CleanTech Lithium PLC (AIM:CTL, OTCQB:CTLHF) (CTL) said talks are ongoing with the Chilean government following recent announcements on the country’s National Lithium Strategy.
According to Minister of Mining Marcela Hernando, in a recent interview with Mining.com, the government will only seek control of the operation in projects that are considered "strategic" and currently the only strategic lithium area is in Salar de Atacama.
CTL said its (direct lithium extraction) projects are not subject to state requirements but it has the option to invite a state company to participate.
“The group will endeavour to develop the projects to the optimal benefit of all stakeholders,” said the statement.
CTL also updated on the progress of its three projects in Chile.
At Laguna Verde, assays from re-sampling of well LV02 showed an improvement in average lithium grade to 203mg/L and a peak grade of 417mg/L lithium.
Based on the completion of the 2023 drilling and pump test programmes, a JORC resource upgrade is expected in the coming weeks, CTL added.
At Francisco Basin, all three new wells planned for the 2023 drilling campaign have been completed and two additional wells were added to the programme underway to further test the extension of the resource, which is expected early in the third quarter.
At Llamara, an exploration hole drilled to a 300-metre depth encountered porous sandstone that recorded brine and a gas sequence which, for safety reasons, necessitated hole shut-in though brine was detected at a shallower depth than expected.
Aldo Boitano, chief executive, said: "At Llamara, while unexpected to encounter gas which required the well to be remediated before reaching the intended depth, the board is encouraged by the findings, encountering brine at shallower depths than expected.
“We have already commenced drilling a well in a new location which, based on seismic data, is not expected to intersect gas.
"In the coming weeks, we will be updating the market on JORC upgrades from Laguna Verde and from Francisco Basin, with the Scoping Study for Francisco Basin following shortly afterwards.
"We continue to have very positive discussions with the government and state entities regarding the development of our projects and will provide further updates on progress in the coming weeks."