News: GXY Project NPV US$1.043 billion at 10% discount rate

The Sal de Vida (Salt of Life) deposit is one of the world’s largest and highest quality undeveloped lithium brine deposits with significant expansion potential. In August 2016, Galaxy released an updated Feasibility Study Report (FSR), completed on schedule and within budget, which supports low cost, long life lithium and potash operation.

The FSR estimated a post-tax net present value of US$1.043 billion at 10% discount rate. Sal de Vida has the potential to generate total annual revenues in the region of US$354 million and operating cash flow before interest and tax of US$273 million per annum at full production rates.

Galaxy has also considered low cost, scalable development options at Sal de Vida. All development options consider modular designs, providing the flexibility to add units and scale up to the capacity of 25,000 tonnes per year of lithium carbonate and 95,000 tonnes of potassium chloride.

A maiden JORC-compliant Reserve estimate of 1.1 million tonnes of retrievable lithium carbonate equivalent and 4.2 million tonnes of potassium chloride (potash or KCI) equivalent supports total annual production over a 40 year period.

The FSR supports the development of Sal de Vida, which when completed, will include evaporation ponds, a battery grade lithium carbonate plant and a potash plant.

The Sal de Vida Project is located in north-west Argentina in what is known as the ‘Lithium Triangle’, home to more than 60 percent of the world’s annual production of lithium from brines in the Salar de Atacama and the Salar del Hombre Muerto. The Salar lies approximately 1,400 kilometres north-west of Buenos Aires at an altitude of 4,025 metres. The property is accessible from the city of Salta via an all-seasons road, and there is a major powerline 115 kilometres away.

Total tonnages for the economic reserve values provided in Table 2 account for anticipated leakage and process losses of lithium and potassium. Table 2 gives results of the Proven and Probable Reserves from the Southwest and East well fields when these percent estimated processing losses are factored in, assuming a continuous average brine extraction rate of 30,000 m3/d.

Table 2: Probable and Proven Reserve Statement April 2013

	Reserve Category	Time Period (Years)	Tonnes Li Total Mass	Tonnes Equivalent Li2CO3	Tonnes K Total Mass	Tonnes Equivalent KCl
1	Proven	1 - 6	34,000	181,000	322,000	633,000
2	Probable	7 - 40	180,000	985,000	1,869,000	3,564,000
3	Total	40 years total	214,000	1,139,000	2,201,000	4,197,000

Note: Assumes 500 mg/L Li cut off

http://www.gxy.com/projects/sal-de-vida