The Conversation (0)
Chariot Corporation (ASX:CC9) targets both hard rock lithium in Wyoming and claystone lithium in Nevada and Oregon. Its Black Mountain Project in Wyoming has shown significant mineralization with grades of up to 6.68 percent Li2O from rock chip samples. The company holds six other hard rock projects in Wyoming with 443 claims covering 3,585 hectares.
Chariot’s Resurgent project holds the second largest land position in the McDermitt Caldera, which hosts the two largest lithium resources discovered to date (Thacker Pass 19.1 million tons (Mt) lithium carbonate equivalent (LCE) and McDermitt 21.5 Mt LCE). The recent $650-million investment in Thacker Pass by General Motors indicates interest from automakers looking to secure a supply of battery raw materials. The McDermitt Caldera’s size and scale potential present an opportunity for Automotive OEMs, battery manufacturers and others to obtain large-scale supply to meet their growth plans.
Chariot has been actively focusing on creating value through the divestment of selected lithium assets. Four assets have been divested through sale and/or option agreements with publicly listed companies. These transactions, assuming the existing options are exercised, may generate up to an estimated US$5.1 million in cash and stock-based consideration, in addition to future royalty payments for Chariot. The company currently has four additional projects that may be potential divestment opportunities, including Lida and Amargosa (Nevada), Mardabilla (Western Australia) and Nyamukono (Zimbabwe).
The company believes its two core projects, Black Mountain and Resurgent, represent early, prospective lithium opportunities in the United States.
Company Highlights
- Chariot Corporation Limited is a mineral exploration company focused on discovering and developing high-grade and near-surface lithium opportunities in the U.S.
- Chariot holds the largest land position for lithium exploration in the U.S. with hard rock lithium and claystone hosted lithium exploration assets.
- The company commenced trading on the ASX in October 2023 after closing a highly sought-after and oversubscribed A$9 million initial public offering (which is in addition to A$14.8 million being raised privately to assemble the portfolio).
- It is currently focused on its two core projects in the US: (1) the Black Mountain Project, a hard rock lithium project located in Wyoming; and (2) the Resurgent Project, a claystone lithium project located in Oregon and Nevada.
- The Black Mountain Project has had two-rounds of rock chip sampling which resulted in 22 rock chip samples collected with 10 of these samples returning assay results greater than 2.00% lithium oxide (Li2O) with the highest value being 6.68% Li2O. The Resurgent Project has had multiple rounds of rock-chip sampling with 289 samples being collected and returning values as high as 3,865 ppm lithium. The initial surface rock-chip sampling programs demonstrate the presence of lithium mineralization at surface.
- In addition to the core projects, Chariot holds an exploration pipeline of six projects in Wyoming including Copper Mountain, South Pass, Tin Cup, Barlow Gap, Pathfinder and JC projects. These projects are prospective for hard rock lithium.
- The company’s portfolio includes several additional projects prospective for hard rock (Western Australia and Zimbabwe) and claystone lithium (Nevada, U.S.A.).
- Chariot also holds interests in several projects that have been either sold or conditionally divested through option agreements to publicly listed companies. These include assets such as Halo, Horizon, Lithic & Mustang, and the Western Australia Lithium portfolio. Each of the divested projects are operated by a publicly listed counterparty and depending upon the particular transaction, the projects generate additional revenue for Chariot in the form of future payments and royalties.
- Chariot offers investors exposure to the nascent and rapidly growing U.S. lithium market.
This Chariot Corporation profile is part of a paid investor education campaign.*
Click here to connect with Chariot Corporation (ASX:CC9) to receive an Investor Presentation
CC9:AU
Chariot Corporation Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Chariot Corporation
Investor Insights
Chariot Corporation presents a unique value proposition for seasoned investors, with its strategic ownership of the largest land package for lithium exploration in the US and a portfolio of non-core assets providing significant revenue opportunities.
Overview
Chariot Corporation (ASX:CC9) is the largest landholder for lithium exploration in the US. It has a strategy to target both hardrock lithium in Wyoming and claystone lithium in Nevada and Oregon. The flagship Black Mountain project in Wyoming has shown significant mineralization with grades of up to 6.68 percent Li2O from rock chip samples. Chariot’s six other hard rock projects in Wyoming span 443 claims covering 3,585 hectares.
