. and the other, below 4,112 ma.s.l.

·      The block model above level 4,112 m a.s.l. properties 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.
N° Columns: 72

N° Rows: 40
N° Levels: 36

Rotation: 20° Clockwise

·      The block model below level 4,112 m a.s.l. properties are:

Block size: 200 m x 200 m x 6 m.

Block Model Origin: 547,000 East, 7,026,000 North, Level 4,112 m a.s.l.

N° Columns: 72

N° Rows: 40

N° Levels: 35

Rotation: 20° 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

·    Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

·    Not applicable for brine resources

Cut-off parameters

·    The basis of the adopted cut-off grade(s) or quality parameters applied.

·    A cut-off of 150 mg/l Li was used to report resources 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 or assumptions

·    Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and 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 of the mining assumptions made.

·    Mining will be undertaken by pumping brine from production wells and re-injection

·    Pump tests were performed in wells LV05 and LV06

·      A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 48-hour pump test

 

·      In LV05 the pump was installed at 156 m and in LV06, at 150 m   

Metallurgical factors or assumptions

·    The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral 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.

·      The metallurgical capacity of lithium recovery in the process has been estimated at 85.2% to obtain lithium carbonate in battery grade.

·      The process of obtaining lithium carbonate considers the following stages:

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.

The spent solution (without Lithium) will be reinjected into the Laguna Verde salt flat.

The DLE process allows impurity removal waste to be minimal.

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. 

Ion exchange stages remove minor impurities such as magnesium, calcium, and boron to obtain a clean lithium solution.

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%.

The lithium carbonate obtained is washed with ultra-pure water to get it in battery grade with the minimum of impurities.

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.

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 analyzed 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 or assumptions

·    Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

·    The main environmental impacts expected is the main plant installations, estimated to be located at 8 km to the south west of the lagoon edge. In the near lagoon area, the impact is the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project development

 

Bulk density

·    Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·    The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

·    Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

 

·    Undisturbed diamond drillhole core samples with 3 to 5-inch length in both PQ and HQ diameter were obtained every 10 m from all drillholes for porosity testing.  Samples were prepared and sent to Daniel B. Stephens & Associated, Inc. laboratory (DBS&A) in New Mexico, USA. Samples underwent Relative Brine Release Capacity laboratory tests, which predict the volume of solution that can be readily extracted from an unstressed geological sample.  This method by itself is insufficient for calculating an effective porosity (specific yield) value for resource estimation as the laboratory test is performed on an unstressed core sample and doesn´t account for the host lithology geotechnical condition. To attain a more realistic specific yield value, the rock quality designator ("RQD") logged during the drilling was used with a regression analysis. This provided specific yield values that are consistent with the basin lithology.

Classification

·    The basis for the classification of the Mineral Resources into varying confidence categories.

·    Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·    Whether the result appropriately reflects the Competent Person's view of the deposit.

·    For the Surface Brine Resource, the data is considered sufficient to assign a Measured Resource classification

·      For the Sub-Surface Resources classification, the considered criteria were based on the recommended sampling grid distances of the complementary guide to CH 20235 code to report resources and reserves in brine deposits from the Comision Calificadora en Competencias en Recursos y Reservas Mineras, Chile.

·      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 Resource estimats.

·      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. Hines 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 accuracy/ confidence

·    Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·    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.

·    The estimated tonnage represents the in-situ brine with no recovery factor applied. It will not be possible to extract all of the contained brine by pumping from production wells. The amount which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers.

·    No production data are available for comparison

 

 

Francisco Basin - JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

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

Sampling techniques

·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·    Aspects of the determination of mineralisation that are Material to the Public Report.

·    In cases where 'industry standard' work has been done 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 explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·      After the FB01 well casing with 8-inch PVC and silica gravel, a development process took place. The well development includes an injection of a hypochlorite solution to break the drilling additives, enough solution actuation waiting time and then, purging of minimum three well volumes operation to clean the cased well from drilling mud and injected fresh water.
 

·      The developing process was made 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 (Air-Lift) system.

·      Once the well is verified, clan assuring that the purged water is brine coming from the aquifer, the PVC Casing Suction (Air-Lift) samples were 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.

·      One-liter Samples every 3 m were taken and, every 6 m sent to laboratory to preserve a second sample set for auditory purposes.
 

·      Conductivity-based TDS and T°C were measured in every sample with a Hanna Multiparameter. All materials and sampling bottles were first flushed with brine water before receiving the final sample.

·      After the PVC Casing Suction sampling in FB01, a stabilization period of minimum 5 days took place before proceed with the PVC Casing Bailer sampling to let the well match the aquifer hydro-chemical stratigraphy.

 

·      PVC Casing Bailer sampling process at FB01was 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.

 

·      PVC Casing Bailer samples were obtained every 6 m support to avoid disturbing the entire column during the sampling process. Conductivity-based TDS and Temperature °C were measured for every sample with a Hanna multiparameter.

 

Drilling techniques

·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·    Reverse flooded drilling system with 20 to 14 inch diameter was used in well FB01, FB02, FB03 (FB03A) and FB04.

