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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
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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