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The Board of Galan Lithium Limited (Galan or the Company) is pleased to announce that it has moved to 100% full ownership of the Candelas Project in the Catamarca Province, Argentina. The Candelas Project is supported by a full Preliminary Economic Assessment (PEA) and a JORC 2012 Resource and lies approximately 40 km ESE of the HMW Project. It is hosted within a ~15 km by 3–4 km wide structurally controlled basin infilled with sediments that host the Li-bearing brines (Figure 1).
HIGHLIGHTS
- 100% title to Candelas Project completed
- No 3rd party royalties
- Readily accessible reverse osmosis water source, no river water required
- PEA completed in November 2021 - robust economic results, unleveraged Pre- tax NPV of US$1,225m (8% discount rate) and IRR of 27.9% with a four (4) year payback period
- Long life project 25 years of 14ktpa of battery grade lithium carbonate (LCE)
- Indicated mineral resource of 685kt LCE @ 672mg/l Li, low impurities
- Candelas Project studies to be re-visited after completion of Hombre Muerto West DFS
Galan’s Managing Director, JP Vargas de la Vega, said: “The Candelas Project was our first project foray into Argentina and we now have final full ownership of the project. Over the journey, our focus has understandably been on Hombre Muerto West but once we complete the DFS and associated works and infrastructure projects we will move forward on Candelas. With our five years of lithium knowledge in the region, we will initially re-visit all our geological data and analysis. Don’t forget, Candelas is a stand-alone, lithium brine project in the Catamarca province, with no water access concerns, that shows robust economic returns.”
Mineral Resources
Please also refer to the JORC Code Tables, 2012 Edition, as detailed in the Galan ASX announcement dated 1 October 2019 entitled “High-Grade Maiden Lithium Resources Exceeds Expectations”.
The mineral resource estimation was undertaken by SRK Consulting (Australasia) (SRK) and was based upon results from a total of eight (8) holes drilled in the North and Central Zones at Candelas for a total of 3,537 metres.
Table 1: Mineral Resource Statement for Candelas (October 2019)
(*) The Candelas North Mineral Resource Statement was originally announced on 1 October 2019. There may be minor discrepancies in the above table due to rounding.
Preliminary Economic Assessment (PEA)
On 30 November 2021, the Company announced the results of a PEA study for its 100% owned Candelas Project in Catamarca Province, Argentina. The study, at a minimum, complies with the Canadian NI 43- 101 regulation known as a PEA and is equivalent to a JORC Scoping Study. For further PEA information, including Cautionary Statement, refer to the Galan ASX Announcement dated 30 November 2021 entitled “Excellent Preliminary Economic Assessment Results for Candelas Project in Catamarca, Argentina”.
The Study estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate product including some technical grade product for the first three (3) years.
The preparation of the Project’s PEA was managed by Ad Infinitum and Galan’s Project Manager for the engineering inputs including the recovery method, project layout and infrastructure, capital cost and operating cost estimates and overall economic evaluation. The other sections of the study were managed by consultants and employees of Galan Lithium Limited.
Click here for the full ASX Release
This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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