5th
November 2024
CleanTech Lithium PLC ("CleanTech Lithium" or
the "Company")
Laguna Verde Operational Update
CleanTech Lithium PLC (AIM: CTL, Frankfurt:T2N,
OTCQX:CTLHF), an exploration and development
company advancing sustainable lithium
projects in Chile, provides an operational update on progress with
the Laguna Verde pre-feasibility study ("PFS"), the 2024
exploration programme and Direct Lithium Extraction ("DLE") pilot
plant process work to produce battery-grade lithium
carbonate.
Highlights:
Laguna Verde PFS
Update
·
Location of preferred sites for carbonation plant in Copiapó and
port facilities for export of final lithium carbonate product have
been selected
· Power
supply study completed evaluating options for onsite renewables
which provides a competitive alternative to the base case of a
transmission line and grid connection
· Option
to utilise electric truck transport identified, lowers emissions
and noise pollution, and by hauling from high to low altitude
regenerative charging reduces power consumption
·
Decision to configure project based on locating DLE plant at Laguna
Verde and carbonation plant in Copiapó has numerous advantages
contributing to a more robust PFS
·
Engineering for this configuration has extended the expected PFS
delivery to Q1 2025
Exploration
Programme and Pilot Plant Updates
· Results
from two completed wells and pump tests for the 2024 field
programme have been received increasing knowledge of the resource
and providing additional information for the hydrogeological
model
·
Downstream processing work from our pilot plant is progressing well
with lithium carbonate production expected in November
Investor
webinar
· CTL to
host investor webinar on Tuesday 5th November at 17:00
GMT. Register here:
https://www.investormeetcompany.com/cleantech-lithium-plc/register
Steve Kesler,
Executive Chairman and Interim Chief Executive Officer, CleanTech
Lithium PLC, said:
"With the recent
announcement by the Chilean Government to prioritise six salt
flats, including Laguna Verde, to start the process of awarding
Special Operating Lithium Contracts (CEOLs), we are focused on the
key aspects to advance the project, being permitting, completion of
the PFS and production of battery grade lithium carbonate from our
pilot plant.
Progress has
continued on central elements of the PFS with evaluation of plant
location, power supply and transport options. As a leader in
developing DLE based projects in Chile, we aim to enter production
in 2027 when the lithium market is expected to rebalance, providing
a strong long term growth outlook."
Further
Information
Sites Selected for
Carbonation Plant and Port for Export of Final Product
As part of the ongoing PFS for the Laguna Verde
project, a trade-off analysis was completed which determined the
DLE plant and eluate concentration stages should be located at the
Laguna Verde site, and the carbonation plant at the nearby mining
centre of Copiapó. This was reported to the market on July 2,
2024. The re-configuration required a change in
pre-engineering design provided by Lanshen Technology, the Company
selected to provide the lithium processing plant design and
equipment. This has extended the expected PFS completion,
which was originally targeted for Q4 2024, into Q1 2025.
The Company has since undertaken studies to
determine the ideal location of the carbonation plant in Copiapó
and selected a site. After evaluating several options, a site
in an industrial zone which by-passes to the south-east of Copiapó
was chosen, as shown in Figure 1. This location has existing
power and water supply options and provides a direct route to
port.
Figure 1: Carbonation Plant Location
Map
Figure 2: Carbonation Plant Design Layout
A trade-off analysis was undertaken to evaluate
transport corridors and port facilities providing four different
options for export of final lithium product. The study indicated
that the nearby Caldera Port provides the most suitable option
either utilising existing infrastructure which is currently
utilised for seasonal shipment of agricultural products, shown in
Figure 3. Other port options are also available and may come
into consideration however Caldera Port is the current
preference.
