Galan Lithium Provides HMW Project Update

THE BOURSE WHISPERER: Galan Lithium (ASX: GLN) updated us all on recent progress made at the company’s 100 per cent-owned Hombre Muerto West (HMW) Phase 1 lithium brine project in Argentina.

Galan Lithium has continued its lithium inventories build in the HMW Phase 1 ponds, in line with Feasibility Study expectations, which will provide the feedstock for the HMW processing plant.

The company has now reached 40 per cent completion of the HMW Phase 1 project with the ponds system sitting at 60 per cent capacity.

The designed ponds system can allow an inventory, until H2 2025, of up to 10,000 tonnes per annum lithium carbonate equivalent (LCE) without the need for processing.

The approximate 750,000 square kilometres of evaporation area that has been built, currently holds 2,800 tonnes LCE contained inventory.

This current evaporation area is sufficient to produce a lithium chloride volume of approximately 3,000 tonnes per annum LCE.

Having slowed the pace of construction activities to save cash, Galan now expects first production from HMW to be within H2 2025.

“We are very proud of the solid progress made to date especially in light of current market conditions,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.

“During this time, the Board also made the prudent decision to strategically slow construction activities so as to preserve our cash.

“Our current in situ inventory of 2,800 tonnes LCE has been the first step of our production pathway.

“Our inventory will continue to increase as we have a low energy cost operation that only requires brine pumps to operate.

“As a result, once Galan finalises sales and funding arrangements, which are progressing well, the company will be in a strong position to produce a competitive low-cost lithium product.

“It should also be noted that we have received strong international market interest in our HMW lithium concentrate.

“In our view, this evidence indicates that the current lithium pricing environment and market oversupply is not expected to be a long term trend.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE