Galan Lithium (ASX: GLN) says completion of conceptual modelling at its Argentine project yielded competitive results, possibly ranking it among the best of the new lithium brine projects “in the world”.
The work shows that the Candelas deposit, located within the 25,000ha of its Hombre Muerto salar project, has high lithium recovery, low impurities and will have a smaller pond footprint.
This all points to low cost, profitable lithium production especially given the Hombre Muerto salar’s proven high grade/low impurities setting, the company said.
The modelling showed there was potential for optimised brine yielding up to 3.06% lithium making it suitable for the next processing step at the lithium carbonate plant.
Project stacks up against others in Lithium Triangle
Managing director Juan Pablo Vargas de la Vega said the company was excited that the preliminary results for Candelas stack up so well compared with the pipeline of new developing lithium brine projects in what is now known the Lithium Triangle, which covers the north-west of Argentina and adjoining areas of Bolivia and Chile.
“Our work continues to clearly confirm and substantiate that the Hombre Muerto chemical setting of high grade/low impurities is giving us a potential competitive advantage in the pathway to develop low cost, profitable lithium-producing projects,” he said.
Galan was looking forward to seeing preliminary modelling results for lithium carbonate production for Candelas.
He added that, on the other hand, there is also a high level of excitement knowing what the exceptional grades from Hombre Muerto West — which has a 41% higher lithium grade than Candelas — could do for the project.
Higher grade project also in the race
Work is also proceeding on pond modelling for Hombre Muerto West and preparations have begun to test the conceptual model results at laboratory scale.
Because of its much higher grade, Galan says it may overtake Candelas as the prime development opportunity.
The company’s project area is within the lithium cluster on the Hombre Muerto salar where New York-listed Livent Corp has been producing lithium carbonate for 20 years.
South Korea’s state-owned steel giant POSCO (formerly Pohang Iron and Steel Company) and Galaxy Resources (ASX: GXY) are separately developing lithium projects there, too.
Busy month for Galan
The past month has been a busy one for Galan.
At the beginning of April directors, staff and consultants joined other investors to achieve a fully subscribed placement raising $550,000 to fund continuing work on the company’s Hombre Muerto West project.
Last week Galan scooped up more prospective ground by acquiring the Deceo III tenement for US$30,000.
The purchase covered ground next to the existing Pata Pila tenement within the Hombre Muerto West project.