Figure 3: Caldera Port Existing Facilities
Power Supply
Alternative of Onsite Renewable Generation
The Company engaged Chilean consultant Clean Power
Hunters to undertake a power supply study to evaluate the option of
using renewable power generated at the project site as an
alternative to the base case of a transmission line and grid
connection. Laguna Verde is located in the region with the highest
solar irradiance in the world, as shown in Figure 4. Analysis of
estimated Capex and Opex was provided based on different
configurations of onsite renewables, either solar plus a battery
energy storage system (BESS) or solar plus wind plus BESS. Figure 5
shows the lowest Capex corresponds to combining solar with three
wind turbines plus BESS.
Figure 4: Solar Irradiance Map
Figure. 5:
Solar + Wind + BESS Scenarios Capex Split
The Company has received proposals including from
major global solar plus BESS suppliers, consistent with the costs
estimated in the study and competitive with the grid connection
option. The financing model for both the grid connection model or
the alternative of onsite renewables is expected to be based on a
power purchase agreement and a build own operate basis by
established suppliers. These proposals will be built into the PFS
and the commercial analysis of the project.
Truck Transport
Study
Based on the outcome of the plant location study the
Company will transport 6% Li in solution post the DLE and
concentration stages at Laguna Verde to the carbonation plant. Use
of standard and electric trucks is being compared with the latter
providing several potential benefits in addition to cutting
CO2 emissions. Electric trucks are well suited to
hauling loads from high to low altitudes by taking advantage of
regenerative charging to reduce power consumption and required
battery capacity. Minimal noise and elimination of tailpipe
emissions is particularly attractive considering the transport
route traverses an indigenous community settlement approximately
100km from the project site, a community the company has been
working with closely.
The Company has gathered insight from several
potential suppliers. Chinese company XCMG is a leader in electric
trucks and is actively expanding its offering in Chile, with its
E7-49T model which has a haulage load of 49 tonnes potentially
providing a suitable option. The technology is evolving rapidly and
is expected to provide a strongly cost competitive option in line
with the project development timeline.
Figure. 6: XCMG´s range of electric transport
trucks Figure. 7: Paved Highway
to Laguna Verde
2024 Exploration
Programme Update
CleanTech Lithium´s 2024 drilling programme
anticipated to drill five new resource wells, as shown in Figure 8,
with the aim of upgrading the existing Measured and Indicated
resource into maiden Reserves for the Laguna Verde project.
The existing JORC compliant resource estimate of 1.8 million tonnes
of lithium carbonate equivalent (LCE) is based on six wells
completed in 2022 and 2023. The Company engaged Montgomery
& Associates Consultores Limitada ("Montgomery" or "M&A"),
a leading hydrogeological consultant, for the programme. During 1H
2024, two of the five resource wells were completed being LV07 and
LV11, along with three observation wells drilled to support
observations during pumping tests, before winter conditions
curtailed the programme in June 2024. The full 2024 programme is
paused until further funding is available following the Company´s
planned ASX fund raising and as a result Montgomery has produced an
interim report on work completed.
Figure 8: Laguna
Verde Drilling Wells Map - Show original figure
Drilling activities for exploration borehole LV07
reached a final depth of 650m below land surface. This well was
drilled with PQ3 diameter from land surface to 300m, and with HQ3
diameter from 300m to 650m. Packer samples were obtained during
drilling for 2-meter packer intervals and the volume of the well
was purged at least one time before obtaining the sample. Assuming
a lithium cut-off grade of 100 mg/L, the average lithium grade of
the packer samples corresponds to 139 mg/L with the well
encountering lower density water in the upper 150m.
In contrast to LV07, drilling at
LV11 did not reach the anticipated depth due to the presence of
hydrothermal waters (under pressure) which were encountered during
drilling, with a final depth of 412.8m below land surface. Assuming
a lithium cut-off grade of 100 mg/L, the average lithium grade of
the packer results would correspond to 131 mg/L. In general, it is
believed that lithium grades decrease below 220m at LV11 due to the
presence of dilute hydrothermal waters which were encountered
during drilling. The presence of hydrothermal waters in the eastern
portion of the Project are more dilute than the average lithium
grade measured in other exploration wells.