 

·    FB01 was cased and habilitated from 0 m to its final depth 335 m with 8-inch PVC. FB02 was cased and habilitated from 0 m to its final depth 351 m with 4-inch PVC.

 

·    FB03 (FB03A), FB04 are in casing-habilitation process

 

·    FB04 is on drilling process

 

·    Diamond Drilling system with PQ3 and HQ3 diameters were used in FB05 and FB06

 

·    FB05 is on casing - habilitation process with 2 inch PVC and inert gravel

 

·    FB06 is on drilling process 

 

Drill sample recovery

·    Method of recording and assessing core and chip sample recoveries and results assessed.

·    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.

·    On Reverse Flooded Drilling system, cuttings and 10 kg sample bags were recovered for geological logging and tests purposes. Direct supervision and continue geological logging were applied to assure recovery

·    On Diamond Drilling system, diamond core recovery were assured by direct supervision and continuous geotechnical logging

Logging

·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·    The total length and percentage of the relevant intersections logged.

·    Continue geological logging took place during drilling

·    For all 2022 brine samples conductivity-based TDS and Temperature °C parameters were measured during the sampling

·    From 2023, for all brine samples conductivity-based TDS, pH and Temperature °C parameters were measured during the sampling
 

Sub-sampling techniques and sample preparation

·    If core, whether cut or sawn and whether quarter, half or all core taken.

·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·    For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·    Quality control procedures adopted for all 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.

·      During the brine samples batch preparation process, Standard (internal standard composed by known stable brine), Duplicates and Blank samples (distilled water) were randomly included in the batch in the rate of one every twenty original samples.

·      After check samples insertion, all samples were re-numbered before submitted to laboratory. The author personally supervised the laboratory batch preparation process.

 

Quality of assay data and laboratory tests

·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·      Brine samples obtained on 2022 were assayed on ALS Life Science Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.

·      From year 2023 all brine samples were assayed also on ALS Life Science Chile laboratory by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2, but now reporting the full element swift

·      Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85.

·      Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.

·      Total Dissolved 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 TEM Geophysical survey a Applied Electromagnetic Research FAST-TEM 48 equipment was used, composed by a transmitter and receiver unit, a PC and the circuit cables (buckle), with batteries as power source. A coincident transmission / reception loop of 220x220 m2 was used for the 98 surveyed stations, reaching a survey depth of 400 m
 
   

Verification of sampling and assaying

·    The verification of significant intersections by either independent or alternative company personnel.

·    The use of twinned holes.

·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·    Discuss any adjustment to assay data.

·    The assay data was verified by the author against the assay certificate.

·    Geophysics were used as delivered by Terra Pacific

·    Geological logs were managed by geology contractor GEOMIN and checked by the competent person

·    Brine samples batches were prepared personally by the author or by JCP Ltda., with the supervision of the author. All data are in EXCEL files   

Location of data points

·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·    Specification of the grid system used.

·    Quality and adequacy of topographic control.

·    Drillhole collars were captured with non-differential hand held GPS. Position was verified by topographic features Total station topographic capture of the drillhole collars is pending 

·    The TEM geophysical survey coordinates were captured with non-differential hand held GPS.

·    The coordinate system is UTM, Datum WGS84 Zone 19J

 

Data spacing and distribution

·    Data spacing for reporting of Exploration Results.

·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·    Whether sample compositing has been applied.

·    PVC Casing Suction brine samples were taken every 3 m and, sent to laboratory every 6 m

 

·    PVC Casing Bailer brine samples were taken every 6 m

·    For TEM geophysical survey a 750 m stations distance, in lines every 750 m were 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 in relation to geological structure

·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·    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 immediately transported them to Copiapó city warehouse

·    The brine water samples were transported without any perturbation directly to a warehouse in Copiapó city, where laboratory samples batch was prepared and stored in sealed plastic coolers, then sent via currier to ALS laboratory Santiago. 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 techniques and data.

·    The assay data was verified by the Competent Person against the assay certificate.

·    No audits were undertaken

 

 

Section 2 Reporting of Exploration Results

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

Mineral tenement and land tenure status

·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

·    CleanTech Lithium holds in Francisco Basin 12,579 hectares of Mining Concessions, separated in 6,479 hectares of Exploitation Concessions and 6,100 of Exploration Mining Concessions.

·    The Competent Person relies in the Mining Expert 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 other parties

·    Acknowledgment and appraisal of exploration by other parties.

·    No Lithium Exploration works has been done by third parties in the past

Geology

·    Deposit type, geological setting and style of mineralisation.

·    Francisco Basin are classified as the "Salar Marginal Facies" of a hyper saline lagoon that approaches to an immature clastic salar classification (Negro Francisco lagoon), with the lagoon corresponding to the "salar nucleus"

Drill hole Information

·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

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.

·    The following drillhole coordinates are in WGS84 zone 19 J Datum

·    FB01 E479,907 N6,959,310 ELEV 4,151 m a.s.l.

