Galan Lithium (ASX:GLN) has kicked off foundation works for the Hombre Muerto West (HMW) project feasibility study, aimed at “getting HMW online as soon as possible”.

Getting resources out of the ground requires a lot of money, and investors won’t risk their capital on projects without a reasonable prospect of success. One way of determining this is through feasibility studies.

There are four stages, each with more certainty attached to them. The more advanced feasibility study – which Galan is prepping right now — tells investors that the project is financially and technically robust.

The Hombre Muerto West (HMW) project in Argentina — a high grade lithium resource ~7.5km long, up to ~2.5km wide and 718m deep – is a certified industry leader.

Galan recently appointed WSP Consulting Chile (WSP) to provide support and design work — including production wells — for different aspects related to the hydrogeology of the HMW tenements.

SRK, with WSP, will review the current resource estimate and then undertake all-important reserve conversion work.

Drilling at HMW will kick off as soon after the design and location of the well is confirmed.

Other early works items have also started, or are due to start, including:

  • Aerial survey to supply the high quality topography data
  • Design of the mass balance for the brine concentrate with 6% lithium, plus design of the pilot plant
  • Process design and mass balance of lithium plant for 6% lithium (but also considering a lower lithium content for selecting the optimum lithium plant design)
  • Upgrade the design of the pond system for up to 25,000tpa of LCE with potential production in two stages

Ad-Infinitum have been engaged to create the design of the pilot plant, while a specialised topography and ponds design consultant will prepare a revised design of the evaporation ponds system.

In parallel, discussions with engineering firms for the resolution of the final engineering assignment of the feasibility study have been conducted and are well advanced.

Greenbushes South Joint venture

Work at the Greenbushes South JV with Lithium Australia (ASX:LIT) has also kicked off.

In January 2021, Galan inked a deal with Lithium Australia for an 80% interest in the ‘Greenbushes South’ project, located next door to the world largest hard rock lithium mine, Greenbushes.

Despite its location — covering the southern strike projection of the geological structure that hosts Greenbushes, ~3km south of the existing open pit — there are no available drilling results for lithium or lithium pathfinders, Galan says.

The Galan team has been granted initial private access to parts of the relevant geological areas of interest to proceed with field work that includes soil and rock chip sampling as well as mapping.

Desktop geological work is also planned in the near future on the recently granted E70/4777 tenement ~25km north of the Greenbushes mine.

Another JV tenement, E70/5680, was also recently granted.




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.