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Lithium exploration and project development company Critical Resources Limited ASX:CRR (“Critical Resources” or “the Company”) is pleased to advise that it has received further strong assay results from ongoing drilling at the Mavis Lake Lithium Project in Ontario, Canada.
Highlights
- Further outstanding assays extend the Swell Zone at Mavis Lake.
- Drilling intersects consistent thick, high-grade mineralisation, with highlights including:
- Drill-hole MF23-225 with 36.75m @ 1.12% Li2O from 208m down-hole;
- Drill-hole MF23-222 with 17.9m @ 1.09% Li2O from 247.5m down hole; and
- Drill-hole MF23-217 with 36.65m @ 0.92% Li2O from 215m down-hole, including 28m @ 1.01% Li2O from 223m down-hole.
- Swell Zone extended up-dip to the east, close to surface, and down-dip to the west.
- Drilling continues, aimed at further extending the Swell Zone and adding tonnage to the next planned Resource upgrade.
- Assay results pending from 15 drill holes.
Drilling Continues to Target the Swell Zone
Recently received assay results have continued to validate the Swell Zone theory at Mavis Lake, with drilling continuing to build on the discovery intercept of 74.4m @ 1.18% Li2O and intersect thick and consistent zones of strongly mineralised pegmatite.
The latest batch of assays, which includes intercepts of up to 36.75m at 1.12% Li2O, has extended the Swell Zone up-dip to the east, confirming that it trends towards surface.
Meanwhile, drill-holes MF23-217 and MF23-222 have both extended the mineralisation towards the west, increasing confidence that the Swell Zone trend remains open.
While the Company awaits pending permits to further test the western extent of the Swell Zone, in- fill drilling to test the Swell Zone up-dip has delivered further success with drill hole MF23-225.
Tight in-fill drilling also provides confidence for an increase in Resource category as part of a future Mineral Resource Estimate upgrade at Mavis Lake, scheduled for the first half of 2024.
Significant assay results are shown in Table 1, full exploration results can be seen in Appendix 1.
Swell Zone Definition
Drill-hole MF23-207 intersected 74.4m at 1.18% Li2O and first identified the significant Swell Zone within the Mavis Lake Main Zone deposit.
The discovery of the Swell Zone has delivered a substantial increase in mineralised width, over the initial projected MRE ore shapes, highlighting the potential for recent drilling to substantially increase the maiden MRE of 8.0Mt at 1.07% Li2O1.
Drilling to date has confirmed consistent, thick high-grade lithium mineralisation within the Swell Zone over a strike length of approximately 300m, sitting obliquely to and striking across the current MRE.
The geometry and orientation of the Swell Zone mineralisation as defined by recent intercepts is shown in Long Section and the Cross-Sections in Figures 2-6.
Importantly, the Swell Zone remains open laterally to the west, with step-out drilling and testing of the western extents of the Swell Zone the focus of current drilling.
Figure 1: Plan Map of the Mavis Lake Main Zone and Cross Section references
Figure 2: Long Section illustrating the current projection of known (assayed) ~300m strike of the Swell Zone (purple) relative to the MRE resource shape (red).
Table 1 – Significant Assay Results Drill-holes MF23-216 to MF23-225
Continuity of the Swell Zone
Prior to the intersection in the Swell Zone discovery hole MF23-207, the wider intercepts within the Mavis Lake Main Zone were thought to be isolated localized swells.
Drilling that followed up the MF23-207 intercept has shown that these previous wider zones are in fact part of a continuous, thicker zone of mineralisation that runs through the Main Zone deposit.
The continuity of the Swell Zone can be seen in Figures 3 to 6, showing a shallow plunge trend from near surface on the east, to the deeper intercepts located towards the west.
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CRR:AU
PFS Plant Location Study Results in Decision to Locate Carbonation Plant in Mining Centre of Copiapó
Highlights:
- A plant location study was completed by Worley, which evaluated the optimal plant location configuration for the Laguna Verde project, based on a capacity of 20,000 tonnes per annum of battery grade lithium carbonate equivalent (LCE)
- This provided a trade-off analysis between locating the entire plant at Laguna Verde versus splitting plant facilities between Laguna Verde and the nearby mining centre of Copiapó
- The option of locating the DLE plant and eluate concentration stages at the Laguna Verde site, and the carbonation plant at Copiapó is highly favourable, resulting in the decision to proceed with this option
- A concentrated eluate with 6% lithium, the maximum concentration before lithium salts begin to precipitate, will be transported to Copiapó for impurity removal and carbonation stages
- This configuration results in a minor increase in volumes transported while taking advantage of Copiapó's well-developed infrastructure and better access to a skilled workforce
- According to the Lanshen plant design, approximately 70% of the operational workforce will be employed at the carbonation plant, locating it in Copiapó provides major advantages in hiring a local work force including diversity outcomes such as greater female participation, while contributing to the local economy
- The footprint at the project site, which is at 4300m above sea level, will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts
- The carbonation plant in Copiapó would eventually be expanded to also treat concentrated eluate from the Viento Andino project
- The PFS, now due for completion before the end of Q4 this year, will include updated capex and opex estimates and will further determine the optimal production development strategy
Steve Kesler, Executive Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"We undertook a plant location study as part of our ongoing PFS for the Laguna Verde project resulting in the decision to locate the DLE and eluate concentration stages at the project site, and the carbonation plant in Copiapó. This will have various benefits such as reducing the footprint and impacts at Laguna Verde, and taking advantage of existing infrastructure, power supply and skilled workforce in Copiapó. The plant at Copiapó can then be expanded to treat material from our Viento Andino project and potentially others. The decision on plant configuration will feed directly into the wider PFS which is due to be completed later this year."