The second flagship project, Resurgent, has the second largest land position in the McDermitt Caldera, which hosts the two largest lithium resources discovered to date (Thacker Pass with 19.1 million tons (Mt) lithium carbonate equivalent (LCE) and McDermitt at 21.5 Mt LCE). The recent $650-million investment in Thacker Pass by General Motors indicates interest from automakers looking to secure a supply of battery raw materials. The McDermitt Caldera’s size and scale potential present an opportunity for Automotive OEMs, battery manufacturers and others to obtain large-scale supply to meet their growth plans.
The automaker's EV targets and government policies banning new internal combustion engine (ICE) car sales could propel lithium demand to 3.7 Mt by 2030, according to projections from mining giant Albemarle. This implies a CAGR of more than 20 percent between 2022 and 2030.
As the world's demand for lithium continues to grow, Chariot's exploration and development efforts in the US are well-timed and offer investors exposure to the rapidly growing lithium market.
Chariot has been actively focusing on creating value through the divestment of selected lithium assets. Four such assets have been divested so far through sale and/or option agreements with publicly listed companies. These transactions can potentially generate up to an estimated US$5.1 million in cash and stock-based consideration, in addition to future royalty payments for Chariot. The company currently has four additional projects that may be potential divestment opportunities, including Lida and Amargosa (Nevada), Mardabilla (Western Australia) and Nyamukono (Zimbabwe).
The company believes its two core projects, Black Mountain and Resurgent, represent early, prospective lithium opportunities in the United States. Chariot has completed its phase 1 drill program at the Black Mountain project consisting of nine shallow holes, drilled from a total of 1,132 metres. The company plans to recommence exploration work at Black Mountain and engage in exploration activities at its six other lithium-caesium-tantalite pegmatite projects in Wyoming. Phase 2 drilling at Black Mountain will comprise 3,000 to 4,000 metres utilizing cost-efficient, man-portable rigs as a precursor to a larger truck-mounted drilling program.
Following the AU$9-million IPO, Chariot is now fully funded to execute its exploration plans over the next two years, of which nearly a significant proportion will be spent on the Black Mountain project.
Concurrently, the company plans to continue exploration activities at the Copper Mountain project, South Pass, Wyoming Regional and the Resurgent project to define targets for future drilling.
Chariot boasts a world-class team with strong track records in mining, exploration and the financial services sectors. The management has significant corporate and investment banking experience. Non-executive chairman Murray Bleach was formerly the CEO of Macquarie in North America, while the CEO, Shanthar Pathmanathan was an oil and investment banker with Macquarie and Deutsche Bank. On the geological side, Neil Stuart who is a non-executive director is a lithium industry veteran having previously founded Orocobre Ltd (which later merged with Galaxy Resources) to form Allkem Ltd, one of the largest lithium producers in the world. The exploration team is led by Dr. Edward Max Baker, a geologist with over 40 years of experience and several discoveries. He was the chief geologist at Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. The collective experience of the management team, from investment banking (with fundraising and M&A experience) to resource discoveries, will be useful in advancing the company’s core projects.
Company Highlights
- Chariot Corporation is a mineral exploration company focused on discovering and developing high-grade and near-surface lithium opportunities in the US.
- Chariot holds the largest land position for lithium exploration in the US with hard rock lithium and claystone hosted lithium exploration assets.
- The company commenced trading on the ASX in October 2023 after closing a highly sought-after and oversubscribed A$9 million initial public offering (which is in addition to AU$14.8 million being raised privately to assemble the portfolio).
- It is currently focused on its two core projects in the US: (1) the Black Mountain project, a hard rock lithium project located in Wyoming; and (2) the Resurgent project, a claystone lithium project located in Oregon and Nevada.
- Chariot also holds an exploration pipeline of six projects in Wyoming including Copper Mountain, South Pass, Tin Cup, Barlow Gap, Pathfinder and JC projects. These projects are prospective for hard rock lithium.
- The company’s portfolio includes several additional projects prospective for hard rock (Western Australia and Zimbabwe) and claystone lithium (Nevada, USA).
- Chariot also holds interests in several projects that have been either sold or conditionally divested through option agreements to publicly listed companies. Each of the divested projects are operated by a publicly listed counterparty and depending upon the particular transaction, the projects generate additional revenue for Chariot in the form of future payments and royalties.
- Chariot offers investors exposure to the nascent and rapidly growing US lithium market.
Key Projects
Black Mountain Project, Wyoming
County, approximately midway between Casper and Riverton, Wyoming. Chariot initially held a 91.9 percent stake in the project with 134 mining claims covering 878 hectares. In 2024, the company expanded the project with 218 contiguous claims resulting in a 206 percent increase in project tenure area. Black Mountain now comprises 352 claims covering 2,686 hectares of tenure which subsequently increased Chariot's ownership interests in its Wyoming lithium portfolio to 93.9 percent.
