Perth, WA — April 29, 2024 — Galan Lithium Limited (ASX: GLN), ASX-listed lithium exploration and development Company, proudly announces significant progress at its Hombre Muerto West (HMW) project, achieving a substantial milestone of 1,000 tonnes of Lithium Carbonate Equivalent (LCE) in its inventory. This development underscores the project's adherence to its planned timeline, with lithium chloride production slated for the first half of 2025.
The HMW project, entirely owned by Galan, is currently 33% complete, with pond construction advancing rapidly to 45% completion. The current stage includes continuous evaporation at Ponds 1 and 2, nearing completion of earthworks and liner installation at Pond 3, and the commencement of earthworks at Pond 4. The project remains in strict alignment with its Phase 1 feasibility study metrics, including average brine flow rates, lithium grades, and evaporation rates.
Galan's rigorous project management and operational strategy have ensured that capital expenditures remain within 33% of the budgeted amount for Phase 1. The company also actively explores avenues to further reduce both capital and operational expenditures to enhance economic efficiency and project viability.
The HMW project is positioned favorably in the lithium industry’s cost curve, expected to operate in the 1st quartile of all-in sustaining costs. With a robust initial reserve estimate projected to support operations for 40 years and a comprehensive strategy to optimize production costs, Galan anticipates strong production margins relative to current market prices.
As part of its strategic development, Galan has initiated discussions for offtake and funding, progressing well with Glencore's ongoing due diligence process. These efforts are pivotal as Galan aims to elevate its production capacity in subsequent phases, targeting up to 60ktpa LCE by 2030, leveraging both the HMW and Candelas projects.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are very proud of the solid progress being made by the HMW Phase 1 construction team. With more than one third of the project completion now achieved, Galan is well on its way towards its targeted commencement of production in H1 2025. Galan would like to acknowledge and sincerely thank the Government of the Catamarca Province in Argentina for their continued support, evidenced by the recent agreement signed to commercialise lithium chloride concentrate from HMW. We are excited about the opportunities this agreement now presents to Galan’s future”
About us:
Jane Morgan
jm@janemorganmanagement.com.au
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