Further Information
The Company engaged Worley, utilising its local Santiago based office, to undertake the PFS for the Laguna Verde project, and selected Lanshen as designer and supplier of the entire DLE processing plant. Worley recently performed various trade-off or options studies to consider the most favourable configuration of the project and a plant location option study which assessed three scenarios for location of the plant, of which two of the scenarios, labelled Scenario 1 and Scenario 3 in the report, provided the relevant trade-off comparison:
- Scenario 1: Locating the entire plant based at the Laguna Verde project site
- Scenario 3: Locating DLE and eluate concentration stages at the project site, and the impurity removal and carbonation (downstream plant) at Copiapó
Laguna Verde is connected to Copiapó via a 270km paved international highway, as shown in Figure 1. Copiapó is a major regional mining centre in Chile with a population of 175,000, having well established infrastructure, a skilled workforce, and existing supply hubs for reagents and other materials. While basing the entire plant at the project site is feasible and most lithium projects in the lithium triangle are proceeding on such a basis, the good transport link and relative proximity to Copiapó made a trade-off study valuable.
Figure 1: Regional Map
An analysis of the difference in transport volumes was undertaken showing a minimal overall difference between the two scenarios. For Scenario 3 where impurity removal and carbonation stages are in Copiapó, there will be no transport of reagents or bulk chemicals to Laguna Verde which has a positive environmental and community impact.
A qualitative assessment was then undertaken by the Company across the range of metrics as shown in Figure 2. There are only two metrics in which Scenario 1 where the entire plant is located at site has a significantly positive comparison. The first one is storage during the construction phase, in that it will require a single storage facility rather than storage at both locations for tools, materials and spare parts. The second is disposal of solids, which is largely Sodium Chloride (NaCl or table salt) that is dissolved in the eluate and removed in the impurity removal stage before carbonation. In Scenario 1, these would be re-dissolved in the spent brine and re-injected. In Scenario 3, the report assumed NaCl would need to be disposed in Copiapó at a cost. However there should be a ready market for NaCl and further evaluation of this is required.
Figure 2: Qualitative Comparison- All on site (1) and split plants (3)
Across a range of other metrics the Scenario 3 of locating the downstream plant at Copiapó has major advantages. According to Lanshen, approximately 70% of the operational labour force will work at the downstream plant, which provides a far superior option for skilled workforce based in Copiapó. The footprint at the project site will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts. The Board has accepted the study and the decision to split the plant facilities between the project site and Copiapó will be the basis for the PFS.
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
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 sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major 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 direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com
Galan Lithium
Overview
Argentina is no stranger to lithium mining. The South American nation is one of three encompassed in the prolific Lithium Triangle, a region that holds more than half of the world’s lithium deposits. Argentina ranks third in the world in terms of lithium reserves at 2.7 million metric tons (MT), concentrating lithium operations in the provinces of Jujuy, Salta and Catamarca.
Amidst electrification and decarbonization, analysts have forecasted a global supply deficit of 89,000 tons of lithium carbonate equivalent (LCE) in 2023 and the Argentinian government aims to double down on lithium to meet the increasing demand. Argentina has committed to $7 billion worth of investment for lithium production with strong growth projected for exports at $1.1 billion in 2023.
Galan Lithium (ASX:GLN,FSX:9CH) is an Australia-based international mining development company focused on its high-quality lithium brine projects in Argentina – Hombre Muerto West and Candelas. The company also holds a highly prospective lithium project in Australia – Greenbushes South.
The company’s flagship Hombre Muerto West (HMW) project hosts some of Argentina’s highest grade and lowest impurity levels with an inventory of 8.6 million tons (Mt) contained LCE @ 859 mg/L lithium, with 4.7 Mt contained LCE @ 866 mg/L Li in the measured category. The 100-percent-owned property also leverages close proximity to Livent Corporation’s El Fenix operation and Allkem’s Sal de Vida projects.