The project is well-serviced by existing roads and infrastructure. The claim area was acquired via claim staking of public land administered by the US Bureau of Land Management.
The project features large pegmatite outcrops at the surface with spodumene and tantalum mineralisation. Surface rock chip samples returned assays of up to 6.38 percent lithium oxide.
Black Mountain may represent a significant hard rock lithium opportunity in a tier-1 mining jurisdiction in the US. The asset features an excellent combination of geological factors, and a supportive regulatory regime and is located in a largely unpopulated part of Wyoming.
Resurgent Project, Nevada and Oregon
The Resurgent project is a claystone-hosted lithium project located in the McDermitt Caldera in Oregon and Nevada. The company owns a 79.4 percent stake in this project. The Resurgent project comprises 1,450 claims covering 12,128 hectares and is further subdivided into two principal claim areas, identified as ‘Resurgent North’ and ‘Resurgent East.’ Chariot has the second-largest land position in the McDermitt Caldera, which hosts two of the largest lithium mineral resources in North America, with a combined mineral resource estimate of over 40 Mt LCE - Thacker Pass at 19.1 Mt LCE and McDermitt at 21.5 Mt LCE.
The Resurgent North project targets the same sedimentary units that host Jindalee Resources' (ASX:JRL) McDermitt project with a mineral resource estimate of 21.5 Mt LCE. A surface sampling campaign at Resurgent North conducted in 2021 involving 289 samples returned values as high as 3,865 ppm lithium (over three times typical lithium claystone MRE cut-off grade). Of the 289 samples, 70 samples returned values greater than 100 ppm lithium, 20 samples returned values greater than 1,000 ppm lithium and 10 samples returned values greater than 2,000 ppm lithium.
The Resurgent East project targets the same sedimentary units that host Lithium Americas’ (NYSE:LAC) Thacker Pass lithium deposit (MRE at 19.1 Mt LCE). The similarity in geological characteristics with the two largest lithium deposits in the US further validates the potential for a large-scale high-grade lithium discovery at Resurgent.
Exploration Pipeline Projects
Besides the two core projects, the company has a pipeline of six lithium exploration projects comprising 443 claims and covering 3,585 hectares. Each of them is described below:
- Copper Mountain Project: The project is located ~80 kilometres northwest of Black Mountain in Fremont County, Wyoming. It comprises 83 mining claims covering 648 hectares. Copper Mountain has a long history of prospecting and artisanal-scale production having been historically mined for mica, feldspar, beryl, lepidolite and tantalite. The company has already identified multiple pegmatite target areas and has plans for a geochemical and ground magnetics survey in addition to geological mapping.
- South Pass Project: The project is located in Fremont County, Wyoming, and comprises 214 mining claims covering 1,750 hectares. This is a large and highly prospective project with an abundance of outcropping pegmatites that occur in swarms. The company notes the individual pegmatites at the project could range up to several hundred metres wide and several thousand metres long. There has been no prior exploration for hard rock lithium in the South Pass project area.
- Regional Wyoming Exploration Pipeline Projects: It comprises four hard rock lithium mining projects namely Tin Cup, Pathfinder, Barlow Gap and JC, comprising 146 mining claims covering 1,146 hectares.
- Barlow Gap Project: This project is located in Natrona County, Wyoming, and comprises 60 mining claims covering 501 hectares. This is an early-stage hard rock lithium exploration project with outcropping pegmatites on a northeast trend.
- Tin Cup Project: The project is located in Fremont County, Wyoming, and comprises 45 mining claims covering 376 hectares. There is a long history of exploration at The Tin Cup mining district dating back to 1907. The region has been known for small-scale mining for gold, copper and various gemstones including red jasper, ruby and jade. This is an early-stage hard rock lithium exploration project with outcropping pegmatites.
- Pathfinder Project: This is an early-stage hard rock lithium project located in Natrona County, and comprises 32 mining claims covering 234 hectares.
- JC Project: Located in Fremont County, Wyoming, the project comprises nine mining claim blocks spanning 75 hectares. This is an early-stage hard rock lithium exploration project that features several small excavation pits and outcropping pegmatite dykes.
