CleanTech Lithium (AIM:CTL) CEO Ignacio Mehech says the company has a “unique opportunity” to become the next lithium producer in Chile, after completing a Prefeasibility Study (PFS) for the Laguna Verde Project.
The PFS shows ‘positive’ technical foundations and ‘compelling’ economic outcomes, with a pre-tax net present value of US$1.37 billion ($2 billion) with an internal rate of return of 24.2%.
Laguna Verde is expected to produce 15,000 tonnes of battery grade lithium carbonate per year over a 25-year mine life.
The PFS also outlines a capital expenditure (CAPEX) of US$748 million, an operational expenditure (OPEX) of US$5,768 per tonne, and a payback period of four years.
Mehech notes the completion of the PFS is considered a “major” achievement and shows the project has “strong” technical merits and favourable economics.
“The estimated CAPEX intensity of approximately US$49,900 per tonne of battery grade lithium carbonate compares favourably with direct lithium extraction projects in development globally, and the estimated OPEX places the project in the lowest quartile for the industry, leveraging Chile’s advantages in infrastructure, logistics and a large highly skilled workforce,” the CEO says.
“Completion of the PFS allows us to kickstart the process of selecting a strategic partner to fund and develop the project, with our already engaged consultant Cutfield Freeman & Co.
“What lies ahead is an exciting period, as we will look to begin preparing the environmental impact assessment, seeking to dual list on the Australian Securities Exchange (ASX) and begin preparing for the Definitive Feasibility Study, all the while completing the strategic partner selection process by year end.”
The Laguna Verde Project, located in the Atacama region of Chile, has an ore reserve of 378,000 tonnes of lithium carbonate equivalent at an average grade of 186 milligrams per litre.
CleanTech Lithium is an explorer and developer focused on advancing lithium projects in Chile for the clean energy transition.
Write to Aaliyah Rogan at Mining.com.au
Images: CleanTech Lithium
