Galan Lithium

HMW Full Phase 1 Construction Commences – Lithium Production Expected By H1 2025

Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce that full Phase 1 pond construction has commenced for 5.4ktpa LCE production at the Hombre Muerto West (HMW) lithium brine project in Catamarca Province, Argentina. This construction milestone aims to deliver lithium chloride production in H1 2025.


Highlights:

  • HMW full Phase 1 construction commenced; first fleet mobilised and working on site with more equipment scheduled to arrive next week
  • Expected delivery of first evaporation ready pond by Q1 2024; commencing a favourable evaporation path to production during the summer months
  • HWM Phase 1 production expected to during H1 2025; a premium concentrate (6% Li) product targeting 5.4ktpa of lithium carbonate equivalent (LCE)
  • Other construction activities underway to upgrade site services, camp, diesel storage, water supply, etc.
  • HMW is the highest grade lithium brine deposit in Argentina; current JORC resource of 6.6Mt LCE @ 880mg/l Li
  • Third party off-take and other strategic discussions ongoing
  • Phase 2 DFS progressing well; results on track for September 2023
The first batch of earthmoving equipment for the construction of the ponds has mobilised and is working on site, with further equipment scheduled to arrive in the next week for scaling up the material movement capacity. Other construction activities are also underway for upgrading essential services such as camp, diesel storage, water supply, etc.

The first milestone of the construction of the ponds for HMW Project is to build, line and fill with brine the first pond of the system by Q1 2024. This pond has an evaporation area of 205,000 m2, its completion is a major objective triggering the start of the evaporation path to production at the most favourable time.

As previously announced, the HMW DFS was separated into two phases. This initial Phase 1 of the DFS focuses on the production of a lithium chloride concentrate, as governed by the production permits just approved. The optimisation work is completed and will culminate in the release of a Phase 2 DFS in September 2023, addressing a full 20ktpa LCE production rate.

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented: “This is the beginning of our construction journey to production. I would like to congratulate the global Galan team for their continued support to make this happen. This is also testimony to our desire to work locally with the community and contractors whilst receiving full support from the provincial government of Catamarca, Argentina.

We have come a long way since our early days, considering Galan only obtained the original Hombre Muerto assets just over 5 years ago, and with all the delays experienced during Covid-19. This feels more real than ever for everyone at Galan. We will continue to give our best focused efforts to become a new lithium producer by H1 2025.”

Phase 1 construction fleet and crew mobilised and on site


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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