from the ASX...HMW’s lithium chloride (LiCl) concentrate increases significantly by 25% to 6% Li (32% LCE*)(from the original study value of 4.8% Li).
Galan’s high-grade result (6% Li) is directly comparable to SQM’s and Albemarle’s LiCl concentrate produced from the Atacama basin in Chile.
Furthermore, HMW’s LiCl concentrate level (12.9% Li20*) is equivalent to more than double the average concentrate grade of Australian lithium spodumene producers (6% Li20**).
Galan may then have the flexibility to place its lithium for downstream products anywhere in the world without the burden of high logistics costs, high CO2 footprint and/or waste management.
Evaluation of the commercial potential in the global market for its high-grade LiCl concentrate as feed for lithium battery products has commenced.
Test results showed very low level of contaminants, especially SO4, Ca and Mg.
Initial HMW brine evaporation pilot works forecast to commence in Q2 2021 (pending COVID-19 situation).
Data review enhances prospectivity at Greenbushes South Lithium Project.
Cash on hand at end of quarter was $14.9m.
HMW’s lithium chloride (LiCl)concentrate increases significantly by 25% to 6% Li (32% LCE*) (from the original study value of 4.8% Li).
Galan’s high-grade result (6%Li) is directly comparable to SQM’s and Albemarle’s LiCl concentrate produced from the Atacama basin in Chile.
Furthermore,HMW’s LiCL concentrate level (12.9% Li20*) is equivalent to more than double the average concentrate grade of Australian lithium spodumene producers (6%Li20**).
Galan may then have the flexibility to place its lithium for downstream products anywhere in the world without the burden of high logistics costs, high CO2 footprint and/or waste management.
Galan is evaluating the commercial potential in the global market for its high-grade LiCl concentrate as feed for lithium battery products.
Test results also showed very low level of contaminants, especially SO4, Ca and Mg.
Galan forecasts initial HMW brine evaporation pilot works to commence in Q2 2021.
Galan's combined total resources now ~3.0Mt Mt @ 858mg/l Li and is the 3rd largest publicly disclosed lithium resource in the Hombre Muerto basin (POSCO's $US280m transaction with Galaxy was based on a resource of 2.5Mt @ 732mg/l Li).
Final acquisition of Del Condor and Pucara concessions (not included in PEA), strengthens and consolidates Galan as key player in the region.
Compelling Preliminary Economic Assessment for 100% owned HMW Project, now a tier 1, world class lithium brine asset:
Galan acquires 80% interest in Greenbushes South Lithium Project.
$10m over-subscribed placement completed late January 2021.
Estimated cash on hand after placement of $14.6m.
Galan to acquire 80% of the Greenbushes South Lithium Project from Lithium Australia NL (ASX: LIT).
The Project is located 3 kms south of the world-class Greenbushes Lithium Mine which is owned and managed by Talison Lithium Pty Ltd.
Galan already holds a 100% interest in an Exploration Licence application (E70/4629) covering a total area of approximately 43 km2. It is approximately 15kms to the south of the Greenbushes Mine.
The acquisition secures and consolidates a significant package of exploration ground of 396km2.
Talison’s project is known as the one of the world’s largest, highest grade, hard rock spodumene deposits.
Tier 1, world class lithium brine asset now also in the first quartile of global lithium cost production curve.
Long life production (40 years+) of 20,000tpa of battery grade lithium carbonate equivalent (LCE).
Robust economic results, with unlevered pre-tax NPV of US$1,011m (8% discount rate) and lRR of 22.8% with a 4.3 year payback period.
Cash cost of production for Li2CO3 of US$3,518/t positions Galan as one of the lowest in the industry.
Initial capital cost of US$439m (US$338m without 30% contingency).
Average Iife-of-mine annual pre-tax EBITDA of US$174m (full production period).
RoskiII average real long term LCE price (2020-2040) of US$11,687/t LCE used as the basis for the economic assessment.
Scoping Study/ PEA completed with assistance of highly regarded, professional services engineering consultants.
PEA only utilises ~60% of the current HME Mineral Resource providing significant flexibility to increase future lithium carbonate production rates.
