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

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

Project Owner/s
Galan Lithium.

Project Description
A definitive feasibility study (DFS) been separated into two phases.

Phase 1 focuses on the production of a lithium chloride concentrate as governed by the production permits. The DFS optimisation work continues and will culminate in the release of a Phase 2 DFS, addressing a full 20 000 t/y lithium carbonate equivalent production rate over a mine life of 40 years.

The Phase 1 DFS has delivered compelling economics from an initial 5 367 t/y lithium carbonate equivalent operation, targeting a high-quality, 6% concentrated lithium chloride product (equivalent to 12.9% lithium oxide, or 31.9% lithium carbonate equivalent).

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
$104-million, before contingency.

Planned Start/End Date
Phase 1 is expected to enter production in the first half of 2025, and Phase 2 in 2026.

Latest Developments
Construction has started at HMW lithium brine project in Argentina.

The company has said that this is a significant step towards achieving the planned production capacity of 5 400 t/y of lithium carbonate equivalent by the first half of 2025.

The first fleet of earthmoving equipment has been mobilised and is actively working on site. Additional equipment is scheduled to arrive shortly, further enhancing the construction process. Alongside the pond construction, other essential infrastructure upgrades, including improvements to the camp, diesel storage, water supply and other site services, are in progress.

A pivotal milestone is the construction, lining and filling of the first evaporation pond by the first quarter of 2024. With an expansive evaporation area of 205 000 m2, its completion is crucial for initiating the evaporation path to production during the optimal summer months.

The current Phase 1 focuses on producing a lithium chloride concentrate, in line with the recently approved production permits. The culmination of this phase will lead to the release of a Phase 2 definitive feasibility study in September 2023.

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 costs 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.