Galan Lithium Commences Phase 1 Evaporation Process

Galan Lithium Limited (ASX: GLN) has shared progress updates on its Hombre Muerto West (HMW) Phase 1 lithium brine project. The company remains steadfast in its commitment to delivering a low-cost, high-grade lithium chloride (LiCl) concentrate by H1 2025.

Galan’s managing director, Juan Pablo (JP) Vargas de la Vega, commented: “The completion of earthworks and the installation of liners for Pond 1 represents a significant milestone for the HMW Phase 1 construction team. Evaporation has now commenced which is the first step of the company’s long-term production schedule for its low-cost, low-risk lithium chloride development strategy, as Galan looks to become the next lithium producer in Argentina in H1 2025.”

The extensive earthworks and liner installation for Pond 1, spanning 2.4km, have been successfully completed. This critical milestone sets the stage for the next phase of production. The evaporation process has commenced, and construction of earthworks for Pond 2 is progressing well, with 65% completion. The company anticipates imminently commencing the liner installation for Pond 2. Nine production wells have been constructed, providing operational flexibility. Notably, Phase 1 production requires only six wells.

The HMW Project stands as a tier one endeavour, poised to yield a premium high-grade LiCl concentrate containing 6% lithium (Li). This concentration is comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE). Additionally, HMW ranks in the first quartile of the lithium industry’s cost curve. With an initial reserve estimate spanning 40 years, our all-in sustaining costs remain impressively low.

At an operating cost of A$3,510/t of LCE, the equivalent Li2O operating cost in SC6 ranges from A$310 to $350/t. These figures translate to robust production margins, especially considering current spot prices.

The HMW project has four phases:

Phase 1 (H1 2025): A Definitive Feasibility Study (DFS) targets the production of 5.4 kilotons per annum (ktpa) LCE of lithium chloride concentrate, in accordance with approved production permits.