Galan Lithium begins well pumping tests for Hombre Muerto West lithium brine project

Galan Lithium ASX GLN Hombre Muerto West Argentina pumping test
Well pumping tests will provide critical information for the Hombre Muerto West definitive feasibility study, which is due for completion by the end of the year.

Galan Lithium (ASX: GLN) has begun long-term pumping tests as part of the definitive feasibility study for its flagship Hombre Muerto West brine project in Argentina’s Catamarca Province.

The program will comprise two pumping wells at Pata Pila and another two at Rana de Sal within the project.

With each pumping well, two-to-three nearby monitoring wells will also be constructed.

Pump testing and analysis will provide critical hydraulic and chemical data for the definitive feasibility study in addition to the planned reserve model.

The main objective of the testing includes determining the permeability, vertical anisotropy and storage coefficient of the brine reservoirs.

Galan also aims to verify the maximum sustainable pumping rate for each well and register flow rate and brine level, along with chemical and physical parameters.

The program is expected to finish by the end of September, with the definitive feasibility study due for release by the end of the year.

HMW lithium brine project

Galan noted the reserve model developed from the pumping tests will provide the basis for the production capacity parameters at HMW, as well as the expected brine feed for the life-of-mine.

Pilot plant operations have begun, with a 3,000 square metre evaporation pond constructed.

Brine filling of the pond is now complete with evaporation testing underway.

Lithium carbonate production from HMW is targeted for 2025, with 20,000 tonnes per annum of the chemical to be generated over 40 years.

An updated economic study that was revealed for HMW late last year gave the project a net present value of US$2.2 billion, with average life of mine earnings before interest tax depreciation and amortisation of US$287 million a year.

HMW is within the Hombre Muerto Salar, which is part of South America’s lithium triangle.

Major producer Livent’s project borders HMW.

Galan pointed out with major producers in the region, there is “significant infrastructure” already in place and “excellent government and community support”.

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