Name: Sal de Vida mine.

Location: The Sal de Vida (Salt of Life) project is located in north-west Argentina in the Lithium Triangle, home to more than 60% of the world’s yearly production of lithium from brines in the Salar de Atacama and the Salar del Hombre Muerto.

Controlling Company: Galaxy Resources.

Brief History: Galaxy acquired the Sal de Vida project in July 2012 from the merger with Lithium One. At that time, the prefeasibility study had been completed. The company has since funded the completion of the definitive feasibility study, which included extensive hydrology work and modelling, drilling, pump tests, resource development, pilot plant testwork, logistics, flow sheet development and engineering, as well as market and financial modelling.

Brief Description: The Sal de Vida deposit has emerged as one of the largest and highest grade undeveloped lithium brine deposits in the world, with significant expansion potential. The deposit’s brine chemistry is highly favourable, with high levels of lithium and potash, and low levels of magnesium and sulphate impurities.

Mining Method: Conventional evaporation recovery circuit for lithium and potash.

Products: Lithium and potash.

Major Infrastructure and Equipment: The mine project will include evaporation ponds, a battery-grade lithium carbonate plant and a potash plant.

Geology/Mineralisation: The Salar del Hombre Muerto lies in the high-altitude Puna, a plateau comprising basins and ranges discrete from the much larger Cordillera-bounded Altiplano basin to the north. Outcropping basement at Farallon Catal divides the basin into Western and Eastern subbasins.

The origin of the lithium in the brines of the Puna is uncertain. An extensive magma chamber at depths of only 4 km underlies the area, which could be the ultimate source, with lithium being transported to the surface through volcanic activity, especially through hydro- thermal vents. It is not known whether the transfer was as a result of the leaching of lithium-bearing volcano clastic sediments or by the recycling of trapped lithium-bearing solutions.

The Sal de Vida brines average about 780 mg/∙ of lithium. They also have potassium concentrations, averaging about 0.87 mg/∙, low magnesium and sulphate.

In addition to the brines, the Salar hosts near-surface deposits of ulexite, a sodium-calcium borate mineral mainly used for the production of boric acid.

Reserves: Total proven and probable reserves as at April were estimated at 1.14-million tonnes of lithium carbonate equivalent and 4.2-million tonnes of potassium chloride equivalent.

Resources: Total measured, indicated and inferred resources in 2012 were estimated at 7.23-million tonnes of lithium carbonate equivalent and 28.83-million tonnes of potassium chloride.

Prospects: Sal de Vida has the potential to generate total yearly revenues of about $215-million and operating cash flow before interest and tax of $118-million a year at full production rates.

Average operating costs have been estimated at $2 200/t (net of potash credits) of battery-grade lithium carbonate.

The total capital cost for Sal de Vida is estimated at $369.2-million.

Galaxy will reserve making a final investment decision on Sal de Vida until after its Jiangsu lithium carbonate plant, in China, reaches a cash flow positive status on a sustained basis.

Contact Person: MD Iggy Tan.

Contact Details:
Galaxy Resources,
tel +61 8 9215 1700, fax +61 8 9215 1799, email ir@galaxylithium.com, and website http://www.galaxyresources.com.au.