Galan has signed a commercial agreement with the Catamarca Government supporting the grant of permits to enable the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.
Catamarca Governor Raúl Jalil and Galan Lithium Managing Director Juan Pablo Vargas de la Vega in Catamarca.
Galan’s secondary Candelas project comprises a sizable valley-filled channel with a potential indicated presence of substantially high-volume brine characteristics. The project’s maiden resource estimates stand upwards of 685 kilotons (kt) LCE, based on surveying from October 2019, and demonstrate exceptional discovery opportunities across this underexplored asset. Candelas has been rolled into Phase 4 of Galan’s targeted expansion plans, towards 60 ktpa LCE production by 2030.
Galan’s 100-percent-owned Greenbushes South Project is located in Western Australia and boasts advantageous positioning 3 kilometers south of the prolific Greenbushes lithium mine owned by Talison, Tianqi, IGO and Albermarle. Drilling of the first target was completed in July 2023. Galan is currently developing land access agreements for future drilling campaigns at Greenbushes South. An exploration license has been granted to the company for an additional key tenement, E70/4629 targeting lithium-bearing pegmatites for five years to February 2029. The tenement is approximately 260 kilometres south of Perth, the capital of Western Australia, and less than 30 kilometres south of the Greenbushes pegmatite at the Greenbushes Mine.
In 2023, Galan entered into an exclusive binding agreement with Redstone Resources to acquire 100 percent of the Camaro-Taiga-Hellcat property blocks from Infinity Stone Ventures (CSE:GEMS,GEMSF,FSE:B2I). The assets are located in the world-class James Bay Lithium Province in Quebec, collectively covering 5,187 hectares. The joint venture also includes an option to acquire 100 percent of the PAK East and PAK Southeast Lithium Project, spanning 1,415 hectares in Ontario’s Electric Avenue near Frontier Lithium’s PAK Lithium Project.
Galan has a highly experienced management team with over a century of professional expertise in the resource, finance and energy sectors. This results-oriented board and their vested interest in the company's success prime Galan for exceptional discovery potential and advanced development of its high-quality projects.
Company Highlights
- Galan Lithium is an ASX-listed company developing lithium brine projects within South America’s lithium triangle on the Hombre Muerto salar in Argentina.
- The company has two high-quality projects in the works: its flagship Hombre Muerto West (HMW) and the Candelas lithium project, both in Argentina. The two projects combined bring the company’s current total mineral resource estimate to 8.6 million tons lithium carbonate equivalent @ 859 mg/L lithium.
- HMW leverages advantageous positioning near notable mining operations, including Livent Corporation’s El Felix project and hosts exceptional high-grade lithium and low impurity resources.
- The HMW Phase 1 (5.4 ktpa LCE) execution plan is progressing well with the delivery of the first evaporation-ready pond expected in 2024, and production in H1 2025.
- The HMW Phase 2 definitive feasibility study (DFS) delivers compelling economics with 21 kilo-tons per annum (ktpa) lithium carbonate equivalent (LCE) operation at HMW, targeting a high-quality, 6 percent concentrated lithium chloride product (equivalent to 12.9 percent lithium oxide or 31.9 percent LCE) in 2026.
- Galan has signed a commercial agreement with the Catamarca Government enabling the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.
- Galan is transitioning into a major lithium project developer and remains committed to conducting fast-tracked lithium development in its prolific projects with a target production of 60 ktpa LCE from HMW and Candelas by 2030.
Key Projects
Hombre Muerto West Project
The 100-percent-owned Hombre Muerto West project is a large land property that sits on the west coast of the Hombre Muerto salar in Argentina, the second-best salar in the world for the production of lithium from brines. The property also leverages strategic positioning adjacent to notable competitors like Livent to the east.
Galan has increased HMW’s mineral resource to 8.6 Mt contained LCE @ 859 mg/L lithium (previously 7.3 Mt LCE @852 mg/L lithium), one of the highest grade resource estimates declared in Argentina. HMW’s measured resource is now at 4.7 Mt contained LCE @ 866mg/L lithium. Inclusion of the Catalina tenure adds ~1.3 Mt LCE to the HMW resource.
The pilot plant at HMW has validated the production of lithium chlorine concentrate, adding reagents to eliminate impurities, and generating a concentrate at 6 percent lithium. The plant comprises pre-concentration ponds, a lime plant, a filter press and concentration ponds.
Pilot Plant at HMW
Construction for Phase I has already commenced for 5.4 ktpa LCE production at HMW, and aims to deliver lithium chloride production in H1 2025. The fourth long-term pumping test (PBRS-03-23) results at HMW record an outstanding lithium mean grade of 981 mg/L - the highest reported grade from a production well in the Hombre Muerto Salar.
In April 2024, Galan announced 33 percent project completion with pond construction at 45 percent and project execution is advancing as planned.
