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Galan Lithium Provides HMW Project Update

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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

 

Galan Lithium Increases HMW Resource to 8.6Mt LCE

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) managing director JP Vargas de la Vega eventually flew into Singapore in time for the company to announce an increase to the JORC (2012) reported Mineral Resource estimate for the company’s’ Hombre Muerto West project located in Catamarca Province, Argentina.

Galan Lithium has now increased its 100 per cent-owned Mineral Resources to 8.6 million tonnes of contained lithium carbonate equivalent (LCE) at 859mg/L lithium (previously 7.3Mt LCE @852mg/L Li).

The company has declared this to now be one of the highest-grade resource estimates in Argentina.

“This latest significant upgrade in the high grade, low impurity HMW Resource highlights the potential enormity of the brine resource that sits within Galan’s 100 per cent-owned tenements in Argentina,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.

“The initial HMW resource in March 2020 was 1.08 million tonnes LCE at 946mg/L lithium, upgraded in May 2023 to 6.6 million tonnes LCE at 880mg/L lithium.

“This has now been increased a further approx. 20 per cent to a tier one size of 8.6 million tonnes LCE at 859mg/L lithium, with the inclusion of our Catalina tenements.

“Coupled with our Candelas resource, Galan has a very solid foundation, and more importantly has delivered a further validation that its Hombre Muerto Salar resources fully support our four-stage lithium production target of up to 60,000 tonnes pe annum LCE.

“The HMW Project is robust and underpinned by strong financial metrics as illustrated in its Stage 1 and Stage 2 DFS results.

“We constantly evaluate opportunities to increase the value of the HMW Project in parallel with continuing to construct Stage 1 as we look forward to first commercial production in 1H 2025.”

The updated HMW Mineral Resource was supported by new core porosity data from Santa Barbara, Casa del Inca III and Del Condor tenements.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Galan Lithium Phase 2 DFS Confirms Tier One Status of HMW Project

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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.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Galan Lithium Increases HMW Project Resources

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) announced a further consolidating increase to the JORC 2012-compliant reported Mineral Resource estimate for the company’s Hombre Muerto West project (HMW Project) located in Catamarca Province, Argentina.

This is Galan’s fourth upgrade for the project that has again increased the global JORC Resource inventory as well as elevating the JORC Resource category and confidence in the HMW Resource inventory.

The company said the latest resource upgrade enhanced its objective to achieve the conditions necessary to commence construction and commercial production at HMW in the shortest practical timeframe.

The HMW Measured Mineral Resource now exceeds 4.7 million tonnes of contained lithium carbonate equivalent (LCE) product grading 873mg/L lithium.

The total HMW Mineral Resource (Measured + Indicated + Inferred) has increased by approximately 14 per cent to now sit at over 6.6 million tonnes of contained LCE grading at 880mg/L lithium.

“This latest increase in the high grade, low impurity HMW Resource highlights the potential enormity of the brine resource that sits within Galan’s 100 per cent owned tenements in Argentina,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.

“We have continued to acquire tenements and continued to drill holes since our maiden resource was announced at HMW.

“The initial HMW resource in March 2020 was 1.08 million tonnes at 946Mg/L lithium.

“This now sits at a world class size of 6.6 million tonnes contained LCE at 880mg/l lithium.

“Coupled with our Candelas resource, Galan has a very solid foundation, and more importantly confidence, that its Hombre Muerto Salar resources fully support its four-stage lithium production target of up to 60,000 tonnes per annum LCE.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Galan Lithium Moves to Full Ownership of Candelas Project

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) managing director JP Vargas de la Vega is always up for a chat and next week at the RIU Explorers Conference will be no exception.

Vargas de la Vega will no doubt be enthusiastic to spruik the company’s progression to 100 per cent-ownership of the Candelas project in the Catamarca Province, Argentina.

A PEA Study completed in 2021 estimated a production profile for Candelas of 14,000 tonnes per annum of battery grade lithium carbonate product including some technical grade product for the first three years.

The Candelas project is supported by a full Preliminary Economic Assessment (PEA) and a JORC 2012 Resource and is close to the company’s Hombre Muerto West project.

“The Candelas project was our first project foray into Argentina, and we now have final full ownership of the project,” Vargas de la Vega said in the company’s ASX announcement.

“Over the journey, our focus has understandably been on Hombre Muerto West but once we complete the DFS and associated works and infrastructure projects we will move forward on Candelas.

“With our five years of lithium knowledge in the region, we will initially re-visit all our geological data and analysis.

“Don’t forget, Candelas is a stand-alone, lithium brine project in the Catamarca province, with no water access concerns, that shows robust economic returns.”

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Galan Lithium Reports Successful 2022 Pumping Test Program

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THE DRILL SERGEANT: Galan Lithium announced completion of the company’s 2022 brine pumping test campaign at the HMW Project in Catamarca Province, Argentina.

A total of three production pumping wells were completed during the second half of 2022 – two at Pata Pila (PPB-01-21 and PPB-02-22) and one at Rana de Sal (PBRS-01-21)

The results from the three production wells tested at HMW, confirmed that the HMW Project is ready to provide the brine flow and quality for the 4,000 tonnes per annum LCE pilot development.

