Galan Lithium Phase 2 DFS Confirms Tier One Status of HMW Project
THE DRILL SERGEANT: Galan Lithium (ASX: GLN) reported results of a Phase 2 Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned Hombre Muerto West (HMW) project in Catamarca Province, Argentina.
Galan Lithium explained the HMW project DFS was separated into two phases with the initial Phase 1 DFS based on a production level of 5.37ktpa lithium carbonate equivalent (LCE) in the form of lithium chloride concentrate (as governed by the production permits).
The Phase 2 DFS has increased the overall annual production rate to 20,851 recoverable tonnes LCE, contained in a concentrated lithium chloride product for a period of 40 years.
Tier one Phase 2 DFS results demonstrate the HMW project can produce a premium high-grade lithium chloride (LiCl) concentrate of 6 per cent lithium, comparable to 13 per cent lithium oxide (Li2O) or 32 per cent LCE in H2 2026.
“The release of the Phase 2 DFS for Hombre Muerto West clearly demonstrate the world-class nature of Galan’s 100 per cent-owned project,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.
“The production volumes and low cost of production from HMW means it is truly worthy of being considered a tier one lithium brine project.
“These results fully support our DFS re-evaluation process and long-term production strategy, delivering a high-quality lithium chloride product into the market and providing Galan with strong early cash flows.
“The Board is delighted to report these outstanding financial outcomes for the project Phase 2 DFS which are robust and include an approximate 2.9-year payback and a USD 2 billion Project NPV.
“Construction of Phase 1 is already well underway with the first evaporation pond already 15 per cent complete.
“Galan looks forward to updating shareholders and investors as development continues into future phases to accelerate and ramp up production.”
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