CleanTech Lithium kicks off exploration at two new Chilean assets

Chile-focused CleanTech Lithium (AIM: CTL) said on Friday it had received initial results from two of its exploration projects that show a subsurface brine aquifer target in the Salar de Atacama basin and the presence of boron.

Llamara, a greenfield project in northern Chile, had two targets drill tested. The first samples were depleted in lithium, while the first batch of surface samples recorded minor lithium enrichment along with high grades of boron. A second batch of surface sample results are pending.

At the other presently unnamed project, in the Atacama Desert, a subsurface brine aquifer target was identified.

The Salar de Atacama is designated as a strategic salt flat by the Chilean government. This means that any commercial development will require a joint venture with a state entity holding a majority (51%) stake, which CleanTech views as suitable for such a strategically important basin.

The company noted that community engagement at the project, covering a total area of 377 sq. km will also be crucial, but it believes its proposed method — Direct Lithium Extraction (DLE) — will help attract support as it removes the need for water-intensive evaporation ponds.

All along the world’s EV supply chain, this new way of mining lithium is being presented as the solution for increasing lithium output while protecting the environment. Billions of dollars are pouring in to what Goldman Sachs calls “potential game-changing technology,” as its impact is expected to be much like shale’s on the oil industry.

According to the bank, if 20% to 40% of Latin America’s brine projects use DLE, it could increase the region’s lithium output by about 35% from 2028 — or an 8% boost to global supply.

CleanTech said while the two projects add potential upside, its main focus remains on the Laguna Verde and Francisco Basin projects, for which a prefeasibility study is underway and scoping study has been completed, respectively. 

Chile is the world’s top copper producer and the second-largest producer of lithium. Both metals are considered vital commodities for the global transition from fossil fuels to renewable energies.

Global demand for lithium, according to the country’s government projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes.