Name of the Project
Sal de Vida lithium/potash project.

Location
The project is located on the Salar del Hombre Muerto, in north-west Argentina.

Project Owner/s
Galaxy Resources.

Project Description
An updated definitive feasibility study (DFS) has validated Sal de Vida as a technically superior, highly profitable long-life and low-cost lithium/potash project.

Sal de Vida plans to produce battery-grade lithium carbonate and potash products through the treatment of lithium-enriched brine from the Salar de Hombre Muerto.

The project has a Joint Ore Reserves Committee-compliant mineral reserve of 1.1-million tonnes of recoverable lithium carbonate equivalent and 4.2-million tonnes potassium chloride equivalent, supporting a long initial project life with production of 25 000 t/y of lithium carbonate and 94 000 t/y of potash.

The project has an estimated mine life of 40 years.

The project also holds significant potential for future upside from further resource definition and subsequent reserve upgrade.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated post-tax net present value, at an 8% (real) discount rate, of $1.48-billion and an internal rate of return of 26.9%, with a post-tax payback of about three years from first production.

Capital Expenditure
Capital expenditure is estimated at $474-million, or $443-million when the potash circuit is excluded.

Planned Start/End Date
The DFS models an operation with an initial three-year ramp-up to full planned lithium carbonate production. Potash production is deferred for two years after the start of lithium carbonate production.

Latest Developments
Galaxy Resources is targeting a final investment decision at the Sal de Vida project by the second or third quarter of 2020.

A simplified flowsheet has been developed for project, resulting in fewer process steps, a reduction in pond sizing and an accelerated initial evaporation period.

Lithium recovery has also improved owing to lower pond losses. Independent testwork has demonstrated that Galaxy’s product purifies to battery-grade simply and cost effectively.

The revised flowsheet has also decoupled the on-site operation from the purification process, meaning that the purification activities can take place off site and at lower altitude, making operating conditions easier to control.

Further, Galaxy has said that it will also derisk the development of Sal de Vida by staging the project execution into two or three modules, allowing for the staging of capital expenditure, simpler management of construction logistics and a reduction of development risk.

The staged development also means that Galaxy could fund the first stage from its balance sheet after a partial equity sell down of the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Galaxy Resources, tel +61 8 9215 1700, fax +61 8 9215 1799, or email reception@galaxylithium.com or info@galaxylithium.com.