Shares in junior explorer CleanTech Lithium (AIM:CTL) have soared almost 23% this week after the company published an operations update confirming a new lithium discovery at its Francisco Basin project in Chile.
The AIM-listed company’s shares are trading just short of 28 pence, up 22.77% since the start of the week.
Positive results from the brine assays
An independent laboratory based in Chile has analysed the brine samples taken at regular intervals from four wells in the Francisco Basin target zone and returned results showing a peak grade of 324 mg/L and an average grade of 305mg/L. Based on these findings CleanTech expects to produce a maiden JORC inferred resource over the coming weeks. The resource estimate will be expanded and upgraded to a Measured and Indicated Resource Estimate as a next step, the company said.The hole design was based on wide diameter bores with metal casing installed in the upper 20 metres. This design is suitable for the high-volume pump tests required for final feasibility level hydrogeological modelling, and eventually for the production bores in a commercial stage operation.
Francisco Basin is CleanTech Lithium’s new project and unlike its more advanced Laguna Verde project has not been drilled for lithium in the past. What works in its favour is not only a good quality deposit but also the fact that it has excellent infrastructure in the shape of good road access and existing power and water supply lines. Previous surface sampling had indicated a high concentration of lithium and now the drilling of the first of the four planned resource drill holes has been completed before the Chilean winter break in exploration activities.
More drilling planned for Q4 this year
Further drilling is scheduled for October this year and will continue at the location of the second drill hole which has already been drilled to a depth of over 106 metres. As part of the gathering of documents needed for the permitting stage the company is also undertaking baseline studies which will form the Environmental Impact Assessment (EIA).
The next step will also include a scoping study for the Francisco Basin project, due to start immediately after the scoping study for Laguna Verde has been completed. The upgraded Laguna Verde JORC estimate, which was initially meant to be completed by the end of July this year, was delayed by lab work issues in Chile and is also expected to be completed in the coming weeks. A pre-feasibility study is expected to start shortly after.
Baseline environmental studies for both Laguna Verde and Francisco Basin are already being handled by MYMA, a leading environmental management consultancy in Chile.
“We have completed the first resource drill hole at Francisco Basin and are very pleased with the lithium grades and aquifer thickness encountered, representing an important new discovery in the lithium sector. Drilling will recommence after the winter break to further expand and upgrade the resource estimate, while progressing key environmental and feasibility studies,” said Aldo Boitano, Chief Executive of Cleantech Lithium.