Figure 9: Drilling at LV07 in 1H 2024
Lithology and
Drainable Porosity
Based on core retrieved from
drilling, the most predominant lithology encountered corresponds to
a volcanic tuff with variable levels of consolidation and welding
based on the depth and location. As determined by relative brine
release testing at Geosystems Analysis (GSA) laboratory in Tuscon,
USA, drainable porosity values of collected core samples from LV07
and LV11 range from 0.3% to 9.2%, with an arithmetic average of
approximately 4%; this is considered by Montgomery to be reasonable
for the encountered lithologic units based on visual inspection of
the core.
Figure 10: Example of Drill Core from Exploration
Borehole LV11 (132 to 136m)
Hydrogeological
Evaluation
In addition to resource drilling, the 2024 campaign
aimed to complete pump tests to evaluate the feasibility of lithium
brine extraction for the Project and to also estimate aquifer
parameters. Prior to the winter break, three observation wells were
completed and initial variable rate step tests and a constant rate
flow test undertaken. The intended long duration pump tests at well
LV05 was not able to be completed, however a 7-day pumping test was
successfully completed at LV06. With data obtained to date,
Montgomery is able to continue refining the hydrogeological
modelling that will feed into the design of the extraction and
reinjection well fields for the PFS. A key aspect is to
ensure no impact on surface water bodies.
Recommendations and Next Steps
Based on the obtained results from
the 2024 exploration programme, recommended priorities for
continued exploration include additional drilling and testing in
the western portion of the Project concessions. A long-term pump
test at LV05 (as part of the planned reinjection test) will also
aid in demonstrating feasible extraction and reinjection to the
west of the basin. A long-term test at LV05 will also allow for a
better understanding of the hydraulic connection between the deep
and shallow aquifers in that area.
On the completion of the 5 well
programme as originally planned for 2024, the existing JORC
compliant resource estimate of 1.8 million tonnes will be updated
and a Reserve estimate will be calculated for the project.
The Reserve calculation is the economically mineable part of the
Measured and/or Indicated resource and this will be defined by the
PFS data demonstrating that extraction could reasonably be
justified. Progress continues on the PFS and the remaining
planned wells will be completed as funds are available following
completion of the planned ASX capital raising.
Pilot Plant
Update
Downstream conversion of concentrated eluate from
the Company´s pilot plant into battery grade lithium commenced last
week at the facilities of Conductive Energy in Chicago, USA.
The initial volume of 88m3 of concentrated eluate from
Laguna Verde, equal to approximately one tonne of lithium carbonate
equivalent ("LCE"), will be processed in four batches with the
first batch expected to produce a volume of battery-grade sample
product in November. With this product, the Company plans to engage
with strategic partners for product qualification.
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For
further information contact:
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CleanTech Lithium PLC
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Steve Kesler/Gordon Stein/Nick
Baxter
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Jersey office: +44 (0) 1534 668
321
Chile office:
+562-32239222
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Or via Celicourt
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Celicourt Communications
Felicity Winkles/Philip Dennis/Ali
AlQahtani
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+44 (0) 20 7770 6424
cleantech@celicourt.uk
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Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish/Asia
Szusciak
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+44 (0) 20 7628 3396
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Fox-Davies Capital Limited (Joint Broker)
Daniel Fox-Davies
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+44 (0) 20 3884 8450
daniel@fox-davies.com
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Canaccord Genuity (Joint Broker)
James Asensio
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+44 (0) 20 7523
4680
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Competent
Persons
The following professionals act as Competent Persons
(CPs), as defined in the AIM Note for Mining, Oil and Gas Companies
(June 2009) and JORC Code (2012):
Mike Rosko and Brandon Schneider of M&A are
Registered Members of the Society of Mining, Metallurgy, and
Exploration and have functioned as CPs for lithium brine projects
under Canadian, Australian, and United States technical reporting
standards. Their relevant experience includes:
· Mike
Rosko has been estimated lithium brine resources since 2010, and
has functioned as a CP for Lithium One's Sal de Vida project,
Millennial Lithium's Pastos Grandes project, Lithium Chile's Salar
de Arizaro project, NOA Lithium's Rio Grande project, Lithium
America's Cauchari project, Wealth Minerals' Salar de Ollague
project, Gangfeng's Mariana project, Eramine's Centenario/Ratones
project, Posco Lithium's Sal de Oro project, Pepennini's Salar de
Pular project, and others, and has prepared numerous third party
due diligence and independent geologist reports in Argentina,
Chile, and the United States.
