Galan’s Candelas Project comprises 14 exploration permits covering over 24,000 hectares hosted within a approximately 15km by 3-4km wide structurally controlled basin. The Candelas Project is supported by a full Preliminary Economic Assessment and a JORC 2012 Resource and lies approximately 40 km ESE of the HMW Project. Candelas is located in the Puna geological province and approximately 170 km west-southwest of the city of Salta.
Candelas has no third-party royalties attached to it and has a readily accessible reverse osmosis water source, meaning that no river water will be required.
The Candelas project will be incorporated into Phase 4 of the revised 60ktpa production plan.
2021 Preliminary Economic Assessment Highlights
- Low-risk, proven process technology (similar to proximate Hombre Muerto West Project)
- Expected 14 ktpa Li2CO3 over +25 year life1
- Unlevered pre-tax NPV8% of US$1,225M
- IRR of 27.9% with 4 year payback period
- Significant potential cost synergies and value enhancements available from integrated development with HMW Project; not currently incorporated in PEA forecasts
Mineral Resource Statement for Candelas, May 20232*
(Inclusive of Ore Reserves)
Galan Lithium Total Resource Estimate, May 20232*
Notes:
1. No cut-off grade is applied to the updated Mineral Resource Estimate as minimum assays values are above expected economic concentrations (Li 620 mg/L).
2. Specific yield (SY) values used are as follows: Sand – 23.9%, Gravel – 21.7%, Breccia – 8%, Debris – 12%, Fractured Rock – 6%, and Halite – 3%.
3. The conversion for LCE = Li x 5.3228, and KCl = K x 1.907.
4. (*) The Candelas North Mineral Resource Statement was announced on 1 October 2019.
5. There may be minor discrepancies in the above table due to rounding.
