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
Ore production is scheduled for the fourth quarter of 2022.

Latest Developments
Galaxy Resources has said that it is still on target for Stage 1 ore production in 2022 at the Sal de Vida project, despite the Covid-19 pandemic impacting on the development schedule of the project.

Galaxy suspended operations in March this year after the Argentina government issued a nationwide lockdown to contain the spread of the virus.

Site works resumed in May under strict provincial protocols, which Galaxy has said has hampered ground transportation and the movement of personnel, directly affecting the piloting schedule, progress to sample production, customer testing and offtake negotiations.

However, the company has told shareholders that the overall impact on the full project schedule has been minimised through the adoption of an early works phase.

Early works, which is expected to include the procurement of long-lead items and the start of pond construction, will occur in the second half of 2021, while other critical path activities have progressed as planned.

The company has reported that it has derisked the Sal de Vida project by developing a simplified flowsheet using mature technology and by staging the development to smooth capital expenditure and reduce market risk.

The project has now moved into the design phase, with the start of front-end engineering design (FEED) for the wellfield, brine distribution and ponds. The second FEED package for the process plant and nonprocess infrastructure is out on tender, and will be awarded in the third quarter of this year.

Galaxy is expected to spend about $12-million in the second half of 2020 on piloting, engineering, well drilling and owner costs.

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.