Galan Lithium preparing to unleash world-class HMW study results
A cashed-up Galan Lithium (ASX: GLN) is set to reveal updated study results for the development of its world-class Hombre Muerto West (HMW) lithium project in Argentina.
The company has confirmed that an upgraded definitive feasibility study (DFS) has been delivered to the company’s board for final review.
At the same time the HMW project team is wrapping up operating operational expenditure (opex) and capital expenditure (capex) costings and documentation in the lead-up to an ASX review.
Initial two phase development
The new studies have focussed on an approach to define an initial low-cost development of the HMW lithium concentrate.
The DFS has been separated into two phases, with an initial first production phase of four kilotonne per annum (ktpa) of lithium chloride concentrate (LCE) equivalent production. That level is in line with the company’s previously submitted production permits, which are expected to be approved in the near future.
The company says the new phased strategy will assist it in achieving its original goal of being a producer by H1 of 2025, with the reduced scale of phase 1 providing opportunities to fast-track items such as construction and industrial scale piloting.
Galan is forecasting that phase 2 of the DFS, addressing 20ktpa LCE production rates, will be unveiled in August 2023, following the completion of ongoing DFS optimisation work.
The vastly experienced Juan Carlos Barrera, who joined Galan’s senior management team as a consultant and advisor to the Board in March 2023 and newly appointed non-executive director, Claudia Pohl, are part of the team reviewing the DFS and the project’s Environmental Impact Assessment (EIA).
Galan has also revealed that as part of their assessments, Mr Barrera and Ms Pohl have also confirmed the high quality of the lithium chloride concentrate brine and its attractiveness for the offtake market cusomers.
Updated production profile
The company’s eventual goal is to increase its production profile to 60ktpa of LCE across four stages with Phase 1 initially producing four ktpa of LCE.
Phases 2 and 3 will produce 20ktpa and 40ktpa LCE respectively from HMW, while Phase 4 – is targeting 60ktpa LCE with input from both HMW and Galan’s nearby Candelas project.
Upgraded HMW resource
In early May, Galan Lithium released a significant increase in its JORC (2012) reported mineral resource estimate for the HMW Project, with the new numbers rising to 6.6Mt LCE at 880 milligrams per litre.
The latest resource upgrade has enhanced Galan’s objective to accelerate the four phase HMW development.
Capital raising supporting new studies
In mid-May Galan boosted its funds to support its Argentinian and Australian lithium portfolio with a strongly supported $31.5 million placement.
Funds from the over-subscribed placement are being utilised for further development of the HMW and Candelas projects in Argentina and the Greenbushes South project in Western Australia.
The raising was strongly supported by both international and local sophisticated investors.
Key items to be funded by the raising include the purchase of long lead items in preparation for stage 1 of the HMW development.