Lithium

Galan Lithium making strong progress at HMW, new exploration upside identified

Thu 31 Mar 22, 12:35pm (AEST)
Lithium 12 Brine
Source: iStock

Stocks in article

gln
MktCap:
-

Share article

Key Points

  • Galan's Hombre Muerto West Project's Definitive Feasibility Study is on-track for year-end completion
  • Lithium brines have successfully been pumped at two boreholes
  • An initial evaporation pond has been built with brine filling "imminent"

Galan Lithium (ASX: GLN) is confident that the company will deliver a Definitive Feasibility Study (DFS) for the Hombre Muerto West Lithium Project in Argentina by year-end.

Managing Director and CEO Vargas de la Vega said the company was “progressing strongly, on all fronts,” after spending the past few months on the ground in Argentina and Chile.

“My meetings with local Catamarca authorities saw evidence of excellent governmental and community support for the HMW and Candelas Projects,” said Vega.

Galan lithium is currently forecast to commence construction at Hombre Muerto West  (HMW) in the fourth quarter of 2022, subject to the approval of the exploitation permit and successful completion of financing activities.

Construction and commissioning is expected to take two years.

Hombre Muerto West updates 

Galan has completed the drilling and short-term testing of two pumping borehole wells. For context, HMW is a brine project which pumps lithium rich brines from underground. 

The company said that long-term hydraulic pumping tests are set to commence in May.

Brines are pumped into a series of evaporation ponds to crystalise other salts, leaving a lithium-rich substance. Galan has completed the construction of the initial evaporation pond, which covers approximately 3,000 m2.

The ponds will soon be filled with brine as part of initial evaporation testing activities.

HMW Project Update - Strong Progress, New Targets Identified
Source: Galan Lithium

Exploration upside

Vega explained that HMW has "further potential Mineral Resource upside, evidenced by the recent TEM geographical survey."

"We look forward to aggressively drilling these new target zones from next quarter and through the rest of 2022.”

Galan Lithium Ltd (ASX GLN) Share Price - Market Index
Galan Lithium 12-month price chart

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

Get the latest news and media direct to your inbox

Sign up FREE