Outstanding Initial Well Test Results at HMW Project

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide an update on the long- term pump testing program for its 100%-owned Hombre Muerto West Lithium Project (HMW Project), located on the Western Basin of the Hombre Muerto salar in Catamarca Province, Argentina. These tests are an integral part of the current Definitive Feasibility Study (DFS) for the HMW Project.

Highlights:

• 72-hour constant rate testing successfully completed at first Pata Pila pumping well (PPB-01-21).
  • Brine sampling confirms high grade resource (Li > 910 mg/L).
  • Hydraulic testing saw aquifer response showing favourable conditions for high volume brine production (15 – 20L per second).
• 30-day longer term pumping test started and flowing steadily.
  
• Porosity test (RBRC) for specific yield on second Pata Pila well core samples returned positive results (range of 10.1 – 21.0%, mean of 14.1%).
• Pumping tests to be completed on three further wells; a second well at Pata Pila and two wells at Rana de Sal.
• Testing of first well at Rana de Sal (PBRS-01-21) is imminent.

“We are extremely pleased with the outcomes from the 3-day constant rate pump test at the first Pata Pila well, PPB-01-21. High lithium grades, porosity and brine flow rates are a powerful combination for driving operational efficiency and economic performance. These outstanding hydrological outcomes are paramount to the project DFS foundations and further validates the world-class nature of the lithium brine resource we hold at HMW.

The results are a ready demonstration of the substantial progress we are making in advancing the Project. They also represent key de-risking of the planned HMW development. While we are focussed on a substantially lower risk, conventional process route and project development at HMW, we are ensuring that every aspect of our planned operation at HMW is comprehensively evaluated and proven, both technically and commercially.”

Well pump testing program update

The well pump testing program is advancing at the HWM Project in order to evaluate the hydraulic properties of the target brine bearing aquifers. A series of hydraulic tests have been successfully performed on the first pumping well at Pata Pila (PPB-01-21). These include a step test and constant rate test.

Long term (30-day) pumping tests at PPB-01-21 began on 30 June and are set to conclude on 30 July 2022. Brine levels and samples for geochemical analysis will be collected throughout the testing period. This series of pump tests are planned to be conducted across a further three wells, being a second well at Pata Pila and two wells at Rana de Sal. Testing of the first well at Rana de Sal (PBRS-01-21) is expected to commence in the next few days.

All well pump test data is to be incorporated into the upcoming HMW Resource/Reserve model. This will form part of the current DFS for the HMW Project, being undertaken by Hatch Engineering.

Constant rate test outcomes at Pata Pila: High lithium grades and brine flow rates

The constant rate test was performed for 72 hours and observed with three (3) different piezometers. Aquifer response during the pumping test indicates favorable conditions (permeability) for brine production with expected flowrates between 15 – 20 L/s per well at Pata Pila.

Fourteen brine samples were collected throughout the duration of the test and analyzed for lithium (Li) at the Alex Stewart laboratory. Chemical results positively confirm a high-grade brine resource, with an increasing Li grade during pumping, stabilising at approximately 910 mg/L (see Figure 1 for results). The site operations and sampling procedures were supervised by SRK Consultants.

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