Completion of Del Condor acquisition provides potential financial upside to optimise the Project layout in next study phase, with ability to reduce Opex and Capex estimates further.
Galan overtakes POSCO as the third largest publicly disclosed lithium resource in the Hombre Muerto salt flat basin.
HMW Indicated resource massively expands by 65% with an additional 895 thousand tonnes (Kt) of contained lithium carbonate equivalent (LCE) @ 946mg/l Li (no cut off).
Substantial resource increase arises from the strategic acquisition of Del Condor concession and an SRK review of average porosity data.
Galan’s total HMW resource estimate now stands at a world class 2.3 million tonnes (Mt) LCE @ 946mg/I Li.
POSCO’s $US280m transaction with Galaxy based on a resource of 2.5Mt @ 732mg/I Li.
Galan’s combined total resources in the Hombre Muerto basin ~3.0Mt Mt @ 858mg/l Li.
PEA/scoping study remains on track for delivery in Q4 2020.
PROJECT
Completion of conceptual pond modelling at HMW Project shows its exceptional potential with concentration grade over 50% higher than Candelas (4.8% Liv 3.1% Li).
Galan’s Board and project team fully focussed on the development of the HMW Project.
PEA and scoping studies for HMW remain on track with process design and pond layout being finalised with final results expected in Q4 2020.
Company commences lab test production of battery grade lithium carbonate at world renowned Universidad Catolica del Norte in Antofagasta Chile.
Completion of right to earn a 100% interest in the Del Condor and Pucara lithium brine salar projects.
Galan’s teams in Australia and South America continue to advance its studies, in full compliance with COVID-19 restrictions.
CORPORATE
Oversubscribed $3m placement announced and completed in October 2020.
Cash on hand of 51m at end of the quarter
Galan Lithium Limited is very pleased to announce it has successfully received firm commitments for a placement of approximately 23.1 million shares (New Shares) at a price of A$O.13 per share to raise $3 million (before costs) (Placement) The placement was very well supported by domestic and international investors which resulted in bids exceeding the original placement goal by 50%.
Completion of conceptual pond modelling at HMW Project shows its exceptional potential with concentration grade over 50% higher than Candelas (4.8% Li vs 3.1% Li). Both projects show excellent capabilities, with Galan’s Board and project team now primarily focused on the development of the HMW Project. With optimised concentrated brine yielding up to 4.8% Li (25.6% LCE*), suitability for a world class lithium carbonate plant arises. Modelling results indicate that HMW may have smaller pond and processing plant footprints indicating competitive Capex and Opex. Due to the project’s high-grade/low impurity settings, Galan’s HMW project ranks very favourably amongst new lithium projects in the lithium triangle for Li recovery and pond size. Brine samples have been extracted from the HMW site and are ready to be sent to a laboratory as soon as transport permits are available. PEA and Scoping Studies for HMW remain on track with process design and pond layout set to be completed during October with final Study results expected in Q4 2020.
Total HMW resource estimate for Pata Pila/Deceo III and Rana de Sal increases 27% to 1.37Mt LCE @ 946mg/l Li (no cut off). Reclassified mineral resource statement for the HMW project area reflects the recent acquisition of Deceo III. The HMW and Candelas resource estimate re-categorised to Indicated, from Inferred, based on tighter constraints of hydrogeologic domains and further detailed quality assurance of the veracity of the exploration data. Galan’s combined total resources at Hombre Muerto basin now exceed 2Mt LCE. Successful completion of preliminary evaporation model for Candelas. Preliminary Economic Assessment of HMW tenements begins. Despite COVID-19, Galan’s team in Australia and South America continue to advance its scoping studies and PFS.
Galan Lithium Limited is pleased to announce the commencement of a Preliminary Economic Assessment (PEA) which will be undertaken by Worley Chile. The PEA will generate the development of the engineering, operating cost and capital cost estimates required for an economic scoping study assessment to produce battery and/or technical grade lithium carbonate from its Hombre Muerto West (HMW) Project located in the Salar de Hombre Muerto in Argentina.
