The Galaxy Resources Ltd (ASX: GXY) share price is one to watch in early trade after an update on its Sal de Vida lithium project in Argentina.
Why is the Galaxy Resources share price on watch?
Galaxy Resources today reported an increase in resources and reserves at the Sal de Vida site in Catamarca, Argentina. That comes on the back of assessing hydrogeological data from the drilling of two production wells at the site.
The revised Brine Resources has increased 27% from prior estimates to 6.2 million tonnes of lithium carbonate equivalent (LCE). Galaxy also reported a 13 per cent increase in reserves estimates to 1.3 million tonnes of recoverable LCE.
The Galaxy Resources share price is one to watch in early trade on the back of the update. As well as the upgraded resource and reserves, Galaxy provided a Sal de Vida development plan. That follows the completion of the 2021 feasibility update for the wholly-owned site.
Galaxy reported front-end engineering design had been completed, confirming the lowest quartile capital intensity and operating costs for the site. The updated brine reserve estimate of 1.3 megatonnes of LCE reportedly supports a 44-year project life based on reserves only.
The Aussie lithium miner is on watch after reporting a target production of 32,000 tonnes per annum of battery-grade lithium carbonate.
Shares in the Aussie lithium miner have been surging higher over the last year or so. In fact, the Galaxy Resources share price has climbed 41.1% higher in the last 12 months, including a 4.5% gain in yesterday’s session.
The Galaxy Resources share price has been climbing higher of late and is on watch early today after its positive update.