·    FB02 E483,350 N6,957,900 ELEV 4,164 m a.s.l.

·    FB03 E483,949 N6,959,090 ELEV 4,161 m a.s.l.

·    FB03A E483,835 N6,959,040 ELEV 4,160 m a.s.l.

·    FB04 E482,715 N6,956,410 ELEV 4,177 m a.s.l.

·    FB05 E482,000 N6,957,900 ELEV 4,159 m a.s.l.

·    FB06 E485,600 N6,957,900 ELEV 4,181 m a.s.l.

Data aggregation methods

·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·    The assumptions used for any reporting of metal equivalent values should be clearly stated.

·    No low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data

·    No data aggregate of any kind has been implemented

Relationship between mineralisation widths and intercept lengths

·    These relationships are particularly important in the reporting of Exploration Results.

·    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').

·    The relationship between aquifer widths and intercept lengths are direct

Diagrams

·    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.

·    Addressed in the report

Balanced 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.

·    All results have been included.

Other substantive exploration data

·    Other exploration data, if meaningful and material, should be reported including (but not limited to): 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.

·    Pump Test on FB01 well just finished

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 12-hour pump test

·    In FB01 the pump was installed at 159 m   

Further work

·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·    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. Pump Test on FB01 just finished and on FB04 is pending

·    Aquifer 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 aquifer recharge, and hence the brine recharge of the aquifer. SGA Hydrogeologist consultants are actually working on basins steady still model

 



 

Section 3 Estimation and Reporting of Mineral Resources

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

Database integrity

·    Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·    Data validation procedures used.

·    Cross-check of laboratory assay reports and Database

·    QA/QC as described in Sampling Section

Site visits

·    Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·    If no site visits have been undertaken indicate why this is the case.

 

·    Continue supervision of March to May 2022 drilling campaign.

·    Continue supervision on October 2022 to May 2023 drilling campaign

Geological interpretation

·    Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.

·    Nature of the data used and of any assumptions made.

·    The effect, if any, of alternative interpretations on Mineral Resource estimation.

·    The use of geology in guiding and controlling Mineral Resource estimation.

·    The factors affecting continuity both of grade and geology.

 

·    For the geological interpretation was made based in the TEM study and drillholes FB01 and FB02  

·    Low resistivities are associated with sediments saturated in brines, but also with very fine sediments or clays

·    Drillholes confirm the geological interpretations

Dimensions

·    The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

·    The Brine Resource is a horizontal lens with an area of 12.56 km2 (2.5 km radius around FB01) and 212 m wide

Estimation and modelling techniques

·    The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·    The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·    The assumptions made regarding recovery of by-products.

·    Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

·    In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·    Any assumptions behind modelling of selective mining units.

·    Any assumptions about correlation between variables.

·    Description of how the geological interpretation was used to control the resource estimates.

·    Discussion of basis for using or not using grade cutting or capping.

·    The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

·      Lithium (mg/l) PVC Casing Suction samples values are in general homogeneously distributed along the FB01 drillhole, there is no point in estimate the lithium content via Kriging or other geostatistical method given that there is only one drillhole. The use of the samples values average 305.04 mg/l Li was be used for the Brine Resource Estimation.

·      The geological units in the basin filling correspond to variable proportions of gravels, sands and clays These units have a moderately to very high porosity so, a conservative specific yield of 12.2% was estimated, depending on the logged proportions of its content

Moisture

·    Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

·    Not applicable for brine resources

Cut-off parameters

·    The basis of the adopted cut-off grade(s) or quality parameters applied.

·    No cut-off parameters were used

Mining factors or assumptions

·    Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and 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 of the mining assumptions made.

·    Mining will be undertaken by pumping brine from production wells and re-injection

·    Pump Test on FB01 well just finished

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 12-hour pump test

·    In FB01 the pump was installed at 159 m

Metallurgical factors or assumptions

·    The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral 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.

·    Direct Lithium Extraction technology (DLE) with spent brine reinjection is planned for Francisco Basin. Production Plant / Camp, production/reinjection wells, and brine mixing ponds are planned to install on the concession area.

Environmen-tal factors or assumptions

·    Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

·    The main environmental impacts expected is the Production Plant / Camp and the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project

Bulk density

·    Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·    The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

·    Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

·    Bulk density is not relevant to brine resource estimation.

·    For porosity a conservative specific yield of 12.2% was estimated, depending on the logged proportions of the sediments content

Classification

·    The basis for the classification of the Mineral Resources into varying confidence categories.

·    Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·    Whether the result appropriately reflects the Competent Person's view of the deposit.

·    For the brine Resource, the data and assumptions are only considered sufficient to assign an Inferred Resource classification

·    The result reflects the view of the Competent Person

Audits or reviews

·    The results of any audits or reviews of Mineral Resource estimates.

·    No audit or reviews were undertaken.

Discussion of relative accuracy/ confidence

·    Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·    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.

·    The estimated tonnage represents the in-situ brine with no recovery factor applied. It will not be possible to extract all of the contained brine by pumping from production wells. The amount which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers.

·    No production data are available for comparison

 

 

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