· Brandon
Schneider specializes in lithium brine reserve estimates, variable
density flow modeling, and optimization of brine pumping in salt
flats of Argentina and Chile. He has functioned as a CP for the Sal
de Vida Project of Arcadium Lithium and Salar de Arizaro Project of
Lithium Chile and was responsible for the reserve estimate and
projected wellfield design. He also collaborates on the lithium
brine exploration phases, resource estimation, and due diligence
reviews for lithium brine projects.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL,
Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development
company advancing lithium projects in Chile for the clean
energy transition. Committed to net-zero, CleanTech Lithium's
mission is to become a new supplier of battery grade lithium using
Direct Lithium Extraction technology powered by renewable
energy.
CleanTech Lithium has two key
lithium projects in Chile, Laguna Verde and Viento Andino, and
exploration stage projects in Llamara and Arenas Blancas
(Salar de Atacama), located in the lithium triangle, a leading
centre for battery grade lithium production. The two most advanced
projects: Laguna Verde and Viento Andino are situated
within basins controlled by the Company, which affords significant
potential development and operational advantages. All four projects
have good access to existing infrastructure.
CleanTech Lithium is committed to
utilising Direct Lithium Extraction with reinjection of spent brine
resulting in no aquifer depletion. Direct Lithium Extraction is a
transformative technology which removes lithium from brine with
higher recoveries, short development lead times and no extensive
evaporation pond construction. www.ctlithium.com
**ENDS**
APPENDIX
Section 1 Sampling Techniques and
Data
(Criteria in this section apply to
all succeeding sections.)
| Criteria |
JORC Code explanation |
Commentary
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Sampling techniques
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· 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 representativity 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
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· Sub-surface brine samples were obtained using six different
methods: Packer sampling, PVC airlift sampling, disposable bailer
sampling, electric valve bailer sampling, HydraSleeve sampling, and
composite brine sampling during pumping tests.
· Brine water samples were taken from the surface of the lagoon,
in an 800 m sampling grid, including eight sampling duplicates at
random locations. The samples were taken from a 0.5 m depth, and
for positions with a depth above 5 m, a bottom sample was also
obtained.
· In the field, electrical conductivity and temperature were
measured for every sample with a Hanna Multiparameter device. All
materials and sampling bottles were first flushed with brine water
before being filled.
· For every sample, 2 liters of brine were obtained with a
1-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.
Electrical conductivity was measured for every sample with a Hanna
Multiparameter model HI98192. The last two samples that had similar
stabilized electrical conductivity values were identified as the
primary and duplicate samples.
· For the packer sampling, a packer bit tool provided by the
drilling company (Big Bear) was used. Once the sampling support was
sealed, a
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submarine nodules) may warrant disclosure of detailed
information.
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purging operation took place until
no drilling mud was detected. After the purging operation, a half
an hour waiting period took place to let brine enter to the packer
tool before sampling with a double valve bailer.
· Successive 1-liter samples were taken every 30 minutes with a
double valve bailer.
· Packer samples were obtained approximately every 18
m.
· PVC casing suction brine samples were extracted after well
development. Once the well was clean and enough water was purged
(at least three times the well volume), the PVC casing suction
samples were taken from bottom to top while the 2-inch PVC was
extracted from the well. A 20-liter bucket was filled with brine
and samples were obtained from the bucket once the remaining fine
sediments were decanted.
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Brine airlift samples were taken every 6
m.