Divestment Projects
Chariot has been actively focused on creating value via divestment of selected lithium assets in its portfolio, which includes the following assets: Halo (Chariot’s ownership 21.4 percent), Horizon (Chariot’s ownership 21.4 percent), Lithic & Mustang (ownership 21.4 percent) and the WA Lithium portfolio (Chariot was the 100 percent owner of this property prior to the sale to St George Mining Ltd). These divestments, once executed, can potentially generate more than US$5 million in gross proceeds (cash and stock-based consideration) for Chariot in addition to future royalty payments.
The company has identified four more projects for divestment: Lida project (Nevada), Amargosa project (Nevada), Nyamukono project (Zimbabwe), and Mardabilla project (Western Australia).
Management Team
Shanthar Pathmanathan – Managing Director
Shanthar Pathmanathan has 14 years of investment banking experience in the metals and mining, oil and gas and chemicals sectors. He was the CEO and managing director of Lithium Consolidated, an ASX-listed company, which had one of the largest portfolios of hard rock lithium exploration assets, globally. Before that, he held various investment roles with Deutsche Bank and Macquarie Group. He has a Bachelor of Laws from the University of Western Australia.
Frederick Forni – Executive Director
Frederick Forni is a senior finance professional with over 25 years of investment banking experience. He was a former senior managing director of Macquarie Holdings (USA) and held non-executive director roles with numerous Macquarie Group entities and GLI Finance Ltd. He holds a B.A. in economics from Connecticut College, a J.D., awarded cum laude, from Georgetown University Law Center and an LL.M. in taxation from New York University Law School.
Neil Stuart – Non-executive Director
Neil Stuart is an exploration geologist with over 40 years' of experience and is a member of The Australian Institute of Geoscientists and a Fellow of The Australasian Institute of Mining and Metallurgy. He was a founding director of Orocobre Limited, now Alkem (ASX:AKE). He has considerable experience across several commodities and was heavily involved in project delineation and acquisition in Australia, Mexico and Argentina. Over the last 20 years, he was involved with the exploration and commercial development of lithium projects. Stuart is on the board of numerous ASX-listed companies and is a graduate of the University of Melbourne (BSc.) and James Cook University (MSc.).
Dr. Edward Max Baker – Geological Consultant
Dr. Edward Max Baker is a Ph.D. geologist and a fellow of AusIMM. Baker has over 40 years of experience and has made several discoveries. Baker was chief geologist for Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. Baker was co-founder and previously a vice-president of exploration at New York Stock Exchange-listed Integra Resources (NYSE:ITRG).
Ramesh Chakrapani – Chief Strategy Officer
Ramesh Chakrapani has over 20 years of experience in the investment banking and alternative asset investing space. Of which, over 15 years were spent at The Blackstone Group where he was a managing director and a member of the Hedge Fund Solutions Special Situations Investing Group. Chakrapani has invested across a diverse set of industries, asset classes, geographies and liquidity profiles, and has represented The Blackstone Group on the boards of selected investments. He has a B.A. from Yale University.
David Bethke – Exploration Geologist
David Bethke is an exploration geologist with 6 years of experience working primarily in the Mountain West and Alaska regions of the United States, specializing in both gold and lithium deposits. During his career, he has worked closely with companies such as Jindalee and United Lithium to explore, sample, drill, and map lithium deposits hosted in both hard rock and claystone. In Alaska, he has worked in production for multiple well-known gold mining companies, including Coeur Mining and Northern Star Resources. David graduated cum laude from the University of Idaho with degrees in geology and Spanish.
Laguna Verde Resource Update
CleanTech Lithium PLC ("CleanTech Lithium" or "CleanTech" or the "Company") (AIM: CTL, Frankfurt:T2N), an exploration and development company advancing sustainable lithium projects in Chile, announces an updated resource estimate for its Laguna Verde project that has been included by the Chile Government as one of the six salar systems to be prioritised for development.
Highlights:
- The mineral resource estimate is updated from that reported in the RNS of 17 July 2023 based on additional exploration and pumping tests conducted in 2024
- The JORC (2012) compliant estimate was calculated by Montgomery & Associates ("Montgomery´"), a leading hydrogeological consultant highly experienced in lithium brine resource estimation
- The total updated resource is 1.63 million tonnes of Lithium Carbonate Equivalent (LCE), at a grade of 175 milligrams per litre (mg/l) lithium, of which 0.81 million tonnes is in the Measured + Indicated category at a grade of 178 mg/l lithium
- This current resource estimate is based on the proposed polygon area included in the Company´s recently submitted application for a Special Operating Contract for Lithium ("CEOL")
- The previous 2023 estimate which totalled 1.77 million tonnes LCE at an average grade of 200mg/l lithium was based on the previously proposed CEOL area under the old application regime that was larger covering the entire estimated resource of the basin.
