Galan Lithium has taken a vital step in establishing itself as South America’s next battery metals producer after lodging an application to establish a permanent 200-person camp at its flagship Hombre Muerto West brine project in Argentina.
The company plans to launch commercial production in 2025 and will initially use the facility to accommodate the operation’s construction workforce.
Perth-based Galan has spent the last few months ramping up hydraulic test work at its Hombre Muerto West, or “HMW” and after notching a series of development milestones, plans on moving the project closer to full-scale production with a swag of construction activity earmarked for 2023.
Recent pumping tests at the project yielded a robust flow rate of around 20 litres of concentrate per second and delivered solid grades that ran up to 927 milligrams of lithium per litre.
The tests are considered crucial elements in the commercial success of a lithium brine project and the bumper results pave the way for viable production at the site.
To drive the company’s production ambitions into reality, the operation must first have its infrastructure established and one of the first pillars of this appears to be its lodgings.
Management is looking to position the camp as an environmentally sustainable facility and says it plans on integrating solar-powered energy solutions in its design.
Galan believes HMW could offer a resource of around 2 million tonnes and has tipped the asset to punch out about 34 kilotons of lithium carbonate equivalent, or “LCE” material each year.
The project’s impressive numbers add to those derived from a preliminary economic assessment for Galan’s nearby Candelas lithium brine project.
The study for Candelas forecasts about 14,000 tonnes of battery-grade LCE production per annum during a 25 year mine life.
Galan Lithium Managing Director, Juan Pablo Vargas de la Vega said:“Our projects are located in the best salt flat in Argentina. Our human capital is strong, with significant lithium experience at all levels. Furthermore, we have the available funds to execute promptly on our new camp.”
Galan says HMW is amongst the best brine projects in the world and takes up a strong strategic position in earshot from NYSE-listed Livent Corporation’s tenement boundary.
Livent boasts over 25 years of lithium production and is one of a few battery metal players to have pegged ground within a 20km radius of HMW.
Outside of South America, Galan has its foot on a suite of hard rock lithium targets at its Greenbushes South JV project. The asset sits about 15km south of Talison Lithium’s Greenbushes mine – the world’s largest hard rock lithium operation.
Lithium has arguably been one of the decade's most in-vogue commodities and has received plenty of news flow over the past week following rumours that mining juggernaut Mineral Resources’ could be set to spin off its lithium assets.
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By Matt Birney
