Galan Lithium Limited (ASX: GLN) (Galan or the Company) wishes to provide an update on the DFS and the initial approach to low-cost development to lithium concentrate.
All components of the initial DFS have now been delivered and the project team is finalising opex and capex costings and documentation, with an ASX review imminent.
As previously announced in the March 2023 Quarterly Activities Report, the DFS was separated into two phases. The initial DFS focuses on the first production phase only, being 4 ktpa LCE equivalent (Lithium Chloride Concentrate production), as per production permits which are due for approval later this month. The DFS optimisation work being conducted by the team continues and will culminate in the release of a phase 2 DFS in August 2023, addressing full 20ktpa LCE production rates.
Phase 1 will provide:
- A premium product: Li chloride concentrate is a high-grade, low impurity 6% Li (13% Li2O or 32% LCE)
- Strong ESG credentials: Power and water consumption 50% lower than lithium carbonate including a solar power plant
- Significant Economics:Capex ~40% less than lithium carbonate
- Up to 2 years earlier cash flow than lithium carbonate production saving sustaining capex
- Flexible commercial outcomes :Opens up early offtake opportunities and pre-payments
The DFS and further optimisation work has driven the revised production development plan for both the HMW and Candelas Projects. Broader, more expansive studies have commenced which envisage phase 3 production from HMW in 2028 (40ktpa LCE) followed by phase 4 production in 2030 (60ktpa LCE) from both the HMW and Candelas projects.
Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan’s flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto salar in Argentina, within South America’s ‘lithium triangle’. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation (Livent Corporation) and the Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects. Galan is also exploring at Greenbushes South in Western Australia, approximately 3km south of the Tier 1 Greenbushes Lithium Mine.