viewGalan Lithium Ltd

Galan Lithium’s drilling confirms thick lithium-bearing brines at Candelas, shares jump

Impurity levels are low; comparable with high-quality brines currently being mined at Hombre Muerto.

Drill rig on Hombre Muerto salar
More detailed sampling and downhole geophysics will be undertaken

Galan Lithium Ltd (ASX:GLN) has confirmed thick, high-grade lithium-bearing brines from its maiden drill hole at the Candelas Lithium Brine Project in Hombre Muerto, Argentina.

The drill hole is currently at 354 metres and encountered a substantial 119-metre intercept of brine from a depth of 235 metres.

Investors responded positively to the results with shares jumping almost 37% in early trading to a new 12-month high of 43 cents.

Preliminary results include 65 metres at an average of 862ppm lithium from 235 metres.

Visual estimations of porosity suggest medium to high porosity for the sand and conglomerate beds whilst the fractured basement is reporting good brine flows from airlift testing.

Furthermore, the magnesium/lithium ratio, being less than 3, is comparable with high-quality brines being mined elsewhere in Argentina and in particular by Livent Corp (NYSE:LTHM) at its nearby Fenix operation on the Hombre Muerto salar.

Also, the lithium grades are potentially under-reporting as these initial brine samples contain a proportion of drilling fluids (injected fresh water) of about 5-15%.

Future sampling will involve low-flow pump and/or packer testing to alleviate this.

Whilst it is early days, Galan is greatly encouraged by this initial success and now awaits confirmation of these results from further samples and testing.

The company will aim to fast-track the exploration at Candelas with the goal of targeting a resource as soon as practicable.

This maiden drill program is planned to comprise five holes drilled along the 15-kilometre extent of the Candelas channel.

Galan’s tenure at salar Hombre Muerto.

Galan managing director Juan Pablo Vargas de la Vega said: “To encounter lithium grades of this tenor with low impurities in our very first hole is remarkable and has given us further encouragement that the Candelas project has the potential to host a significant resource of lithium-bearing brines.

“The team is working full steam ahead to advance the program and we intend to fast-track exploration along the 15-kilometre extent of the project as much as we can.”

Furthermore, the company’s independent technical consultants, SRK Consulting, stated: “Preliminary field measurements and laboratory analyses on brine suggests that the Candelas project has the potential to become a world-class soluble lithium deposit hosted in a unique geological setting.”

Quick facts: Galan Lithium Ltd

Price: 0.24 AUD

Market: ASX
Market Cap: $38.24 m

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