Strong extraction and production well chemistry results from all three long-term brine pumping tests support the Definitive Feasibility Study (DFS) as it approaches completion.

Further exploration drilling and sampling has continued across the HMW Project tenements to complement surface geophysical work.

“The positive long-term pumping brine test results are extremely significant by providing certainty of brine flow extraction, lithium grade, and cementing the HMW reserve model,” Galan Lithium exploration manager Álvaro Henríquez said.

“We have further demonstrated a high production capacity at both Pata Pila and Rana de Sal.

“Importantly, we have extended the reservoir quality throughout the main (uphill) alluvial deposits of Pata Pila.

“Recent results at Pucara de Salar also show further potential to expand the total HMW Project resource and reserve.

“All of the above factors, keep adding empirical support for the world-class nature of the HMW Project and its continued rapid advancement and development to production.”

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Galan Lithium Claims New Pegmatite Discovery at Greenbushes South Project

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) claimed discovery of a new outcropping pegmatite with 500m-plus strike length at the Greenbushes South lithium project in Western Australia.

Greenbushes South is a Joint Venture between Galan (80%) and Lithium Australia (ASX: LIT) (20%).

The company reported there are further strong indications that this pegmatite remains open and continues along strike and builds on the previous pegmatite discovery announced in June.

“Initial exploration outcomes at Greenbushes South have been excellent,” Galan Lithium managing director JP Vargas de la Vega said in the company’s ASX announcement.

“The team is understandably excited about the fact that airborne geophysical targeting has successfully driven our field mapping and sampling focus, and already led to multiple new sizeable pegmatite outcrops being discovered.

“It is also important to note that the discovered pegmatites have similar macroscopic mineralogy to those pegmatites described at the Greenbushes Lithium Mine to the north.

“Today’s results take us a step further.

“We now have confirmation of anomalous lithium concentration levels in the soil samples that were taken over the initial pegmatite discovery at the GS11 target zone.

“Geological mapping and geochemical sampling activities are ongoing.

“There are further soil and rock sample assays pending, including those to be submitted from our newest pegmatite discovery.

“We have also launched a pilot ground geophysics program to overlay our exploration targeting efforts at Greenbushes South.

“All of this work is driving us towards the key outcome of premium target locations for our initial drilling program.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: email@galanlithium.com.au

 

Web: www.galanlithium.com.au

 

Galan Lithium Drills HMW Project Extensions

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) has its latest drilling campaign underway at the company’s 100 per cent-owned Hombre Muerto West lithium project (HMW) located on the Western Basin of the Hombre Muerto salar in Catamarca Province, Argentina.

The first diamond drillhole of the program, PP-02-22, was completed at Pata Pila to a final depth of 450m.

The hole was designed to extend the company’s knowledge in the Pata Pila licence area to enable it to build-out the hydrogeological models required to confirm Reserve estimates at the HMW project.

The drillhole was designed to provide key geological data for testing extension to the existing HMW project Mineral Resource, in both horizontal and vertical dimensions, from the salar limits.

Galan Lithium declared the results from PP-02-22 delivered substantial confirmation of, and further potential upside to, the existing Mineral Resource estimate at the HMW project.

These results are set to be incorporated into an updated Mineral Resource estimate for the HMW project, which is on track for completion during Q3 CY2022.

“This exploration diamond hole has further unlocked the potential of the world-class lithium brine resource held at the HMW project,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.

“The results have enhanced our hydrogeological modelling, a key to confirmation of Reserve estimates, and delivered further Mineral Resource upside at HMW.

“Following the new exploration target areas identified by the recent TEM geophysical survey, we now look forward to aggressively drilling these additional potential HMW Mineral Resource expansion zones from this quarter through the rest of 2022.”

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@galanlithium.com.au

Web: www.galanlithium.com.au

 

Galan Lithium Surveys Positive Anomalous Soil Assays at Greenbushes South

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) recently completed the first exploration sampling and mapping work undertaken by the company at its Greenbushes South lithium project in Western Australia.

The Greenbushes South lithium project is a Joint Venture between Galan (80%) and Lithium Australia (ASX: LIT) (20%).

Galan Lithium has received the results of a completed geochemical survey covering 425 soil samples and 14 rock chip samples taken at the northern edge of its E70/4790 tenement and at the mapped location of the Donnybrook-Bridgetown Shear Zone (DBSZ).

The DBSZ a primarily associated with syntectonic emplacement of the lithium-bearing pegmatites of the Greenbushes mine to the north.

After the raw data from the survey has been processed it will be sent to Southern Geoscience Consultants, who have been contracted to interpret results for potential lithium targets.

Pathfinder elements such as arsenic and antimony have been demonstrated in elevated levels in soil samples near the trace of the DBSZ.

When combined with historical data in the area, Galan believes this indicates the strong potential for pegmatite targets within pending applications to the north.

