Beefed up Galan Lithium back in action with drilling to start at Hombre Muerto West
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Galan Lithium is back in the saddle at its Hombre Muerto West lithium brine project in Argentina with its next round of drilling approved.
Galan (ASX:GLN) has new drilling permits in place for the Hombre Muerto salar, where the lithium explorer is aiming to convert some of its high grade resource into a maiden reserve.
Preparatory works have begun within its Pata Pila and Rana de Sal concessions, and Galan has already mobilised its drilling equipment to the site, where it plans to expand resources, test flow rates and establish a lithium grade for the reserve.
Galan is working through a definitive feasibility study at Hombre Muerto West, which sits adjacent to ground held by one of the world’s biggest lithium producers Livent, having raised $50 million in an institutional placement just last week.
“We are pleased to be able to return to HMW, this time to drill for Reserves,” Galan MD JP Vargas de la Vega said.
“With our new funding, Galan will also test new undrilled areas aiming to firm-up and increase resources.
“We want to prove that HMW could have a productive well field to support potential production as part of the DFS.”
Its Tier-1 low impurity brine resource at HMW contains 2.3Mt of lithium carbonate equivalent at a grade of 946mg/l Li.
On its release in December last year the updated resource became the third largest disclosed resource in the rich Hombre Muerto basin.
According to a preliminary economic assessment released last year, HMW could produce 20,000tpa of battery grade lithium carbonate equivalent at sector leading costs of US$3518/t.
At the time, Galan said they would be among the lowest costs in the lithium industry.
This article was developed in collaboration with Galan Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.