Galan Lithium Limited (ASX: GLN) has provided an 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.
Galan’s managing director, Juan Pablo Vargas de la Vega, commented: “We are very proud of the solid progress being made by the HMW Phase 1 construction team and Galan is well on its way towards their long-term production journey for its low-cost, low-risk lithium chloride development strategy. We remain firm in progressing our lithium chloride strategy and are confident that our production approach, including key tenement acquisitions, permitting and offtake arrangements put Galan in a good place to becoming the next lithium producer in Argentina in H1 2025.”
Galan continues its steady progress in advancing its low cost, high grade HMW project to production in a timely manner. 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 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. This LiCl product results in 85 times the concentration of contained Lithium compared to raw brines sourced from the Hombre Muerto Salar.
Galan’s 6% LiCl concentrate contains more than twice the Li content of Spodumene concentrates exported from Australia. Galan is confident on the viability of its LiCl production strategy. There is an established market precedent for the sale of liquid LiCl concentrate in the industry, including over 10 years of exports to China by SQM in Chile. Domestically, the potential addition of the premium HMW high grade, low impurity LiCl product is likely to improve the performance of any lithium carbonate plant in northern Argentina. It is expected that there will be up to 10 downstream processing plants operating in Argentina within the next 5 years. The HMW production process, to produce a high grade lithium chloride concentrate (6% Li or 32% LCE), uses very little fresh water and considerably less water than the subsequent conversion to lithium carbonate or hydroxide, underpinning the low environmental impact of Galan’s chloride strategy.
Furthermore, water for the HMW Project is to be sourced directly from in situ dedicated water wells. Construction permits for Phase 1 were granted in August 2023, whilst the EIA for Phase 2 was lodged with the Catamarca government in December 2023. Galan is confident that the Phase 2 permitting process is on track with continued strong support from local communities and government. Past tenement acquisitions, outside the actual Hombre Muerto salar, have proven to be prudent with ground conditions suitable for pond construction.
To read more about this, please visit www.galanlithium.com.au
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