Announcement • Apr 15
Cleantech Lithium plc Announces Positive Pre-Feasibility Study and Declares Reserves for Laguna Verde
CleanTech Lithium PLC reported the results of its independent Pre-Feasibility Study for the Laguna Verde project. The PFS demonstrates positive technical foundations and compelling economic outcomes of the Project at PFS level, marking a significant milestone in the Company's development pathway. Completing the PFS, which includes the first declared JORC (2012) compliant reserves, enables CleanTech Lithium PLC to accelerate engagement with potential strategic partners. The Company is now in a position to share the results of the PFS with selected parties after it was announced that CleanTech Lithium PLC and the Chilean Government agreed the contractual terms of the long-term Special Lithium Operating Contract for Laguna Verde, which is subject to final ratification by the Comptroller General's Office. The PFS demonstrates production of 15,000 tonnes per annum of battery grade lithium carbonate for an operating life of 25 years with positive economic performance based on the assumptions applied in the PFS. Pre-Tax NPV8 is USD 1,370 million and Pre-Tax IRR is 24.2%. Post-Tax NPV8 is USD 959 million and Post-Tax IRR is 21.2%. Capex (including contingency of 20.6%) is USD 748 million. Opex is USD 5,768 per tonne. Payback Period is 4 Years. The economic results are based on preliminary engineering and economic assessments and are subject to risks and uncertainties, including lithium price variability, process performance, permitting outcomes and project execution. The PFS, led by leading engineering firm Worley as study integrator and supported by additional independent specialists, bases the Project´s process design on a Direct Lithium Extraction technology with prior commercial deployment experience and a standard downstream process to final lithium carbonate product. The study demonstrates the Project's advantages with a high level of optionality for plant design and power supply, very high-water recovery, which is a critical path item for mining projects in Chile, and strong community engagement and environmental progress. The PFS was led by the study integrator, who coordinated the work of third-party consultants and information provided by the Company. Major third-party contributors to the study include Montgomery & Associates - Geology, hydrogeology, resources, reserve modelling and wellfield design; Xi-an Lanshen New Material Technology Company - Process design and engineering, process capital and operating cost estimates; Ad Infinitum - Process design review, flowsheet development and processing technical oversight (Competent Person - Processing); Benchmark Minerals Intelligence - Lithium product marketing studies; Worley - Project infrastructure engineering and infrastructure capital and operating cost estimates, construction planning and financial modelling. Process design inputs were developed by Lanshen and reviewed and integrated by Ad Infinitum, whose principal acted as the Competent Person responsible for processing. Worley´s role was focused on infrastructure, engineering, and cost estimation whereas Lanshen was primary responsible for process design. The PFS incorporates inputs from third-party specialists, including process design, hydrogeology and market analysis, which have been relied upon for the purposes of the study. The study integrator has not independently verified all third-party inputs and does not accept responsibility for such information. The Laguna Verde Project is located in the Atacama Region, Chile, at elevations exceeding 4,300 metres above sea level. The Project is situated approximately 265km east of the regional mining centre of Copiapó. A paved highway Route 31 which extends from Copiapó through to Argentina, runs through the project area. The proximity to the international border and established transport corridors supports logistics for equipment supply, reagent importation, and export of finished product. As part of the PFS process a plant location trade-off study was undertaken. The study resulted in the decision to locate the downstream Lithium Carbonation Plant in Copiapó, and the plant for the DLE and eluate concentration stages which produce a concentrated lithium chloride solution, at the Laguna Verde project site. This configuration greatly reduces the footprint at the project site, from power supply, storage, camp and plant facilities, along with construction phase and environmental impacts. With approximately 70% of the operational workforce employed at the carbonation plant, locating it in Copiapó provides major advantages in accessing a skilled workforce, along with existing infrastructure, power supply and other inputs. This carbonation plant could be expanded to process lithium chloride from additional future projects in the region. The proposed development for production of 15,000 LCE comprises two project sites: Laguna Verde Site - lithium chloride Production: lithium chloride production facility, brine extraction and reinjection wellfields, raw brine handling and DLE processing, concentration and purification to produce a transportable lithium chloride solution. Copiapó Site (conversion to 15,000 tonnes per annum battery grade lithium carbonate): lithium carbonate conversion facility, final product drying, micronizing and packaging. At the Laguna Verde project site brine is extracted from the production wellfield and pre-treated to control suspended solids prior to DLE processing. For the PFS, the Company selected the DLE adsorbent provided by Lanshen after extensive test-work on various adsorbents. Lanshen provides an alumina-based adsorbent which is the most commercially established DLE adsorbent, and it has been a leader in commercial deployment in the DLE sector. In the DLE process lithium is selectively recovered by passing the feed brine through columns filled with the adsorbent. The columns are arranged in a carousel system. Lithium is desorbed with demineralised water to produce a dilute lithium chloride eluate, which is subsequently upgraded through a staged purification and concentration circuit. At the Laguna Verde site the plant will produce a lithium chloride solution that is approximately 5.88% lithium, suitable for bulk transport to Copiapó for carbonate conversion. Depleted brine and process effluents are managed through integrated water recovery systems and reinjection into the basin aquifer to minimize net freshwater consumption and aquifer depletion. The key recovery parameters achieved at the Laguna Verde lithium chloride plant are: DLE lithium recovery: 90.0%; Membranes recovery (RO-NF-ED) + IX: 98.4%; lithium chloride Plant total recovery: 88.6%. The concentrated lithium chloride solution is transported to Copiapó and converted to lithium carbonate using soda ash carbonation at approximately 85°C. The conversion process includes carbonation reactor, solid-liquid separation, hot washing, drying and micronizing to meet.