Confidentail – FOR Discusison Pursposes Only
CONFIDENTAIL – FOR DISCUSISON PURSPOSES ONLY
DRAFT: SEPTEMBER 24, 2023
ACLARA PROVIDES UPDATE ON PERMITTING AND DEVELOPMENT STRATEGY
FOR THE PENCO MODULE PROJECT IN CHILE
TORONTO, ON, September 25, 2023 – Aclara Resources Inc. (“ Aclara” or the “ Company”) (TSX: ARA)
provides an update on its Chilean Penco Module (the “ Project”) permitting and development strategy
following the previously announced receipt of notice from the Environmental Service Assessment (“ SEA”)
of its decision to terminate the review of the Company´s application for an environmenta l impact
assessment (“EIA”) of the Project based on the identification of six previously undisclosed “naranjillo” trees,
considered “vulnerable species”, within the Project area. Five of these naranjillo trees were found near an
existing access road that would require modification and one naranjillo tree was found in a local “native
forest” within the deposition zone known as Jupiter.
EIA Application
Aclara has revised its permitting strategy with the primary aim of addressing concerns associated with
native forests whilst expecting to minimize any substantial impact on the Project's development timeline.
The revised strategy will also afford the Company with the opportunity to integrate technical enhancements
into the Project. To effectively implement the revised strategy, the Company is proposing to undertake the
preparation and submission of two EIAs, which will collectively cover the full life of mine of the Project.
Chilean regulations allow for the submission of a project t o SEA in two or more stages provided that they
are at the same regulatory review level, as would be the case in respect of the two EIAs.
The Company is currently preparing an initial EIA (“EIA 1”), which will cover approximately the first five years
of life of mine of the Project and will encompass three extraction zones (Victoria Norte, Luna and Maite) ,
one deposition zone (Neptuno) and the production facilities of the Project . The production of these three
zones will be operationally balanced with the deposition zone and EIA 1 is expected to cover the payback
period of the initial capex of the Project. EIA 1 aims to largely reduce the Project´s exposure to native forests
as well as address the observations received from the evaluation services. The Company expects to file EIA
1 during Q1 2024.
The second EIA (“EIA 2”) will be prepared when the Company is ready to expand its production at the Project
to zones not covered by EIA 1 (namely, Victoria Sur, Alexandra Oriente, and Alexandra Poniente) based on
the availability of new deposition zones. The Company will present a permit application to reactivate the
Jupiter deposition zone as well as evaluate new deposition zones. Furthermore, EIA 2 will consider an
increase to the production plant's throughput capacity. Such an increase will be studied at a conceptual level
during 2024.
Technical Development
In light of the revised permitting strategy, the Company has decided to delay the completion of its Feasibility
Study and use the additional time to further refine the engineering aspects of the Project by incorporating
enhancements that are expected to result in reduced capital and operating costs and improved operational
efficiency. These enhancements are the direct result of insights gained from recent piloting work and
ongoing research and development initiatives.
Aclara’s CEO, Ramon Barua, commented: "Our revised strategy for the Project reflects our commitment to
address the concerns raised by the Chilean environmental evaluation services, even if it would result in a
staged approach to the development of the Project. Given the limitations imposed by the naranjillo tree found
CONFIDENTAIL – FOR DISCUSISON PURSPOSES ONLY
DRAFT: SEPTEMBER 24, 2023
in the Jupiter deposition zone, the Company will explore alternatives in order to find the best solution for
deposition zones. We are optimistic about the potential of achieving success in terms of one or more of such
alternatives in order to minimize the environmental impact while maximizing the value of the Project.”
Updated Project Schedule
As a result of its updated permitting and development strategy, the Company has also updated the proposed
milestones and/or targets relating to the Project, which are as presented below:
▪ EIA 1 Filing: Q1 2024
▪ Anticipated EIA 1 Approval: Q4 2025
▪ Feasibility Study Filing: Q3 2025
▪ Construction: Q1 2026
▪ Production: Q2 2027
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral
resources. Its primary project is located in the Bio bio Region of southern Chile. The company is dedicated to
developing its mineral resources t hrough a project known as the Penco Module. This module encompasses
an area of approximately 600 hectares and contains ionic clays that are rich in heavy rare earth elements.
Currently, Aclara Resources is primarily focused on the development, construction, and future operation of
the Penco Module. The goal is to establish a processing plant that will produce a heavy rare earth concentrate.
This concentrate will be generated by processing clays obtained from nearby deposits.
Aclara's extraction process offers several environmentally attractive features. It does not involve blasting,
crushing, or milling. Additionally, it does not generate tailings, elimina ting the need for a tailings storage
facility. The company utilizes 100% recycled water and minimizes water consumption through high levels of
water recirculation. The ionic clay feedstock is amenable to leaching with a fertilizer, and harmful
radionuclides are not produced.
Simultaneously, alongside the development of the Penco Module, the company intends to identify further
opportunities for increasing rare earth element production. This will involve intensive greenfield exploration
programs and the development of additional project "modules" within the company's concessions.
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities legislation,
which reflects the Company’s current expectations regarding future events, including statements with regard to the
permitting process, the revised EIA application, including the timing and preparation of EIA1 and EIA2, on-going and
future discussions and consultations with relevant authorities and advisors, the completion of, and impact of the delay
of, a Feasibility Study on the Penco Module, plans and strategies, and key milestones and targets relating to the
development and construction of, or production at, the Penco Module. Forward-looking information is based on a
number of assumption s and is subject to a number of risks and uncertainties, many of which are bey ond the
Company’s control. Such risks and uncertainties include, but are not limited to risks related to operating in a
foreign jurisdiction, including political and economic problems in Chile; risks related to changes to mining laws
and regulations and th e termination or non -renewal of mining rights by governmental authorities; risks related
to failure to comply with the law or obtain necessary permits and licences or renew them; compliance with
environmental regulations can be costly; actual production, c apital and operating costs may be different than
those anticipated; the Company may be not able to successfully complete the development, construction and
start-up of mines and new development projects; risks related to mining operations; and dependence on the
Penco Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of
the foregoing facto rs, among others, please refer to the risk factors discussed under “Risk Factors” in the
Company’s annual information form dated as of March 28, 2023 filed on the Company’s SEDAR profile. Actual
CONFIDENTAIL – FOR DISCUSISON PURSPOSES ONLY
DRAFT: SEPTEMBER 24, 2023
results and timing could differ materially from those projected herein. Unless otherwise noted or the context
otherwise indicates, the forward-looking information contained in this news release is provided as of the date of
this news release and the Company does not undertake any obligation to update such forward -looking
information, whether as a result of new information, future events or otherwise, except as expressly required under
applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer