Why Has Galan Lithium Chosen HMW for Its Phase 1 Lithium Project?
Galan Lithium Limited
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Why Has Galan Lithium Chosen HMW for Its Phase 1 Lithium Project?

Galan Lithium's HMW Project: Advancing Towards Premium Lithium Production

January 9, 2024 - Galan Lithium Limited (ASX:GLN), a leading lithium exploration and development company, has provided an encouraging update on the HMW (Hombre Muerto West) Phase 1 lithium brine project. The project, wholly owned by Galan, is rapidly progressing towards lithium chloride production, slated for the first half of 2025.

Milestones in HMW Project Development

The company has nearly completed the earthworks for Pond 1, marking a significant step in the project's development.

Commencement of Pond 1 Liner Installation

Liner installation in Pond 1 has begun, with a reported 5% completion. This process is crucial for the evaporation process that is central to lithium extraction.

Pond 2 Construction Underway

Concurrently, construction on Pond 2 has commenced, with 10% completion reported. This signifies Galan's commitment to a phased and efficient project development.

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Production Wells Progress

Out of the 23 production wells required for the first two phases, nine have been constructed, exceeding the immediate requirement of six wells for Phase 1 production.

Strategic Outlook: HMW as a Tier One Project

The HMW project is set to produce a premium high-grade lithium chloride (LiCl) concentrate, boasting a 6% Li content. This concentration is comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE).

Cost Efficiency

Galan Lithium emphasizes the low all-in sustaining costs of the HMW project. Positioned in the first quartile of the lithium industry's cost curve, the project presents a competitive advantage.

Long-Term Reserve Estimate

An initial reserve estimate suggests a 40-year lifespan for the project, underlining its sustainability and long-term value.

Resource Estimate Update

An updated resource estimate is expected in the first quarter of 2025, which will provide further insights into the project's potential.

Galan's Exploration and Development Footprint

The HMW project is divided into four production phases. Phase 1 focuses on producing 5. 4ktpa LCE of lithium chloride concentrate by H1 2025. Subsequent phases will escalate production, culminating in a Phase 4 target of 60ktpa LCE by 2030, incorporating brine from the Candelas project.

Glencore Site Visit and Due Diligence

A site visit by Glencore is being planned as part of the ongoing due diligence process, indicating potential strategic partnerships and investment interests.

About Galan Lithium Limited

Galan Lithium Limited, listed on the ASX under the ticker GLN, is at the forefront of lithium exploration and development. The company's flagship projects, HMW and Candelas, are located in Argentina's renowned Hombre Muerto Salar, within the prolific 'lithium triangle'. These projects are known for hosting lithium brine of the highest grade with low impurity levels.

HMW Project: A Strategic Asset

Located near established lithium operations, the HMW project encompasses 21 mining tenements with promising deep basin potential. An updated Mineral Resource estimate in May 2023 revealed a total of 6. 6 Mt of LCE.

The Candelas and Greenbushes South Projects

The Candelas project presents substantial brine volume potential, with a maiden resource estimate of 685 kt LCE. Additionally, Galan's Greenbushes South Lithium Project in Western Australia, near the Greenbushes Lithium Mine, adds another strategic asset to the company's portfolio.

Galan Lithium's HMW project update underscores the company's commitment to becoming a key lithium producer in Argentina by 2025. With its strategic project phases, cost-effective approach, and promising resource estimates, Galan Lithium is well-positioned to make a significant impact in the global lithium market.

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