Galan Lithium Limited (ASX: GLN) has announced the results of its phase 1 definitive feasibility study for its wholly-owned Hombre Muerto West Project in Catamarca Province, Argentina.
Galan’s managing director Juan Pablo Vargas de la Vega commented: “We are delighted by the compelling economics produced from just the first phase of the HMW DFS. The re-evaluation of the DFS process and long-term production strategy will now deliver a high-quality lithium chloride product into the market which will provide Galan with strong early cash-flows.”
The DFS phase 1 has delivered an annual production rate of 5,367 recoverable tonnes of lithium carbonate equivalent, contained in a concentrated lithium chloride product for a period of 40 years.
The company’s results and analysis has provided outstanding outcomes that demonstrated the HMW Project is a very competitive and highly compelling project in the lithium brine industry, with significant upside.
The DFS is separated into two phases. Phase 1 focuses on the production of a lithium chloride concentrate, as governed by the production permits.
The DFS optimization work continues and will culminate in the release of a phase 2 DFS in September 2023, addressing full 20Ktpa LCE production rate.
“The numbers speak for themselves with an approximate two-year payback and a project NPV that represents more than twice our current market cap. Thanks to our loyal project team for their tireless commitment to the Galan cause.” Added Juan.
To find out more, please visit www.galanlithium.com.au
