Maiden Filling of Pond 1 Commences at Hombre Muerto West

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide a further update on the progress of construction activities at its 100% owned Hombre Muerto West (HMW) Phase 1 lithium brine project, with lithium chloride production expected in H1 2025.

Project Highlights:

• Initial filling of Pond 1 commences at HMW Project
• Evaporation process to commence within two weeks (after completion of quality test); the first major step of the long-term production schedule
• Pond 1 liner installation rapidly moving forward (40% completion)
• Pond 2 earthworks construction progressing well (20% completion)
• The HMW Project is a tier one project that will produce a premium high grade lithium chloride (LiCl) concentrate of 6% Li, comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE) in H1 2025
• Low all-in sustaining costs; HMW in the 1st quartile of lithium industry’s cost curve
• Operating cost of $US3,510/t LCE equates to a low Li2O equivalent operating cost of SC6 $US310/t-$US350/t
• Updated resource estimate due in Q1 2024
• Glencore due diligence site visit later this week

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

“Our experienced project team have been implementing a quicker route to start evaporation while construction continues for HMW Phase 1. We are taking advantage of the summer season whereby a buffer wall has been installed at the one third mark of Pond 1. The commencement of the filling of Pond 1 is another significant major milestone for the HMW project and I congratulate the entire Galan team. The initial partial evaporation process will commence in approximately 14 days with the full fill of Pond 1 remaining on track for Q1 2024.”

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 H1 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 very positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).

Filling of Pond 1 commences

The liner installation process on Pond 1

The overall progression of liner installation on Pond 1

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