15/04/2021 - 08:00

Galaxy outlines Sal de Vida plans

15/04/2021 - 08:00

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Shares in Galaxy Resources closed up by more than 8 per cent on Wednesday when the company released an updated development plan for its Sal de Vida lithium project in Argentina.

Galaxy is targeting first production for Sal de Vida in late 2022. Photo: Galaxy Resources

Shares in Galaxy Resources closed up by more than 8 per cent on Wednesday when the company released an updated development plan for its Sal de Vida lithium project in Argentina.

Galaxy, which operates the Mt Cattlin mine in Western Australia, expects mining at Sal de Vida to add about 32,000 tonnes of spodumene (lithium) concentrate to the company’s overall annual production, according to an updated feasibility study.

It follows a $161 million capital raising in November, which Galaxy had said would go towards initial development of the three-staged Sal de Vida project.

Stage one has an initial production capacity of 10,700tpa, with 80 per cent battery quality.

Galaxy has updated the project’s brine reserve to 1.3 million tonnes of lithium carbonate equivalent, which will support a 44-year project life.

Development costs are estimated to be $US153 million (about $A198 million).

The project has a pre-tax net present value of $US809 million ($A1.05 billion) at an 8 per cent discount rate and pre-tax internal rate of return of 43 per cent.

Chief executive Simon Hay on Wednesday said the technical and financial outcomes of the updated feasibility study were very positive.

He said the staged development de-risked the project but warned COVID-19 presented “significant challenges” and remained a risk to the Sal de Vida schedule.

Galaxy will now progress detailed engineering ahead of the main construction works, with first ore production targeted for late 2022.

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