Galan Lithium Limited (ASX: GLN), an Australian company with two lithium operations in Argentina, provided an additional update on the progress of construction activities at its Hombre Muerto Oeste (HMW) project. The first phase of the project aims to commence lithium chloride production in the first half of 2025.
By Panorama Minero
As reported by Panorama Minero, the company highlighted that earthmoving works for the first evaporation pond are nearly complete, marking a significant milestone in the construction phase. Additionally, the lining installation for the pond has commenced, achieving a 5% progress. The filling of the pond is expected to occur in the first quarter of 2024, with the evaporation process set to commence this summer, marking a crucial step in the long-term production schedule.
Simultaneously, construction works for the second pond are underway, reaching a 10% completion rate. In total, 9 production wells have been constructed to date, surpassing the phase 1 requirement of 6 wells. The company noted, "This solid progress underscores the operational efficiency of the HMW project”.
The HMW project is categorized as a top-tier project that will yield high-quality lithium chloride concentrate with a 6% lithium content, equivalent to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE) in the first half of 2025. Galan emphasized that with low sustainable costs, HMW positions itself in the first quartile of the lithium industry cost curve, supported by an initial reserve estimate for a 40-year period.
An updated resource estimate is expected in the first quarter of 2025, further reinforcing Galan's position in the lithium market. Additionally, as part of due diligence, a site visit by Glencore is being planned, highlighting the interest and confidence in the project.
Following the announcement, Galan's CEO, Juan Pablo Vargas de la Vega, stated, "The initiation of lining installation for Pond #1 is another achievement for the construction team in the first phase of HMW. The team continues to make progress on all fronts, seeking to validate Galan's low-cost, low-risk lithium chloride development strategy to become the next lithium producer in Argentina in the first half of 2025”.
Lithium: Galan streamlines timelines and achieves nine evaporation ponds on site