- Lithium concentrations obtained in the 2024 campaign were below the average grade of other exploration wells impacting the average lithium grade of the resource
- Montgomery recommends three additional drillholes in the southwest, north and northeast to potentially increase the resource based on completed geophysics
- This updated measured and indicated resource estimate will be used in the pre-feasibility study (PFS) which is intended to underpin a maiden reserve estimate for the Laguna Verde project
Steve Kesler, Executive Chairman, CleanTech Lithium said: "The updated JORC-compliant resource estimate for the Laguna Verde project, independently determined by Montgomery & Associates, confirms a robust and significant resource of 1.63 million tonnes of Lithium Carbonate Equivalent (LCE), with 0.81 million tonnes in the Measured and Indicated category at an average grade of 178 mg/l lithium. Now with greater confidence in the resource, this comprehensive evaluation will form the basis for the Pre-Feasibility Study, scheduled for end of this quarter. This positions Laguna Verde as a highly promising direct lithium extraction (DLE) based project in the lithium brine sector and as a contributor to Chile's future as a leading lithium producer for the global EV and battery market."
Further Details:
Project Background
The Laguna Verde corresponds to a lithium brine deposit which is found in the Atacama Region of Chile, near the Chile - Argentina border. The project consists of mining concessions located approximately 192 kilometres (km) northeast of Copiapó. The concession area is readily accessible via a network of paved roads from the closest major city Copiapó, following the route (R-31) for approximately 275 km. The Laguna Verde Basin has elevations that vary between 4,330 to 4,500 metres above sea level (masl), where the low altitude valley area is approximately 20 km long and 4 km wide.
Figure 1: Regional Location Map and Project Area
The previous resource estimate for Laguna Verde was reported in July 2023, based on five wells completed in 2022 and 2023. A drill programme was undertaken in 1H 2024 which completed two infill wells in the first half of 2024 along with three observation wells drilled to support observations during pumping tests. The location of wells completed from 2022 - 2024 are shown in Figure 2, along with three recommended wells to potentially increase the resource.
 |
Figure 2: Existing and Recommended Exploration Wells at Laguna Verde
Resource Summary
Montgomery was engaged to support the 2024 field programme at Laguna Verde and based on the information obtained to provide an updated resource estimate and technical report for the project. The technical report has been prepared to conform to the regulatory requirements of the JORC Code (2012). Mineral Resources are also reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines (CIM, 2012).
The breakdown of the resource categories comprising the total resource estimate and the comparison with the previous 2023 estimate is shown below in Table 1. The previous 2023 estimate which totalled 1.77 million tonnes LCE at an average grade of 200 mg/l Lithium was based on a proposed CEOL area that was larger and covered the entire estimated resource of the basin, whereas the updated 2025 estimate is based on the Company's preferential licences and proposed polygon area included in the Company´s recently submitted application for a CEOL. As a comparison, the current resource estimate for the basin (on the same basis of larger CEOL area) would be 1.95 million tonnes LCE.
Lithium concentrations obtained in the 2024 campaign were below the average grade of other exploration wells impacting the average lithium grade. Although slightly lower than the lithium grade used in the 2023 scoping study a grade of 175 mg/l lithium is very suitable for the DLE process and is well above the cut-off grade of 100 mg/l lithium.
Table 1: Updated JORC Resource Estimate 2025 Compared to 2023 Resource Estimate
Special Operating Contract for Lithium (CEOL)
In April 2024 the Chilean government announced, as part of its National Lithium strategy, the intention to make available to the private sector CEOLs over 26 salt flats. As of September 2024, the Chilean government has prioritised six salt flats for the CEOL award process, one of which is Laguna Verde. The CEOL grants exclusive rights to exploit lithium and only one CEOL is to be granted per saline system. The Government also published a polygon CEOL area for each of the prioritised salt flats but clarified that this polygon area is referential and could be modified following community dialogue and with agreement of the applicant. The Government also announced that the CEOL could be awarded in a streamlined procedure that allowed direct negotiation with Government rather than through a public tender provided that a number of criteria were met. One criteria was that the applicant must demonstrate that it holds at least 80% of the preferential mining licences in the CEOL polygon.
CleanTech Lithium has proposed a modification to the published CEOL polygon in its CEOL application (shown in Figure 3) which has been developed to ensure that over 80% of the proposed CEOL polygon area is preferential mining licenses held by CleanTech. The CEOL application by CleanTech includes letters of support from indigenous communities for the proposed modified CEOL polygon.
