Galan Lithium Limited (ASX:GLN) ("Galan" or the "Company") is excited to announce significant progress in the construction and development of its flagship Hombre Muerto West (HMW) lithium brine project. With the completion of critical early-stage infrastructure and the advancement of construction activities, Galan is on track to commence lithium chloride production in the first half of 2025.
Key Highlights of the HMW Project Progress:
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Completion of Pond 1 Earthworks and Liner Installation: Spanning 2.4 kilometers in length, the earthworks and liner installation for Pond 1 have been successfully completed. The filling of the remainder of Pond 1 is currently underway, marking the commencement of the evaporation process, a crucial step in Galan's long-term production schedule.
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Pond 2 Construction on Schedule: The construction of Pond 2's earthworks is progressing well, with 65% completion. Liner installation is set to begin next week, ensuring the project remains on schedule for its phased production plan.
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Operational Flexibility with 9 Production Wells: The construction of 9 production wells provides Galan with operational flexibility. Although Phase 1 production requires only 6 wells, the additional wells position the Company for scalable production increases.
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Tier One Project with Premium High-Grade Lithium: The HMW Project is poised to produce a premium high-grade lithium chloride concentrate of 6% Li, equivalent to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE), starting in H1 2025.
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Low All-In Sustaining Costs: Positioned in the 1st quartile of the lithium industry’s cost curve, the HMW project boasts an initial reserve estimate of 40 years with low all-in sustaining costs. The operating cost of $US3,510/t LCE translates to a competitive Li2O equivalent operating cost of $US310-$US350/t, ensuring robust production margins at current spot prices.
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Glencore Due Diligence Continues: As part of its strategic development, Galan continues to engage with Glencore, with due diligence processes ongoing.
Galan Lithium Limited's HMW project, separated into four production phases, aims to establish a significant presence in the lithium market. With the Phase 1 Definitive Feasibility Study (DFS) targeting the production of 5.4ktpa LCE of lithium chloride concentrate by H1 2025, and subsequent phases set to increase production capacity significantly, Galan is well-positioned to meet the growing demand for lithium.
The Company's commitment to advancing the HMW project with low costs and high-grade lithium production underscores its potential to become a key player in the lithium industry. Galan looks forward to providing further updates as it progresses towards its production milestones and continues to explore opportunities to enhance shareholder value.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“The completion of earthworks and the installation of liners for Pond 1 represents a significant milestone for the HMW Phase 1 construction team. Evaporation has now commenced which is the first step of the Company’slong-term production schedule for itslow-cost, low-risk lithium chloride development strategy, as Galan looks to become the next lithium producer in Argentina in H1 2025.”
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 (Arcadium Lithium, formerly Livent Corporation), Sal de Vida (Arcadium Lithium, formerly 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