A definitive feasibility study (DFS) for phase 2 shows a 20.85 ktpa LCE operation at HMW, targeting high-quality, 6 percent concentrated lithium chloride product (equivalent to 12.9 percent lithium oxide or 31.9 percent LCE) in 2026. The DFS also indicated phase 2 will deliver a post-tax NPV (8 percent) of US$2 billion, IRR of 43 percent and free cash flow of US$236 million per year. Phase 2 provides an exceptional foundation for significant economic upside in phases 3 and 4, targeting 60 ktpa LCE production by 2030.
The company has signed a binding term sheet with a wholly owned subsidiary of Glencore for offtake of up to 100 percent of its premium lithium chloride concentrate from HMW, and the offer to provide or facilitate a secured financing prepayment facility for US$70 to US$100 million, subject to conditions precedent being met.
Galan is targeting first-phase HMW lithium concentrate production in H1 2025
Galan now has 100 percent full ownership of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina. The newly secured Catalina tenure has a strong potential to significantly add to the existing HMW resource. The tenure also covers the Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar, Deseo I and Deceo II tenements.
Greenbushes South Lithium Project
The 100-percent-owned Greenbushes South lithium project is located near Perth, Western Australia, and is three kilometers south of the world-class Greenbushes lithium mine, managed by Talison Lithium. The Greenbushes South tenements can be found along the Donnybrook-Bridgetown Shear Zone geologic structure, which hosts the lithium-bearing pegmatites at the Greenbushes Lithium Mine.
Greenbushes South covers nearly 315 square kilometers, and hosts elevated pathfinder elements with well-defined anomalies adjacent to the property.
Management Team
Richard Homsany - Non-executive Chairman
Richard Homsany is an experienced corporate lawyer and has extensive board and operational experience in the resources and energy sectors. He is the executive chairman of ASX-listed uranium exploration and development company Toro Energy Limited, executive vice-president of Australia of TSX-listed uranium exploration company Mega Uranium and the principal of Cardinals Lawyers and Consultants, a boutique corporate and energy & resources law firm. He is also the chairman of the Health Insurance Fund of Australia (HIF) and listed Redstone Resources and Central Iron Ore and is a non-executive director of Brookside Energy Homsany’s past career includes time working at the Minera Alumbrera Copper and Gold mine located in the Catamarca Province, northwest Argentina.
Juan Pablo (‘JP’) Vargas de la Vega - Founder and Managing Director
Juan Pablo Vargas de la Vega is a Chilean/Australian mineral industry professional with 20 years of broad experience in ASX mining companies, stockbroking and private equity firms. JP founded Galan in late 2017. He has been a specialist lithium analyst in Australia, has also operated a private copper business in Chile and worked for BHP, Rio Tinto and Codelco.
Daniel Jimenez - Non-executive Director
Daniel Jimenez is a civil and industrial engineer and has worked for a world leader in the lithium industry, Sociedad Química y Minera de Chile, for over 28 years. He was the vice-president of sales of lithium, iodine and industrial chemicals where he formulated the commercial strategy and marketing of SQM’s industrial products and was responsible for over US$900 million worth of estimated sales in 2018.
Terry Gardiner - Non-executive Director
Terry Gardiner has 25 years’ experience in capital markets, stockbroking and derivatives trading. Prior to that, he had many years of trading in equities and derivatives for his family accounts. He is currently a director of boutique stockbroking firm Barclay Wells, a non-executive director of Cazaly Resources, and non-executive chairman of Charger Metals NL. He also holds non-executive positions with other ASX-listed entities.
María Claudia Pohl Ibáñez - Non-executive Director
María Claudia Pohl Ibáñez is an industrial civil industrial engineer with extensive experience in the lithium production industry. Until recently, she worked for world leader in the lithium industry Sociedad Química y Minera de Chile (NYSE:SQM, Santiago Stock Exchange:SQM-A, SQM-B) for 23 years, based in Santiago, Chile. During her time at SQM, she held numerous senior leadership roles including overseeing lithium planning and studies. Ibáñez brings significant lithium project evaluation and operational experience whilst joining the board at a critical juncture in Galan’s journey to becoming a significant South American lithium producer. Since leaving SQM in late 2021, Ibáñez has been managing partner and general manager of Chile-based Ad-Infinitum, a process engineering consultancy, with a specific focus on lithium brine projects under study and development, and the associated project evaluations.
Ross Dinsdale - Chief Financial Officer
Ross Dinsdale has 18 years of extensive experience across capital markets, equity research, investment banking and executive roles in the natural resources sector. He has held positions with Goldman Sachs, Azure Capital and more recently he acted as CFO for Mallee Resources. He is a CFA charter holder, has a Bachelor of Commerce and holds a Graduate Diploma in Applied Finance.