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Disposable bailer samples were obtained by JCP
Ltda. specialists in water sampling. Samples were taken from the
interest depths with a double valve disposable bailer. The bailer
was lowered and raised with an electric cable winch to maintain a
constant velocity and avoid bailer valves opening after taking the
sample. A new bailer was used for each well.
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Disposable bailer samples were obtained every 6
m.
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In the first quarter of 2023, electric bailer
samples were taken from wells LV05, LV06, and LV02 after their
proper development. Depth-specific samples were obtained with a 1-
liter electric bailer. This sampling process was undertaken by
Geodatos specialists.
· On all sampling procedures the materials and
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sampling bottles were first flushed
with 100 cc of brine water before receiving the final
sample.
· Packer samples were taken in wells LV01, LV02, LV03, LV07, and
LV11. Airlift samples were obtained from wells LV01, LV04, LV05,
and LV06. Disposable bailer samples were taken in wells LV01 and
LV02. Electronic bailer samples were obtained from wells LV02,
LV05, and LV06. HydraSleeve samples were taken from LV04 and LV11.
Composite brine samples from pumping tests were taken at wells LV05
and LV06.
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Drilling techniques
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· 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).
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· Diamond drilling with a PQ3 diameter was used to drill wells
LV01 and LV03 to a depth of 320
m. Below that depth, the drilling
diameter was reduced to HQ3.
· At wells LV02 and LV04, diamond drilling with a PQ3 diameter
was used to their final depth.
· For both diameters, a triple tube core barrel was used for the
core recovery.
· Except for drillhole LV04, custom-made packer bits provided by
Big Bear were used to obtain brine samples.
· Drillholes LV01, LV02 and LV04 were cased with 3" PVC and
silica gravel. LV03 was not cased due to well collapse and tool
entrapment.
· Wells LV05 and LV06 were drilled using the flooded reverse
drilling method with a 14 ¾ inch diameter to their final depths.
Both wells were cased with 8-inch PVC and gravel pack.
· Diamond drillholes LVM05a and LVM06c were drilled with a HQ3
diameter from surface to the final depth. LVM05b was drilled with
Tricone 3 7/8" diameter from land surface to 41.5 m.
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· Diamond drillhole LV07 was drilled with PQ3 diameter from land
surface to 300 m, and with HQ3 diameter from 300 to 650
m.
· Diamond drillhole LV11 was drilled with PQ3 diameter from land
surface to 254 m with no recovery in the first 50 meters, and it
was drilled with HQ3 diameter from 254 to 412.85 m.
Development operations
· After PVC casing and silica gravel installation took place at
the exploration wells, a development process was undertaken to
ensure clean aquifer water was available during sampling. The well
development included injection of a hypochlorite solution to break
the drilling additives, and purging via airlifting of a minimum
three well volumes was undertaken to clean the cased well from
drilling mud.
· 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 was made
from top to bottom, injecting air with a hose inside the 2-inch PVC
and "suctioning" the water to emulate a reverse circulation
(airlift) system.
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Drill sample recovery
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· 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
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· Diamond core recovery was ensured by direct supervision and
continuous geological logging in the field.
· For wells drilled using the flooded reverse drilling method,
drill cuttings were collected in 10 kg sample bags for geological
logging and tests purposes. Direct supervision and continuous
geological logging were applied to ensure reliable recovery and
descriptions.
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occurred due to preferential loss/gain of fine/coarse
material.
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Logging
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· 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.
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· Geological logging took place continuously during drilling in
the field. Descriptions were done by CleanTech and
M&A.
· Logging forms were prepared prior to field work and were used
to ensure the same information and style was used regardless of the
field geologist.
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Sub- sampling
techniques and
sample preparation
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· 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
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During the brine batch preparation process, the
samples were transferred to new sampling bottles. Quality control
samples, including standards (internal standards composed of a
known stable brine), duplicates, and blank samples (distilled
water) were randomly included in the batch. After quality control
sample insertion, all samples were re-numbered before submitting to
laboratory. Before transferring each sample, the materials used for
the transfer were flushed with distilled water and were then shaken
to remove water excess, avoiding contamination.
