CleanTech Lithium PLC (AIM:CTL, OTCQB:CTLHF) shares advanced in Monday morning's deals after it announced an upgrade to the Laguna Verde project’s JORC resources estimate, with the project now comprising over 1.8 million tonnes of lithium resources.
It brings the project a step closer to reaching pre-feasibility – with the milestone report now underway.
"We are very encouraged by this upgrade in the Laguna Verde resource estimate … providing more confidence in the resource potential and further de-risking of the project after an extensive work programme this year,” CleanTecdh Lithium chief executive Aldo Boitano said in a statement.
“The resource estimate provides the basis for the Pre-Feasibility Study currently underway with a base case production rate of 20,000 tonnes of lithium carbonate per annum.
“We expect the study will reaffirm the economic potential for this project as we advance the use of Direct Lithium Extraction to supply green lithium to the EV industry," he added.
The new JORC resource estimate, the lithium carbonate equivalent (LCE) stands at an impressive 1.8 million tonnes, with grades estimated at 200mg/L of lithium.
It represents a 39% increase in measured and indicated resources, up to 1.1 million tonnes of LCE, with the measured category rising by 174%. Some 652,000 tonnes of resource was retained in the inferred category.
The company believes it now has the resource to support production of 20,000 tonnes per annum of battery-grade lithium carbonate for over 30 years.
The upcoming pre-feasibility study will seek to outline production potential, explore some of the commercial factors and gauge potential capital needs.
In London, Cleantech Lithium shares were trading up 2.74p or 7.2% changing hands at 40.74p each valuing the company at just over £43 million.