Galan Lithium (ASX: GLN) confirmed that its property in the Hombre Muerto West project in Argentina has surpassed the 1,000-ton mark for contained lithium carbonate equivalent (LCE) inventory from its evaporation ponds.
The company said on Monday that the overall project completion remains at 33 per cent and the pond evaporation system specifically sits at 45 per cent complete. Approximately 600,000 square metres of evaporation area have been constructed to house the LCE-contained inventory, reportedly sufficient to produce around 2,400 tonnes per annum of lithium chloride.
Key processing parameters, such as average flow rates from raw brine wells, lithium grades, and evaporation rates, align with the Phase 1 definitive feasibility study, and capital expenditure constitutes 33 per cent of the Phase 1 budget. Based on the construction pace and results achieved so far, the company stated that the Hombre Muerto West project remains on schedule to begin production in the first half of next year.
“With more than one third of the project completion now achieved, we are well on the way towards our targeted start of production next year,” said Juan Pablo Vargas de la Vega, Galan’s managing director.
Vargas de la Vega said that Galan’s engineering and procurement teams are actively working to identify opportunities to reduce capital and operating expenditures during Phase 1 of the project. The company’s ideas center on selecting the minimum infrastructure necessary to start production and include considering rental options for energy supply.
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The salar is a hotbed of lithium mining
The Hombre Muerto West property is a lithium brine project in the Catamarca province of Argentina. It’s located in the Puna plateau region of the Andes at a lofty 4,000 meters above sea level. The project holds a significant lithium resource extracted from brine deposits. The Catamarca brine project comprises 21 mining tenements.
The salar is a hotbed of lithium mining activity due to the high quality lithium extraction happening throughout the salar. The project contains an estimated 6.6 million tonnes of lithium carbonate equivalent, with its indicated resources averaging a grade of 904 milligrams per litre.
Meanwhile, to the north, Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is developing the Salar de Hombre Muerto North in conjunction with South Korean company POSCO Holdings (KRX: 005490). Lithium South recently announced the installation of an additional 400-metre-deep well at the largest claim block of its Hombre Muerto North operation, Alba Sabrina.
Furthermore, Arcadium Lithium plc (NYSE: ALTM) (ASX: LTM) operates the Fenix lithium mine and the Sal de Vida lithium brine project located in the Salar del Hombre Muerto. However, the Supreme Court of Catamarca has halted the construction of two major Arcadium Lithium projects following an injunction from an indigenous community.
This legal action requires a stop to the issuance of permits for the expansion of the Fenix project and the development of the Sal de Vida project. Both projects, situated in the Antofagasta de la Sierra department, will remain on hold until the completion of a comprehensive environmental impact study.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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