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appropriate to the grain size of the material being
sampled.
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Quality of
assay
data and laboratory
tests
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· 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.
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Brine samples were assayed by ALS Life Science
Chile laboratory (ALS), for Li, K, B, Mg, Ca, Cu, and Na using the
ICP-OES method described on QWI-IO-ICP-OES- 01 Edition A,
Modification 0 EPA 3005A; EPA 200.2.
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·
For density measurements, the method described by
Thompson and Troeh Y "Los suelos y su fertilidad." 2002. Editorial
Reverté
S.A. Cuarta Edición. Págs.75-85,
was used.
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·
Chlorine determination was done based on Standard
Methods for the Examination of Water and Wastewater, 23rd Edition
2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión
B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.
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Total Dissolved Solid (TDS) determination was done
using the method described on INN/SMA SM 2540 C Ed 22,
2012.
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Sulfate was analyzed according to the method
described in INN/SMA SM 4500 SO4-D Ed 22, 2012.
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Duplicates were obtained randomly during brine
sampling. Also, blanks (distilled water) and standards were
randomly inserted during the laboratory batch
preparation.
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The 2022 standards were prepared by the
Universidad Católica del Norte, Chile using a known stable brine.
Standard nominal grade was calculated in a round-robin process that
included four laboratories. The ALS laboratory was validated during
the round-robin process.
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Check samples composed by standards, duplicates,
and blanks were inserted at a rate of
one for each 20 original samples
during the year 2022.
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After the year 2023, quality control samples were
inserted at a rate of one every 10 original samples. For the 2023
QA/QC process, a new set of standards was internally prepared using
200 liters of brine obtained from well LV02 during the development
process. Standard nominal lithium grade was calculated in a
round-robin process that included four laboratories.
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For the 2024 sampling campaign, duplicates,
standards, and blanks were utilized during brine sampling and were
submitted for analysis. Standards for the 2024 campaign were
prepared in the University of Antofagasta. Quality control samples
were inserted at a rate of approximately one every 10 original
samples.
Geophysics:
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To determine the lake bathymetry, a Garmin Echomap
CV44 and Eco Probe CV20-TM Garmin were used. The equipment has a
resolution of 0.3 ft and maximum depth measurement of 2,900 ft. The
bathymetry data was calibrated using a density of 1.14
g/cm3.
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For the TEM geophysical survey, a Zonge
multipurpose digital receiver model GDP-32 and TEM transmitter
model ZT-30 were used.
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For the first survey campaign in May 2021, a
coincident transmission/reception loop was utilized with 11 lines
and a 400 m separation. 167 stations where designated with a
100x100 m2 loop and four stations with a 200x200
m2 loop; a survey depth of 300 m and 400 m was reached,
respectively.
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For the second TEM geophysical survey in March
2022, 32 TEM stations were surveyed which utilized six lines and a
400 m separation. A coincident loop Tx=Rx of 200 x 200
m2
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allowed for the investigation to a
depth of 400 m.
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For the third TEM geophysical survey in January
2023, 14 TEM stations were surveyed with two lines and a 400 m
separation. A coincident loop Tx=Rx of 200x200 m2
allowed for investigation to a depth of 400 m.
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The equipment used for the gravity survey was a
Scintrex portable digital model CG-5 Autograv, "microgravity
meter", with a 0.001 mGal resolution as well as a tidal,
temperature, pressure, and automatic leveling correction
system.
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The topographic data measured during the gravity
survey was acquired with a double frequency differential
positioning equipment, brand CHC NAV, model I-80 GNSS, that
consists of two synchronized instruments, the first of which was
fixed at a known topographic station, and the other that is mobile
through the surveyed gravimetric stations.
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In January 2023, a gravity survey was made
consisting of 111 stations, with a separation of 200 m to 300 m,
and arrangement through four lines around the lagoon
area.
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Verification of sampling and assaying
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· 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.
