Galan Lithium announces 18% increase in resource estimate at Hombre Muerto West
Galan Lithium (ASX: GLN) has achieved an 18% increase in its estimated mineral resources at the Hombre Muerto West (HMW) lithium brine project, releasing one of the highest-grade resource estimates ever declared in Argentina.
The company’s fourth significant resource upgrade in four years has seen Galan’s mineral resources jump up to 8.6 million tonnes of lithium carbonate equivalent (LCE) at 859 milligrams per litre lithium from 7.3 Mt LCE at 852 mg/l lithium.
Galan managing director Juan Pablo Vargas de la Vega said the four upgrades since March 2020 have also enhanced the resource category classifications and confidence in the viability and robustness of the HMW project.
Production on target
The latest upgrade has provided support for Galan to achieve the necessary production conditions for Stage 3 (40Ktpa LCE) of its four-stage lithium production target of up to 60,000 tonnes per annum LCE.
“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%-owned tenements in Argentina,” Mr Vargas de la Vega said.
“The initial HMW resource in March 2020 was 1.08Mt LCE @ 946 mg/l lithium, upgraded in May 2023 to 6.6Mt LCE @ 880 mg/l lithium.”
“This has now been increased by a further approximately 20% […] 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.”
Phase 1 progress
Galan is on target for first lithium chloride production in H1 2025 with a number of key activities recently completed or underway.
An initial Phase 1 definitive feasibility study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H1 2025.
The Phase 2 DFS identified a target of 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030.
Phase 4 will include lithium brine sourced from both HMW and the 100%-owned Candelas project.
Strong funding support
Meanwhile, Galan has received strong support for its development and growth plans with the company receiving applications from eligible shareholders totalling just over $4 million, significantly above the original $1.5m raising target.
Mr Vargas de la Vega said the demand from Galan shareholders under the share purchase plan (SPP) was testament to the continued support the company is receiving.
The terms and conditions in the SPP offer provided the company with discretion to accept additional funds that Galan has exercised, increasing the size of the offer to $4.003m.