Other pathfinder elements such as tin and rubidium show a broad lag signal east of the DBSZ.

“We are excited with the prospectivity at our Greenbushes South lithium project and are encouraged with the new soil sample results that continue to indicate that the tracing elements that are found within the Donnybrook sheer zone may well host lithium pegmatites the same as in the Greenbushes mine bordering to the north of our tenements,” Galan Lithium managing director JP Vargas de la Vega said in the company’s ASX announcement.

“Galan looks forward to further strengthening its geological data and knowledge within its tenements as soon as the report from our consultants is completed.

“The results will formulate our next exploration phase when we will be able to generate and prioritise specific exploration targets in the area.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@galanlithium.com.au

 

Web: www.galanlithium.com.au

 

Quarter Time Wrap.

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COMMODITY CAPERS: Company Quarterly Reports are a good way to catch up on what’s been happening over the past three months. Here we take a quick glimpse at a few.

Caspin Resources (ASX: CPN) completed a solid December Quarter with highlights including:

At the Yarawindah Brook project RC drilling at the XC-22 prospect intersected further nickel-copper sulphides that included a zone of up to 40 metres of disseminated nickel and copper sulphides in serpentinised ultramafics and pyroxenites in drillhole YARC0022, including a 2m zone of up to 20 per cent sulphides (assays pending).

Drilling was carried out of drillhole YARC0027 (assays pending), 175m along strike and down dip of YARC0022 that intersected gabbro and pyroxenite sequences with trace to minor disseminated sulphides.

Caspin sees the XC-22 prospect to be emerging as a separate prospect with mineralisation remaining open at this stage.

Other work has resulted in large-scale PGE-nickel-copper mineralisation trends emerging at the Central Yarabrook Hill prospect.

Continuity of mineralised ultramafic has been demonstrated over 1,500m down-dip and 3,000m of strike extent.

Multiple target concepts are still to be evaluated.

Caspin completed an EIS-funded stratigraphic diamond hole with multiple zones of sulphides intersected and lithologies supporting the company’s conceptual geological model.

Drilling is scheduled to recommence in February 2022 with several Phase 2 holes to be extended with ‘diamond tails’ in addition to drilling new, previously untested targets.

Airborne Electromagnetic survey now providing complete project-wide coverage Corporate.

The company is in a strong financial position with $12.3 million in the bank at end of quarter.

 

The focus for Argentina-focused lithium play Galan Lithium (ASX: GLN) during the December Quarter was ongoing feasibility works, construction activities and further drilling at the company’s high-grade Hombre Muerto West (HMW) project and the completion of the PEA/scoping study for the Candelas project.

Both projects are in the Hombre Muerto West salt flat in the South American Lithium Triangle.

Galan completed an updated stronger, compelling HMW economic study, resulting in unleveraged pre-tax NPV of US$2.2 billion, IRR of 37.5 per cent and less than three year payback period.

The HMW Feasibility Study was awarded to Hatch an independent firm that is anticipated to work with Galan’s close knit, highly experienced group of consultants.

Long term average lithium price assumption of US$18,594 per tonne lithium carbonate equivalent (LCE) battery grade used for both the HMW and Candelas projects economic assessments.

The company achieved excellent Preliminary Economic Assessment (PEA) results for Candelas, including unleveraged pre-tax NPV of US$1.225 billion, IRR of 27.9 per cent and a four year payback period.

The study determined an initial capital cost of US$408 million with a long project life of 25 years at 14,000 tonnes per annum of battery grade LCE.

A competitive cash production cost for Li2CO3 of US$4,227/t would position Candelas as a low-cost developer in the lithium industry.

 

During the December Quarter Neometals (ASX: NMT) advance progress of the company’s Lithium Battery Recycling Project (Neometals 100%, SMS earning into 50% through Primobius GmbH incorporated JV).

Neometals has developed a sustainable process flowsheet targeting the recovery of battery materials contained in production scrap and end-of-life lithium-ion batteries (LIBs) that might otherwise be disposed of in land fill or processed in high-emission pyrometallurgical recovery circuits.

Neometals’ process flowsheet (LIB Recycling Technology) targets the recovery of valuable materials from consumer electronic batteries (devices with lithium cobalt oxide (LCO) cathodes), and nickel‐rich EV and stationary storage battery chemistries (lithium‐nickel-manganese‐cobalt (NMC) cathodes).

The LIB Recycling Technology is designed to recover cobalt, nickel, lithium, copper, iron, aluminium, carbon and manganese into saleable products that can be reused in the battery supply chain.

A pilot trial at SGS Lakefield, Canada in 2019/20 produced cathode-grade nickel and cobalt sulphate products which collectively represent approximately 80 per cent of the value of the basket of products recovered.

A demonstration scale trial commenced in DecQ 21, which is expected to generate data for the company’s Feasibility Study.

Source: Company announcement

Neometals entered an incorporated 50:50 Joint Venture with SMS group GmbH, called Primobius GmbH.

Primobius was incorporated to co-fund and complete final stage evaluation activities and to consider commercialisation of the LIB Recycling Technology.