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· The assay data was verified by M&A and C. Fedderson based
on the assay certificates.
· Data from bathymetry and geophysics was used as delivered by
Servicios Geológicos Geodatos SAIC.
· Geological logs were managed by the geology contractor GEOMIN
and were checked by the Competent Persons.
· Brine samples batches were prepared personally
by the competent person, JCP Ltda.,
Geomin SpA or according to Competent Person's instructions. All
data was stored in Excel files.
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Location
of data points
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· 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.
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· Sample coordinates were obtained with a non- differential
hand-held GPS unit.
· The bathymetry coordinates in Laguna Verde were obtained by a
Thales Navigation differential GPS system, which consists of two
GPS ProMark3 devices designed to work in geodesic, cinematic, and
static modes of high precision, where one of the instruments was
installed as a base station and the other on board of the
craft.
· The TEM geophysical survey coordinates were obtained with a
non-differential hand-held GPS unit.
· Drillhole collars were obtained with a non- differential
hand-held GPS unit. Positions were verified by the mining
concession field markings.
· Gravity stations were located with double frequency
differential positioning equipment, brand CHC NAV, model I-80 GNSS,
that consists of two synchronized pieces of equipment, one fixed at
a known topographic station, and the other mobile at the surveyed
gravity stations.
· The coordinate system is UTM, Datum WGS84 Zone 19S.
· 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.
· Location points were not surveyed at the Llamara and Atacama
concessions.
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Data spacing and distribution
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· 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.
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· The geochemical lagoon sample spacing was approximately 800 m,
covering the entire lagoon area.
· Packer brine samples were taken vertically every 18
m.
· PVC bailer samples (disposable and electric) were taken
vertically every 6 m.
· For bathymetry, two grids were used, one of 400 m and the
other of 200 m in areas where the perimeter has more
curves.
· For TEM geophysical surveys, the distance between stations was
400 m.
· For the gravimetric survey, the distance between stations was
200 - 300 m.
· The author believes that the data spacing and distribution are
sufficient to establish the degree of geological and grade
continuity appropriate for the Resource Estimate.
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Orientation of data in
relation
to geological
structure
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· 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.
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· The lagoon in Laguna Verde is a free water body and no
mineralized structures are expected in the sub-surface
deposits.
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Sample security
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· The measures taken to ensure
sample security.
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· All brine samples were marked and kept on site before
transporting them to the Copiapó city warehouse where the
laboratory sample batch was prepared and stored in sealed plastic
boxes. Subsequently, the Laguna Verde samples were sent via courier
to the ALS laboratory in Antofagasta. The transport of samples was
directly supervised by the Competent Person.
· ALS laboratory personnel reported that the
samples were received without any
problem or disturbance.
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Audits or reviews
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· The results of any audits or
reviews of sampling techniques and data.
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· The assay data was verified by M&A and C. Fedderson
against the assay certificates.
·
The July 2021 JORC technical report was reviewed
by Montgomery & Associates Vice President and CP Michael Rosko,
MS PG, SME Registered Member #4064687. 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, and 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).
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Hains concluded 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."
·
With respect to the exploration program,
Hains
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stated that "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".
·
With respect to specific yield, Hains stated that
"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. Hains 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.
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Section 2 Reporting of Exploration
Results
(Criteria listed in the preceding
section also apply to this section.)
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Criteria
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JORC Code
explanation
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Commentary
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Mineral tenement and
land tenure status
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· 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
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· In Laguna Verde, CleanTech, through Atacama Salt Lakes SpA,
has 66 pedimentos
constituidos which cover an area of 17,200 hectares, 7
solicitudes de mensura
which cover an area of 682 hectares, and 35 pertenencias which cover an area of
3,860 hectares. Lithium exploration can occur on each with the
exception of the pedimentos
constituidos where another mining company has
preference.
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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.
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· All concession acquisition costs and taxes have been
reportedly fully paid by CleanTech, and there are no claims or
liens against them.
· In Laguna Verde, CleanTech is also in the application process
for a Contrato Especial de
Operation de Litio (CEOL) from the Chilean Government, which
would grant them the sole right to explore and exploit lithium in
the basin.
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Exploration done
by other parties
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· Acknowledgment and appraisal
of exploration by other parties.
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· In Laguna Verde, exploration work has also been done by Pan
American Lithium and Wealth Minerals Ltda.
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Geology
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· Deposit type, geological
setting and style of mineralization.
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· Laguna Verde is a hypersaline lagoon that is classified as an
immature clastic salar. The deposit is composed of a surface brine
resource, including the brine water volume of the surface lagoon.
The sub-surface resource formed by brine water hosted in
volcano-clastic sediments that lie beneath the lagoon.
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Drill hole Information
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· 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
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· The following drillhole are in the WGS84 zone 19 S coordinate
system:
· LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.
Azimuth 0°, dip -90°, Length 474
m
· LV02 E 553,992 N 7,024,396 ELEV 4,354 m a.s.l.
Azimuth 0°, dip -90°, Length 339.4
m
· LV03 E 549,980 N 7,028,434 ELEV 4,402 m a.s.l.
Azimuth 120°, dip -60°, Length
547.5 m
· LV04 E 556,826 N 7,024,390 ELEV 4,350 m a.s.l.
Azimuth 0°, dip -90°, Length 311
m
· LV05 E 550,972 N 7,027,908 ELEV 4,355 m a.s.l.
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and this exclusion does not detract from the understanding of
the report, the Competent Person should clearly explain why this is
the case.
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Azimuth 0°, dip -90°, Length 434.6
m
· LV06 E 555,912 N 7,026,004 ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 405
m
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· LVM05a E 550,921 N 7,027,908 ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 221.5
m
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· LVM05b E 550,946 N 7,027,951 ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 41.5
m
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· LVM06c E 555,959 N 7,026,032 ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 40
m
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· LV07 E 552,561 N 7,025,296 ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 650
m
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· LV11 E 555,582 N 7,024,793 ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 412.8
m
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Data aggregation
methods
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· 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
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· For the surface brine results, no low-grade truncation or
high-grade capping has been implemented due to the consistent
nature of the brine assay data.
· For the sub-surface results, no low-grade truncation or
high-grade capping has been implemented in the presented
exploration data, however an average lithium grade of the packer
brine samples is also provided with an assumed cut-off grade of 100
mg/L due to potential processing requirements and cost
considerations.
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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.
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Relationship between mineralizati on
widths and
intercept lengths
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· 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').
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· In Laguna Verde, the relationship between aquifer widths and
intercept lengths are direct with vertical wells, however LV03 was
inclined with a dip of -60°.
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Diagrams
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· 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.
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· Locations of the Laguna
Verde Exploration Drillholes
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· Generalized Stratigraphic
Column for Laguna Verde Area (based on wells LV01 to
LV06)
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Balanced reporting
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· 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.
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· Reported exploration results have not been filtered based on
the exclusion of low or high grades. However, based on potential
processing requirements and cost considerations, an average lithium
grade for the packer brine samples is also presented with an
assumed cut-off grade of 100 mg/L.
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Other substantive exploration data
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· 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.
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· Pumping tests were conducted at wells LV05 and
LV06.
· A 50 hp submergible electric pump, and piping with flowmeters
were used for the pump tests. The tests consisted of a variable
rate pumping to verify the aquifer and pump capacity, as well as
subsequently constant rate (48-hour to 7-day) pumping tests to
obtain aquifer parameters and monitor observed water levels and the
extracted brine chemistry.
· In LV05, the pump was installed at 156 m and in LV06, at 150
m.
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Further work
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· The nature and scale of
planned further work (eg tests for lateral extensions or depth
extensions or large-
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·
Exploration drilling and testing will continue in
2025. Areas of additional exploration will include the western and
northern/northeastern
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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.
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portion of the current property
concessions. A future long-term pumping and reinjection test is
also planned in 2025.
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