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 of 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 has suspended operations at its Sal de Vida project, after government issued a nationwide lockdown to contain the spread of Covid-19.

The majority of the project workforce is demobilising from site, with only a skeleton crew to remain for essential services.

The company has told shareholders that the restrictions will inevitably slow down on-site activities, however, off-site engineering design work will continue unaffected. To date, the pilot programme has advanced to pond lining completion and plant commissioning.

Key Contracts and Suppliers
None 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.