Name of the Project
Hombre Muerto West (HMW) lithium project.

Location
South American lithium triangle, which spans the borders of Argentina, Bolivia and Chile.

Project Owner/s
ASX-listed Galan Lithium.

Project Description
The HMW project is separated into four production phases. 

The initial Phase 1 definitive feasibility study (DFS) focused on the production of 5 400 t/y of lithium carbonate equivalent (LCE). In September 2024, Galan MD JP Vargas de la Vega indicated that the company had adopted a lower capital intensity Phase 1 development to an initial 4 000 t/y LCE rate in light of market conditions.

The Phase 2 DFS targets 21 000 t/y lithium carbonate equivalent in 2026, followed by Phase 3 production of 40 000 t/y lithium carbonate equivalent by 2028 and the Phase 4 production target of 60 000 t/y lithium carbonate equivalent by 2030. 

Phase 4 will include lithium brine sourced from HMW, and Candelas – Galan’s other 100%-owned project, in Argentina.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Phase 1 delivers an after-tax net present value, at an 8% discount rate, of $460-million and an internal rate of return of 36%, with a payback of two years from the start of construction.

Capital Expenditure
The Phase 1 project is estimated at $104-million, in addition to the $278-million contemplated in the Phase 2 study, with the total Phase 1 and Phase 2 capital cost estimated at $382-million.

Planned Start/End Date
Phase 1 output is scheduled for the first half of 2026.

Latest Developments
Galan Lithium announced on August 25 that a A$20-million placement with Clean Elements Fund would proceed after the investor had completed due diligence on the project.

The settlement would be made in two tranches of A$10-million, with the first due within five business days and the second no later than November 22, the company said in a statement.

Proceeds will fund the completion of Phase 1 construction at HMW.

Key Contracts, Suppliers and Consultants
Ad-Infinitum (feasibility study work and lithium recovery method); SRK Consulting (mineral resources and reserve estimates); AIA Engineering, Consulting Services International and EIC Engineering (pond designs and water contour channels); M3 Engineering and Technology Corporation (reviewing and documenting the recovery method and the civil material takeoff quantities for ponds and water contour channels, developing the engineering design of the reagents and filtering plant); M3 (project layout, infrastructure designs, capital cost and operating-cost estimates and economic evaluation); and Wood Mackenzie and iLiMarkets (price estimates of the lithium carbonate and lithium chloride concentrate).

Contact Details for Project Information
Galan Lithium, tel +61 8 9322 6283 or email admin@galanlithium.com.au.