Figure. 3: CleanTech´s Preferential Licences and Proposed CEOL Extent
Table 2 provides a breakdown of the current Laguna Verde resource estimate by resource category and by separating the resource attributable to the preferential licences held by the Company, and the provisional resources in licences held by third parties within the proposed CEOL area. The combined resource would be attributable to the Company provided the CEOL is awarded to CleanTech for the proposed area (Figure 3).
Mineral resources are not mineral reserves and do not have demonstrated economic viability. Furthermore, not all mineral resources can be converted into mineral reserves after application of the modifying factors, which include but are not limited to mining, processing, economic, and environmental factors.
Table 2: Mineral Resource Estimate for the Laguna Verde Project (Effective January 3, 2025)
Resource Estimation Method
The updated resource estimate consists of Measured, Indicated and Inferred resources. A detailed geological and resource block model was creating in Leapfrog (Seequent, 2023) using obtained well lithologies, discrete-depth values for brine chemistry, drainable porosity values, and geophysical profiles. Lithium concentrations were interpolated using ordinary kriging, specific yield was assigned to each hydrogeological unit, and the mass calculations within the resource block model were undertaken using the Leapfrog Edge extension. A cut-off grade of 100mg/l lithium was conservatively applied based on the Laguna Verde scoping study capital and operating costs.
Consistent with the Houston et al. (2011) recommendations for immature salars, a 1.25 km radius circle around the well was used to estimate a Measured resource, a 2.5 km radius circle around the well was used to estimate an Indicated resource, while a maximum 5 km radius circle was used as the areal extent to estimate an Inferred resource. Depending on the confidence in the sampling procedures and presence of volcanic outcrops, some resource polygons were limited in extent.
Surface Rights
In Chile, Surface Access Rights should be granted or imposed on a mining concession before the extraction starts. CleanTech Surface Access Rights request was received by Bienes Nacionales on June 16, 2023, in the name of Atacama Salt Lakes SpA and is currently in process. The requested area totals 11,136 hectares and covers the project scoping study planned installations (Ad Infinitum, December, 2022). The requested area can be seen in Figure 4.
 |
Figure 4. CleanTech's Requested Surface Right Area
Water Rights
There are surface water courses that contribute to the Laguna Verde. The Peñas Blanca River flows from west to east and has a continuous flow throughout the year, while to the east of the Laguna Verde, there are intermittent surface water flows. Freshwater exploration wells also exist in the western portion of the basin with demonstrated pumping rates that exceed 40 L/s (Hydro Exploraciones, 2020). Furthermore, a conceptual water balance of the basin recharge has been prepared and indicates that the average estimated freshwater recharge in the Laguna Verde Basin corresponds to 570 l/s (M&A, 2024a). Potential sources of freshwater for the Project include the application for groundwater rights in the basin or the purchase of water rights from third parties (CleanTech, 2024).
Geological Setting
The regional geology of the Project area is mainly characterised by volcanic and sedimentary sequences. Laguna Verde is an immature clastic salar basin, with the lagoon effectively corresponding to the evaporative "salar nucleus". The Project consists of a lithium-rich aquifer found below the lagoon and in the surrounding sediments. The brine is mainly hosted in volcaniclastic sediments and tuff beneath the lagoon with a moderate hydraulic conductivity.
The Laguna Verde stratigraphy is characterised by a band of tuffs with different grain sizes, consolidation / welding, type of clasts, and locally interbedded volcaniclastic sediments. This unit presents an average thickness of 400 metres and overlays the lower volcanic rock (mainly andesite) identified in drillholes and the gravity survey, which has some fracturing and a low drainable porosity. Furthermore, a fault zone which has highly fractured and brecciated rock was encountered along the southern portion of Laguna Verde. In all, the brine aquifer was characterised up to a maximum depth of 650 metres (LV07).
Figure 5 shows the locations for two NW-SE hydrogeological cross sections, and Figure 6 shows the sections with the hydrogeological units modelled in the Leapfrog software.
Figure 5: Hydrogeological Cross Section Locations
Figure 6: Hydrogeological Cross Sections
Exploration
CleanTech engaged Geodatos to conduct Transient ElectroMagnetic (TEM) geophysical surveys at Laguna Verde during the periods April to May 2021 and again in March 2022. The objective of these surveys was to determine the electrical properties of the subsurface sediments to provide information about the stratigraphy and water quality of the hydrogeologic units in the area. The surveys also helped determine the water table level and helped confirm the presence of brine.
