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Galan Lithium reports robust PEA results for its Candelas project in Argentina, with NPV of $1.23 billion

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(Kitco News) - Galan Lithium (ASX: GLN) yesterday reported positive results of the Preliminary Economic Assessment (PEA) for its 100% owned Candelas project in Catamarca Province, Argentina.

The company said that the project's PEA delivered robust economic results, with unleveraged pre-tax NPV of US$1,225 million (8% discount rate) and IRR of 27.9% with a four year payback period.

According to the company's statement, the project has a long life of 25 years, and competitive cash production cost for Li2CO3 of US$4,277/t, positioning the Candelas project as a low-cost developer in the lithium industry.

The study estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate product including some technical grade product for the first three years.

The process defined and designed for the Candelas project is based on conventional evaporation ponds as preconcentration and purification and a lithium carbonate plant.

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The company said that the PEA process has provided significant economic outcomes for the Candelas project which Galan believes can be optimized and enhanced further to refine the project's obvious potential.

Managing Director Juan Pablo Vargas de la Vega commented, "We are delighted by the strong and competitive results of the Candelas project PEA. Our projects continue to show healthy economics and upside despite using a conservative long term price assumption at a time when new lithium projects are scarce. Galan now has two potential production fronts combining for a long-term production rate of 34ktpa of LCE. This rate could be even higher once we finish drilling at our flagship HMW project."

Galan Lithium is an Australian based international mining development company whose main focus is its lithium brine projects located in the Hombre Muerto Basin in Argentina, which is one of the most important and prolific salt flats in Argentina and in the the world. The basin is known to have the lowest impurity levels of any producing Salar in Argentina and has been in production for over 20 years.

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