Galaxy Boosts Mount Cattlin Lithium Resource by 42 Percent

Galaxy Resources (ASX:GXY) has increased the resource at its Mount Cattlin lithium project in Western Australia by 42 percent to 16.7 million tonnes (Mt).

The update comes after drilling activities that took place during the second half of 2018.

The project’s total measured and indicated resource grew 16 percent to 12.1 Mt at a grade of 1.27 Li2O (lithia), while proven and probable reserve tonnes expanded 40 percent to 10.7 Mt grading 1.15 percent Li2O and 137 parts per million Ta2O5 (tantalum oxide).

The company produced 33,780 dry metric tonnes (dmt) of spodumene concentrate from Mount Cattlin in Q4 2018, and was able to begin mining activities east of the asset’s Floater Road.

Galaxy received the necessary mining approvals from the West Australian Department of Mines, Industry Regulation and Safety during 2018’s second half.

Going forward, the company is targeting a spodumene production volume range of 40,000 to 45,000 dmt in Q1 2019, and 180,000 to 210,000 dmt for the full year.

Galaxy also made progress on its James Bay and Sal de Vida projects in Q4 2018, with James Bay having its mining tenements renewed and its environmental and social impact assessment submitted to Canadian authorities.

Sal de Vida reaped major benefits last quarter when Galaxy sold a northern tenement package at its Salar del Hombre Muerto asset to POSCO (NYSE:PKX) for US$280 million.

The proceeds from the deal are going towards accelerating development at Sal de Vida; Galaxy has said February 2019 is the target date for final registration of the tenement transfers, which will see the release of the funds.

The company also drilled two new exploration wells on Sal de Vida tenements in the last quarter, and began construction work on a 15-hectare pilot evaporation pond. The pond’s earthworks were 50 percent complete by the end of Q4 2018.

Galaxy’s share price was down 6.25 percent at the end of trading on the ASX on Thursday (January 24), closing the day at AU$2.10.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.