(Sharecast News) - CleanTech Lithium announced the start of an ambitious drilling programme at its Laguna Verde project on Monday, marking a significant step in its efforts to upgrade its existing JORC resources and convert resources into reserves.
The AIM-traded firm said it aimed to generate a reserve estimate of lithium carbonate equivalent (LCE), which would be pivotal in the project's pre-feasibility study and eventual production plan.
It said the project's drill rig mobilisation and establishing a drillers' camp and support services had been completed, with drilling starting on 4 January.
CleanTech said it intended to drill five wells as part of the programme, with the first well, LV07, already underway.
The company said it had enlisted the expertise of renowned hydrogeology and resource estimation consultant Montgomery & Associates to oversee the resource drill programme and the subsequent JORC reserve report.
It said the programme would also include reinjection testing - a vital aspect of refining the brine extraction and reinjection model.
"We are excited to start off the new year with another active drilling programme at our flagship project, Laguna Verde," said chief executive officer Aldo Boitano.
"The aim of this drilling programme is to upgrade the current JORC resource, converting resources into reserves.
"This provides a key input into the pre-feasibility study and will inform the environmental impact assessment, all of which will support CTL's conversations with potential strategic partners."
Boitano said CleanTech was working with a "leading" international consultant, Montgomery & Associates, to deliver the resource drill programme, including reinjection testing.
"The reinjection of spent brine is key to minimising aquifer depletion.
"Furthermore, we are expecting results from our DLE test work and first eluate production from our pilot plant in the coming weeks."
At 1607 GMT, shares in CleanTech Lithium were down 1.3% at 19p.
Reporting by Josh White for Sharecast.com.
Cleantech Lithium (CTL)