Galan Lithium Limited (ASX: GLN) updates 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.
The company continues its steady progress in advancing its low cost, high grade HMW project to production in a timely manner. Overall completion of the HMW project now sits at 33% with the ponds system already at 45% completion. Approximately 600,000m2 of evaporation area has now been built, currently housing 1,000t LCE contained inventory. This evaporation area is sufficient to produce a lithium chloride volume of approximately 2.4Ktpa LCE. The key processing parameters, including raw brine well average flow rates, Li grades and evaporation rates are all aligned with the Phase 1 DFS.
Based on the rate of construction and the results achieved to date, the HMW project remains on track to start production in H1 2025. In addition, Galan’s team are analyzing options to reduce capital expenditure, these opportunities are focused on selecting the minimum infrastructure required to commence production of Phase 1.
Multiple trade-off exercises are being assessed such as the analysis of rental options for energy supply, reduction of the size for selected buildings, usage of independent smaller control systems, instead of a larger central control system for all facilities.
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.
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