Galan Lithium secures full ownership of Candelas lithium brine project
Galan’s study will incorporate learnings from a preliminary economic assessment of the Hombre Muerto West project released last year.
Galan Lithium (ASX: GLN) has taken full ownership of its Candelas brine project in Argentina, which has an existing indicated resource an initial production forecast of 14,000 tonnes per annum of lithium carbonate equivalent.
The company now wholly-owns the title to the asset, which is unencumbered by any third-party royalties.
Prior to focussing on the nearby Hombre Muerto West (HMW) lithium brine project 40km away, Galan firmed-up an indicated resource for Candelas and completed a preliminary economic assessment.
The project’s resource totals 685,000t at 672 milligrams per litre of lithium and was based on eight holes drilled for 3,537m.
Strong economics
An economic study was completed in November 2021 and revealed 14,000tpa of lithium carbonate equivalent could be generated from Candelas for an initial 25 years.
The study estimated capital expenditure of US$408 million (A$585 million) would be required to develop Candelas, which would bring in annual earnings before interest tax depreciation and amortisation of US$188 million (A$270 million).
Galan managing director JP Vargas de la Vega said once the company has completed its definitive feasibility study on HMW it will begin advancing Candelas again.
“The Candelas project was our first project foray into Argentina and we now have final full ownership of the project.”
“With our five years of lithium knowledge in the region, we will initially revisit 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,” Mr Vargas de la Vega added.
Hombre Muerto basin
Candelas is about 40km east-southeast of HMW and lies in the same Hombre Muerto basin within South America’s famed “lithium triangle”.
According to Galan, Hombre Muerto is one of the most prolific salt flats in the world and is home to other major lithium brine projects and operations, including tenure owned by majors Livent, Allkem and POSCO.
Candelas lies within a structurally controlled basin known to host lithium brines that is roughly 15km long and 4km wide.
It comprises 14 exploration permits and covers 24,072 hectares.
The project is also 1,400km northwest of Argentina’s capital Buenos Aires and 170km from the city of Salta.