- Galan Lithium (GLN) has reported encouraging results from lab work on brine samples from its Hombre Muerto West (HMW) project in Argentina
- The work was first announced in August 2020 after pond modelling from the HMW project showed that concentrate with up to 4.8 per cent lithium
- However, the test results announced today “far exceeded” company expectations, according to Galan
- The company says test work showed lithium chloride concentrate at 6 per cent lithium, which is 25 per cent higher than the predicted 4.8 per cent grade
- This grade is comparable to concentrate produced by global lithium giants SQM and Albermarle from the Atacama salt-flat in Chile
- On top of this, Galan says there were low levels of impurities in the HMW brine, making it easier for the brine to be converted into a high-quality battery-grade product
- Shares in Galan Lithium are up almost 14 per cent to 54 cents each in morning trade
Galan Lithium (GLN) has completed important lab work on brine samples from its Hombre Muerto West (HMW) project in Argentina with some encouraging results.
The work was first announced in August 2020 after pond modelling from the HMW project showed that concentrate with up to 4.8 per cent lithium, or 25.6 per cent lithium carbonate equivalent, could be obtained from the project.
As such, Galan sent samples to a world-class lab in Chile to test the lithium chloride concentrate from HMW.
Today, Galan said the test results “far exceeded” company expectations, with lithium chloride concentrate at 6 per cent lithium compared to the predicted 4.8 per cent — a 25 per cent increase on predictions.
This means the HMW project has one of the highest-grade known brine concentration levels on the planet, using the evaporation process.
According to Galan, the 6 per cent lithium grade is directly comparable to concentrate produced by global lithium giants SQM and Albermarle from the Atacama salt flat in Chile.
“Grade is always king,” Galan Lithium Managing Director Juan Pablo Vargas de la Vega said.
“These results are better than we envisaged and have more than solidified the serious potential of the Hombre Muerto West project,” he said.
“We have always followed the mantra of ‘walking before running’ and these results, whilst taking time to achieve, have affirmed our step by step approach of utilising proven technology with low risk in processing.”
Further to the 6 per cent lithium grade, however, Galan management said there were low levels of impurities in the HMW lithium chlorine brine, making it easier for the brine concentrate quality to be converted into a high-quality battery-grade product.
What’s next?
Now that the potential of the HMW brine has been validated, Galan will continue to test and optimise a range of lithium chloride concentrate solutions to deliver a cost-competitive solution as quickly as possible.
Importantly, the company said it plans to start commissioning the evaporation pilot test work on-site during the June quarter of 2021.
The company also plans to start testing the conversion of high-grade lithium chloride to battery-grade lithium carbonate.
HMW is one of Galan’s core projects within the world-renowned ‘lithium triangle’ in South America. This region alone is estimated to hold over half of the world’s lithium resources.
Shares in Galan Lithium are up 13.83 per cent to 54 cents each at 11:30 am AEDT. The company has a $126 million market cap.