Galan Lithium is on track to install the first pond of its Hombre Muerto West lithium brine project in Argentina before the end of the year, with 85 per cent of the construction process now complete.
The company has today confirmed the initial filling of the pond is expected by the first quarter of next year, with the evaporation process on schedule to begin this summer. The construction of a second pond is scheduled to will kick off before the end of next week.
An on-site laboratory has been commissioned in preparation for ongoing lithium assaying, while a liner crew is ready to mobilise at the operation once the construction process is finished. Management says the project remains on track for maiden production in the first half of 2025.
Earlier this year, Galan secured a binding offtake agreement with mining giant Glencore for the supply of up to 100 per cent of lithium products from phase-one production at Hombre Muerto West.
In return, Glencore has offered to provide a secured financing prepayment facility for US$70 million (AU$107 million) up to US$100 million (AU$154 million), subject to conditions. The agreement is for a five-year period from the start of the first-phase commercial production, which is estimated at 5400 tonnes of lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum.
The two companies have already agreed that Glencore will have first right to negotiate the marketing or financing for phase-two of the project, which has been shown to significantly enhance the operation. Management says the offtake agreement does not require Galan to secure an export licence for its lithium chloride and Glencore will accept the product to be toll-treated into LCE for sale and export from Argentina.
Glencore is currently conducting its due diligence requirements at the operation which hosts a mineral resource estimate of 6.6 million tonnes of LCE averaging 880 milligrams per litre lithium.
Galan Lithium managing director Juan Pablo Vargas de la Vega said: “Galan’s experienced and competent construction team are entirely focused on delivering the first HMW production phase in H1, 2025 and remain enthusiastic and confident in doing so. The Pond 1 liner team is ready to mobilise with an expected commencement installation date in late December 2023 plus our onsite laboratory has just been commissioned for continual on-site Li assaying as we move forward.”
Proposed production at the project has been separated into four specific phases, starting with the 5400 tonnes per annum of LCE. Phase-two production is targeting 21,000 tonnes a year in 2026, before a significant increase during the third phase to 40,000 tonnes per year by 2028.
The final stage is predicted to produce 60,000 tonnes per annum using lithium brine sourced from both Hombre Muerto West and Galan’s other Argentinian brine project in Candelas.
Recent testing from the Hombre Muerto West pilot plant achieved the production of a 6 per cent lithium chloride concentrate product, equivalent to 13 per cent lithium oxide or 31.9 per cent LCE, with low levels of impurities.
With construction activities at the site progressing on time and a big name miner on board in Glencore, Galan could be set to establish itself as a genuine player in the lithium brine field in the near future.
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By Michael Philipps
