Galan Lithium Limited (ASX:GLN) ("Galan" or the "Company"), an ASX-listed lithium exploration and development business, is pleased to provide an update on the significant progress of its Hombre Muerto West (HMW) Phase 1 lithium brine project. The Company is on track to commence lithium chloride production in the first half of 2025.
Key Project Highlights:
- Commencement of Pond 1 Filling: The initial filling of Pond 1 at the HMW Project marks a significant milestone in the project's development.
- Evaporation Process Initiation: The evaporation process, a critical component of lithium production, is set to begin within two weeks following the completion of quality testing.
- Rapid Progress in Construction: The liner installation in Pond 1 has achieved 40% completion, while Pond 2's earthworks construction is 20% complete.
- Premium Grade Lithium Chloride Production: The HMW Project is poised to produce a high-grade lithium chloride concentrate of 6% Li, equivalent to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE), positioning it as a tier-one project in the industry.
- Competitive Cost Structure: With an operating cost of $US3,510/t LCE, translating to a low Li2O equivalent operating cost of SC6 $US310/t-$US350/t, HMW is positioned in the 1st quartile of the lithium industry’s cost curve.
- Resource Estimate Update: An updated resource estimate for the HMW Project is scheduled for release in Q1 2024.
Phased Production Strategy:
The HMW project is structured into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) is focused on producing 5.4ktpa LCE of lithium chloride concentrate by H1 2025. Subsequent phases include:
- Phase 2: Targeting 21ktpa LCE in 2026.
- Phase 3: Aiming for 40ktpa LCE by 2028.
- Phase 4: Projected to reach 60ktpa LCE by 2030, incorporating lithium brine from both HMW and Galan’s Candelas project.
The promising results of the Phase 2 DFS, announced on 3 October 2023, underscore the project's potential and scalability.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“Our experienced project team have been implementing a quicker route to start evaporation while construction continues for HMW Phase 1. We are taking advantage of the summer season whereby a buffer wall has been installed at the one third mark of Pond 1. The commencement of the filling of Pond 1 is another significant major milestone for the HMW project and I congratulate the entire Galan team. The initial partial evaporation process will commence in approximately 14 days with the full fill of Pond 1 remaining on track for Q1 2024.”
About us:
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 3 km south of the Tier 1 Greenbushes Lithium Mine.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