A gravity survey was performed by Geodatos between the end of December 2022 and early January 2023. The survey campaign included TEM measurements and two extra profiles. One hundred and eleven (111) gravity stations, arranged in four lines surrounding the lagoon area, as well as fourteen (14) TEM stations, arranged in two lines, were surveyed with a 400-metre separation.
Figure 7: Laguna Verde Surveyed Gravity and TEM Stations
Drilling
An initial drilling campaign was conducted in 2022 and 2023 with four diamond drill holes (DDH) (LV01, LV02, LV03 and LV04) and two rotary wells (LV05 and LV06) as shown in Figure 2. A second campaign was conducted in 2024, with Montgomery personnel, where two exploration boreholes were drilled (LV07 and LV11) with monitoring wells for subsequent pumping tests at LV05 and LV06. Drilling at boreholes LV07 and LV11 reached a final depth of 650 metres below land surface (mbls) and 412.8 mbls, respectively. A pumping test at LV05 was initially conducted in the first campaign and included a pre-test and a 48-hour constant discharge test on April 8, 2023. During the 2024 campaign, a step-discharge and a constant-discharge were conducted at LV05, but due to adverse weather conditions, a long-term constant rate test could not be completed. During the first campaign, a pre-test and a constant discharge test were conducted at LV06 and a long-term (7-day) constant rate test was conducted during the 2024 campaign.
Table 3: Location and Depth Drilled for Years 2022, 2023 and 2024 Exploration Wells
Well | Drilling Method | Northing | Easting | Total Depth Drilled (m) | Year Drilled |
LV01 | DDH | 7,027,088 | 549,432 | 474 | 2021-2022 |
LV02 | DDH | 7,024,396 | 553,992 | 339 | 2022 |
LV03 | DDH | 7,028,434 | 549,980 | 547.5* | 2022 |
LV04 | DDH | 7,024,390 | 556,826 | 311 | 2022 |
LV05 | Rotary | 7,027,908 | 550,972 | 434.6 | 2022-2023 |
LV06 | Rotary | 7,026,004 | 555,912 | 405 | 2023 |
LVM05a | DDH | 7,027,908 | 550,921 | 221.50 | 2024 |
LVM05b | DDH | 7,027,951 | 550,946 | 41.5 | 2024 |
LVM06c | DDH | 7,026,032 | 555,959 | 40 | 2024 |
LV07 | DDH | 7,025,296 | 552,561 | 650 | 2024 |
LV11 | DDH | 7,024,793 | 555,582 | 412.8 | 2024 |
*LV03 was drilled as an angled borehole with an azimuth of 120 degrees and dip of 60 degrees.
Figure 8: Drilling at LV07 in 1H 2024
Brine Sampling Collection and Analysis
Various methods were used to obtain brine samples during and after the exploration drilling program:
- Packer sampling
- Airlift sampling
- Double-valved disposable bailer sampling
- Double-valved electric bailer sampling
- Hydra-sleeve sampling
- Brine sampling during pumping tests
The brine sampling program included standard quality assurance/quality control (QA/QC) elements such as including duplicate brine and blank samples in bine sample batches sent to the laboratory. Formal traffic reports and chain of custody documents were prepared for every sample obtained and submitted for laboratory analysis. In the opinion of the Competent Person (CP), sample preparation, security, and analytical procedures were acceptable for this stage of the Project and results from the laboratory analyses are considered adequate.
Drill Core Sampling and Specific Yield Estimation
During the first campaign, core samples were obtained every 10 metres from the four drillholes and a total of 122 core samples were obtained at each drillhole and submitted to the DBS&A Laboratory in New Mexico, USA for Relative Brine Release Capacity (RBRC) tests. During the second campaign (2024), 33 core samples were obtained from LV07 and LV11 and were sent to GeoSystem Analysis (GSA) laboratory in Tucson, USA, for analysis.
Figure 9: Example of Drill Core from Exploration Borehole LV11 (132 to 136m)
Laboratory values for drainable porosity were obtained from 145 successfully analysed core samples. Core samples underwent Relative Brine Release Capacity (RBRC) tests. The drainable porosity (i.e., specific yield) measurement procedure involved saturating the core sample with a brine solution and placing them in test cells where a pressure differential was applied and the proportion of brine which can be drained was estimated. In the opinion of the CP, sample preparation, security, and analytical procedures were acceptable and results from the laboratory analyses are considered adequate for resource estimation. The 2023 resource estimate included drainable porosity measurements which were increased by a secondary porosity term calculated from rock quality designation logged during drilling. This current resource update uses drainable porosity measurements from the laboratory, without modification, which results in lower drainable porosities than used in the 2023 resource estimate.
The average drainable porosity values assigned to each hydrogeologic unit used to estimate the lithium resource are given in Table 3. Due to its smaller dataset, a simpler analysis was undertaken for drainable porosity to assign representative values by hydrogeological unit; constant (average) values were assigned to each hydrogeologic unit in the resource model, and drainable porosity values were not interpolated.
Table 3: Assigned Drainable Porosity Values for Laguna Verde Hydrogeological Units
Hydrogeological Unit | Average Drainable Porosity* | N° Samples |
Unconsolidated Tuff and Coarse Tuff | 6% | 102 |
Consolidated Ash Tuff | 3% | 14 |
Brecciated and Fractured Rock | 5% | 9 |
Lower Volcanic Rock | 1% | 5 |
Upper Alluvium and Colluvium | 10%** | 0 |
Surficial Volcanic Deposits | 3%*** | 0 |
* Rounded arithmetic average
** Assumed theoretical value
*** The drainable porosity of the consolidated ash tuff unit was assumed due to its lithological similarity. The number of blocks that correspond to the consolidated ash tuff within the resource block model are negligible compared to the rest of the hydrogeological units.
Recommendations
Currently, the drilling and testing of a reinjection well is planned for the first quarter of 2025. In terms of the resource, three additional diamond drillholes in the southwest, north, and northeast are recommended to potentially expand the resource volume (Figure 2; LV08, LV09, and LV10) based on the conducted geophysics. During the drilling of those three additional diamond drillholes, depth-specific brine and drainable porosity sampling are recommended with the corresponding QA/QC measures.
Block Model Results and Verification
Figure 10 presents the shallowest interpolated concentrations of the brine body which were mapped to the Leapfrog block model; as can be seen, grades are highest in the western portion of Laguna Verde, whereas the eastern portion represents a zone of heightened recharge with diluted grades. The bottom of the block model was limited to the deepest well (LV07), and the horizontal extent of the block model was limited to the CleanTech concessions and potential of the proposed CEOL area. Laboratory results for lithium concentrations from depth specific brine and pumping test samples collected from the wells were incorporated directly into the model. Ordinary Kriging was used for the interpolation of lithium concentrations within the block model.
Figure 10: Shallow Lithium Concentration Distribution and Proposed CEOL Outline
The resource block model was subsequently validated by visual inspection and comparison of the measured and block model concentrations. Swath plots were also utilized, which compare the average measured and interpolated values along distinct profiles of the block model.
Competent Persons Statement
The following professionals act as competent persons, as defined in the AIM Note for Mining, Oil and Gas Companies (June 2009) and JORC Code (2012):
Mr. Michael Rosko is a Registered Member of the Society for Mining, Metallurgy and Exploration, member #4064687. He graduated from the University of Illinois with a bachelor's degree in geosciences in 1983, and from the University of Arizona with a master's degree in geosciences in 1986. Mr. Rosko is a registered professional geologist in the states of Arizona (#25065), California (#5236), and Texas (#6359). Mr. Rosko has practiced his profession for 38 years and has been directly involved in design of numerous exploration and production well programs in salar basins in support of lithium exploration, and estimation of the lithium resources and reserves for many other lithium projects in Argentina and Chile.
Mr. Brandon Schneider is employed as a Senior Hydrogeologist at M&A. He graduated from California Lutheran University in 2011 with a Bachelor of Science degree in Geology (with Honors) and obtained a Master of Science in Geological Sciences (Hydrogeology focus) from the University of Notre Dame in 2013. He is a professional in the discipline of Hydrogeology and a Registered Professional Geologist in Arizona (#61267) and SME Registered Member (#4306449). He has practiced his profession continuously since 2013. His relevant experience includes: (i) from 2013 to 2016, consulting hydrogeologist specializing in hydrogeological characterizations, aquifer test analyses, groundwater modeling, and pumping well optimization for mining projects and sedimentary basins in Arizona, United States; (ii) since 2017, consulting hydrogeologist in Chile specializing in lithium brine projects in Argentina and Chile with experience in brine exploration, lithium brine resource and reserve estimates, resource and reserve reporting, variable density flow and transport modeling, and optimization of pumping.
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +56 9 312 00081 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
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
Click here for the full release
This article includes content from Cleantech Lithium PLC, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Chariot Corporation Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects