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Galaxy Resources (ASX:GXY) - A Galaxy Resources employee at Mt Cattlin. - The Market Herald
A Galaxy Resources employee at Mt Cattlin.
Source: Galaxy Resources
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  • Galaxy Resources (GXY) has updated the market on its Mt Cattlin Lithium Project in WA, which it says continues to operate at full rate
  • The project has so far produced 40,261 dry metric tonnes (dmt) of spodumene concentrate in the second quarter to the end of May
  • GXY is finalising a 15,000-tonne shipment for June with pricing expected in excess of US$750 (roughly A$968) per metric tonne for cost, insurance and freight for six per cent Li2O
  • Meanwhile, GXY has accelerated the mine plan at its 2NW deposit to bring the first pre-strip phase forward to the second half of 2021
  • Following drilling at 2NW in Q1, Galaxy has updated Mt Cattlin's mineral resource and ore reserve estimates
  • Galaxy Resources shares are trading in the grey at $3.97 each

Galaxy Resources (GXY) has updated the market on its Mt Cattlin Lithium Project in Western Australia, which it says continues to operate at full rate.

The project has so far produced 40,261 dry metric tonnes (dmt) of spodumene concentrate in the second quarter to the end of May.

The product has recorded a grade of 5.77 per cent lithium-oxide (Li2O), which GXY says aligns with its customers' requirements.

In light of the sustained high production rate, full year guidance for Mt Cattlin has reportedly increased from 185,000-200,000 to 195,000-210,000 dmt.

Accordingly, Galaxy says demand for its spodumene concentrate remains strong, with a 15,000-tonne shipment already secured for June, following a 33,500-tonne shipment that sailed in May.

The company is now finalising the first shipment for the third quarter, with pricing expected in excess of US$750 (roughly A$968) per metric tonne for cost, insurance and freight for six per cent Li2O.

GXY anticipates sales volumes in line with production.

2NW mine plan

Meanwhile, Galaxy has accelerated the mine plan at its 2NW deposit to bring the first pre-strip phase forward to the second half of 2021.

Since its 2018 mineral resource estimate, the company has undertaken 5912 metres of reverse circulation drilling and 274 metres of HQ diamond drilling at the site.

Best results from the campaign include seven metres at 2.03 per cent LiO2 from 111-118 metres and show the variability of thickness, which is also present in other parts of the orebody.

Additionally, six geotechnical drill holes were also completed with a geotechnical pit optimisation study ongoing.

Mineral resource estimate

As a result of the above drilling information and depletion in the first quarter of the year, Galaxy has updated the mineral resource and ore reserve for Mt Cattlin.

Accordingly, the deposit's mineral resource estimate now stands at 11 metric tonnes at 1.2 per cent Li2O and 151 parts per million (ppm) tantalum pentoxide (Ta2O5).

Further, its ore reserve estimate comes to eight metric tonnes at 1.04 per cent Li2O and 139 ppm TaO5.

GXY recently completed an updated technical report for Mt Cattlin, which, together with project updates for James Bay and Sal de Vida, it will include in a scheme booklet scheduled for release in early July.

On the market this morning, Galaxy Resources shares trading in the grey at $3.97 at 11:20 am AEST.

GXY by the numbers
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