Galan Lithium Limited (ASX:GLN), also known as Galan, is excited to share the latest progress update regarding the construction activities at its wholly-owned Hombre Muerto West (HMW) Phase 1 lithium brine project. The company anticipates lithium chloride production to commence in the first half of 2025, marking a significant milestone in its journey towards operational success. Galan remains committed to advancing its HMW project efficiently, aiming for timely production while ensuring cost-effectiveness.

Currently, the overall completion of the HMW project stands at 33%, with notable progress achieved in the construction of the ponds system, which is now at 45% completion. Over 600,000 square meters of evaporation area have been constructed, facilitating the housing of 1,000 metric tons of lithium carbonate equivalent (LCE) contained inventory. This evaporation area is expected to support the production of approximately 2.4 kilotons per annum (ktpa) of LCE in lithium chloride volume. Key processing parameters such as raw brine well average flow rates, lithium grades, and evaporation rates align closely with the Phase 1 Definitive Feasibility Study (DFS). Based on the current construction pace and achieved results, the HMW project remains on schedule for production commencement in the first half of 2025.

Furthermore, Galan's team is actively exploring options to optimize capital expenditure by identifying opportunities to minimize infrastructure requirements for Phase 1 production. Various trade-off exercises are being evaluated, including the analysis of rental options for energy supply, reduction of building sizes, and the utilization of smaller independent control systems instead of a larger central control system for all facilities.

The HMW project is divided into four production phases, with the initial Phase 1 DFS focused on achieving lithium chloride concentrate production of 5.4 ktpa LCE by the first half of 2025, in compliance with approved production permits. Subsequent phases include Phase 2 targeting 21 ktpa LCE in 2026, Phase 3 aiming for 40 ktpa LCE by 2028, and Phase 4 setting a production target of 60 ktpa LCE by 2030. Phase 4 will integrate lithium brine sourced from both HMW and Galan's wholly-owned project in Argentina, Candelas. Positive Phase 2 DFS results were previously announced on October 3, 2023.

Juan Pablo (JP) Vargas de la Vega, Galan's Managing Director, expressed his satisfaction, stating, "We are pleased with the substantial progress made by the HMW Phase 1 construction team. With over one-third of the project completion achieved, Galan is steadily advancing towards our targeted production commencement in the first half of 2025. We extend our sincere appreciation to the Government of the Catamarca Province in Argentina for their consistent support, exemplified by the recent agreement to commercialize lithium chloride concentrate from HMW. We are enthusiastic about the opportunities this agreement brings for Galan's future."