CleanTech Lithium PLC (AIM: CTL) has announced results of a recently completed scoping study for its Francisco Basin project in Chile, which confirmed the projects’ potential. The project is slated to produce 20Kt of battery-grade lithium carbonate annually for 12 years, using direct lithium extraction (DLE) technology.
The next step will be a resource drill programme starting in Q4 of this year, with the intention of upgrading the resource estimate which could extend the project’s lifespan.
“The company plans to proceed to a pre-feasibility study (PFS) for the project on completion of the planned resource drill programme, which is expected…in 2H 2024,” commented CleanTech chief executive Aldo Boitano.
“Francisco Basin is our second project which is being developed on a schedule one year behind our more advanced Laguna Verde project. Combining the two scoping studies means…an internal rate of return of more than 43% for each project.”
Net cashflow after tax and royalties is estimated at US$2.5B over the full production period, with operating costs of US$3,641/t of lithium carbonate and capital expenditure of US$450M. The scoping study supports the potential for Francisco Basin to become a major supplier of battery grade lithium to the European and U.S. markets.
Laguna Verde and Francisco Basin are CleanTech Lithium’s flagship projects. In addition, the company owns the Llamara greenfield project, located about 600km to the north of the two. This asset is in the Pampa del Tamarugal basin, which is one of the largest basins in the lithium triangle.
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