Galan Lithium

HMW Project Update

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide a further update on the progress at its 100% owned Hombre Muerto West (HMW) Phase 1 lithium brine project. Lithium inventories continue to build in the HMW Phase 1 ponds, in line with Feasibility Study expectations, which will provide the feedstock for the HMW processing plant. Over the last month, Galan has re-worked its construction activities to preserve cash with a view to procuring both a definitive sales agreement and an associated funding package for the Project in the short term.


  • In situ lithium mining inventory continues to build with over 2,800t LCE accumulating in ponds.
  • Overall project completion is close to 40%.
  • Project construction continues to advance at a pace commensurate with preserving cash. First production from HMW is now targeted for H2 2025.
  • Average brine flow rate, well lithium grade and evaporation rates are in line with or better than those utilised in the Phase 1 Feasibility Study.
  • Pond inventory management system in place to protect inventory and optimise evaporation process.
  • Offtake partners shortlisted with Galan progressing towards a definitive sales agreement and associated funding package.

First 3 ponds completed, filled and evaporating

Overall completion of the HMW Phase 1 project now sits at approximately 40% with the ponds system at 60% capacity. The designed ponds system can allow an inventory, until H2 2025, of up to 10,000tpa LCE without the need for processing. Approximately 750,000 m2 of evaporation area has now been built, currently housing 2,800t LCE contained inventory. This current evaporation area is sufficient to produce a lithium chloride volume of approximately 3.0 ktpa LCE. The key processing parameters, including brine well average flow rates, lithium grades and evaporation rates are all aligned with the Phase 1 DFS. Due to the slower pace of construction activities, first production from HMW is now expected to be within H2 2025.

As previously announced, the HMW project was separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H2 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).

HMW Project looking south

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“We are very proud of the solid progress made to date especially in light of current market conditions. During this time, the Board also made the prudent decision to strategically slow construction activities so as to preserve our cash.

Our current in situ inventory of 2,800t LCE has been the first step of our production pathway. Our inventory will continue to increase as we have a low energy cost operation that only requires brine pumps to operate. As a result, once Galan finalises sales and funding arrangements, which are progressing well, the Company will be in a strong position to produce a competitive low-cost lithium product.

It should also be noted that we have received strong international market interest in our HMW lithium concentrate. In our view, this evidence indicates that the current lithium pricing environment and market oversupply is not expected to be a long term trend.”


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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