QUARTERLY HIGHLIGHTS COVID-19 COVID-19 health and safety practices implemented organisation wide without incident Sal de Vida’s development schedule has been impacted but Stage One production in 2022 remains the target Mt Cattlin operations continued without major disruption and James Bay’s site based geotechnical program rescheduled for Q3 PROJECT DEVELOPMENT Sal de Vida, Argentina Front-end engineering design of the wellfield and ponds is underway and the process plant package is out for tender Process test work is yielding high quality primary lithium carbonate with grade at the upper end of expectations Pilot plant commissioned and first piloting run was successfully completed post-quarter, with the second run scheduled in August Evaporation of brine in the pilot ponds is performing in line with process and atmospheric models Permitting is progressing with the granting of operational permits for the extraction of fresh water and use of reagents Galaxy remains in a strong position to execute its growth strategy countercyclically and meet the forecast lithium demand surge PRODUCTION & OPERATIONS Mt Cattlin, Australia Operational performance under the new campaign mode of operations improved throughout the quarter Production volume of 30,942 dry metric tonnes (“dmt”) achieved at a grade of 5.93% Li2O, in line with annual guidance Ore sorter circuit approaching nameplate performance at 1,000 t/ day of stockpiled, low grade ore processed through the plant 26,030 dmt of spodumene concentrate was shipped in June, bringing total H1 shipments to 58,542 dmt Post-quarter, a multi-year offtake extension was executed with a long-term major customer FEASIBILTY James Bay, Canada Value engineering work completed with results showing reduced capital intensity and operating costs FINANCIAL & CORPORATE As at 30 June 2020, Galaxy was debt free with cash and financial assets of US$108.6 million Proceeds from the June shipment were received post quarter and final product inventory of 49,463 dmt was held at quarter end Cost reduction initiatives yielded annual group savings of ~US$7 million
Also
Traka has secured rights to the advanced Mt Cattlin Gold Project by agreeing with Galaxy Resources Limited (Galaxy) to exchange Traka’s Free Carried 20% interest in the Mt Cattlin North Tenements for 100% of the gold and other mineral potential (excluding pegmatite minerals) on the tenement area. Prior to the focus on lithium and other pegmatite minerals the Mt Cattlin North Tenements had a long history of gold mining and exploration. After decades of inactivity this now represents an excellent advanced gold project. What was originally turn-of-thecentury prospector-scale activity on 18 separate mines (Reported production of 23,006 tonnes @ 24.56 g/t Au (1)) has, with modern day exploration and improved gold prices, become a rare opportunity for substantial up-scale. There are kilometre-long mineralised shear zones and quartz-veined intrusives with high grade gold shoots and numerous drillhole intersections that present targets for immediate follow-up (Figure 1). Traka acquired the tenements and recommenced exploration for gold in 2004(2) after years of inactivity following work by Metana Minerals NL and a few other parties in the 1980s and 1990s. Traka confirmed the excellent scope of the project, but a gold price in the low US$400s made this project a marginal opportunity at the time. With the gold price now much higher the opportunity is substantially improved.
GXY Price at posting:
99.5¢ Sentiment: Buy Disclosure: Held
