Milestone for Galan Lithium as development works begin at Argentine mine site
Phase 1 development has begun at the Hombre Muerto West project in Argentina just two weeks after Galan Lithium (ASX: GLN) received the last of its required permits from the Catamarca provincial government.
The first part of the fleet is now on site with more equipment to arrive next week.
Hombre Muerto West is the company’s flagship project, located in the prolific “lithium triangle” spanning areas of Argentina, Bolivia and Chile.
Galan describes Hombre Muerto West as the highest grade lithium project in Argentina, the resource now standing at 6.6 million tonnes at 880 milligrams lithium per litre.
‘More real than ever’
Galan’s Managing Director, Juan Pablo Vargas de la Vega, said this is the beginning of the company’s construction journey to production.
“We have come a long way since our early days, considering Galan obtained the original Hombre Muerto assets only just over five years ago, and with all the delays experienced during Covid-19,” he added.
“This feels more real than ever for everyone at Galan.”
First production by 2025
Galan is aiming to be a lithium producer in the first half of 2025.
At the completion of Phase 1 development, the company is targeting a premium concentrate of six per cent lithium with annual output of 5,400 tonnes of lithium carbonate.
Meanwhile, third party offtake and “other strategic discussions” are ongoing, the company notes.
First evaporation pond due early 2024
The first batch of earthmoving equipment is already on site for the construction of the evaporation ponds.
Galan says the delivery of the first ready evaporation pond is expected in the first quarter of 2024 which will allow a “favourable” evaporation path toward production during Argentina’s summer months.
This first pond will cover an area of 250,000 square metres.
“Its completion is a major objective triggering the start of the evaporation path to production at the most favourable time,” the company stated.
Hombre Muerto West covers 16km by 1.5km on the west coast of the Hombre Muerto salar and is at present comprised of seven mining concessions held by Galan.