https://www.miningweekly.com

Sal de Vida DFS confirms project potential - Galaxy

12th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into lithium miner Galaxy Resources’ Sal de Vida project, in Argentina, has confirmed the potential for a low-cost, long-life mine.

Galaxy reported on Friday that the project would require a capital investment of some $369.2-million, to support yearly production of 25 000 t/y of battery-grade lithium carbonate and 95 000 t/y of potash, over a 40-year mine life.

“The DFS confirms Sal de Vida has excellent promise as a future low-cost brine mine and lithium carbonate and potash processing facility. We have the potential to add reserves and mine life to this project and maintain belief it will become our flagship asset,” said Galaxy MD Iggy Tan.

He added that the results of the DFS vindicated Galaxy’s decision to merge with Lithium One last year, in order to gain access to the Sal de Vida asset.

The DFS has indicated that the Sal de Vida project has a net present value of some $645-million, and has the potential to generate total yearly revenue of around $215-million, with an operating cash flow before interest and tax of $118-million a year, at full production rates.

Galaxy’s joint venture partners, Korea Resources, LG International and GS Caltex, collectively referred to as the Korea Cornsortium, funded some $15-million towards the prefeasibility study of the Sal de Vida project, with a farm-in agreement to earn a 30% interest in the project.

The Korean Consortium has earned a 4% interest in the project to date, and has 90 days from the completion of the DFS to exercise its option to earn the full 30% interest.

If the option is exercised, the Korea Consortium would provide a project completion guarantee for Galaxy’s portion of the project debt financing until completion, and would use commercially best efforts to obtain project finance.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

EKATO Africa
EKATO Africa

Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.052 0.825s - 128pq - 2rq
Subscribe Now