Galan Lithium Ltd (ASX:GLN) has identified a brine section from 205 metres to the bottom of the hole at 401 metres in its maiden drill hole (C‐01‐19) at the Candelas Lithium Brine Project in Hombre Muerto, Argentina.
Accordingly, the drill hole was cement cased down to 205 metres and sampled over a 192 metres section to 397 metres.
The section was repeatedly flushed before samples of clean brine were taken and an exceptional intersection of 192 metres at 802 mg/litre lithium returned.
Impurity levels continue to return low values for magnesium, with a magnesium:lithium ratio of about 2.70, whilst sulphate levels relative to lithium also returned low levels at 8.40.
Importantly, these values are similar to those observed nearby at Livent’s Fenix and Galaxy Resources’ (ASX:GXY) Sal de Vida operations.
Second drill hole
Following its successful maiden drill hole (C‐01‐19) a second drill hole (C‐02‐19) successfully commenced and is currently at about 465 metres depth.
The hole largely replicates the geology of the maiden drill hole, encountering a thick layer of ignimbrite to 167 metres below shallow alluvial cover.
The hole then encountered a very thick sequence of sands and clays before entering a breccia conglomerate similar in character to that observed in the maiden drill hole.
Sampling drill hole C‐02‐19
The tectonic basin in this area (about 9.5 kilometres south of the maiden drill hole) is much deeper, perhaps up to about 750 metres, than in the north as evidenced by Galan’s gravity survey.
It is the technical team’s view that the increased basin depth may be a result of horst‐graben structures creating a downthrown block in this area and the target brine horizon commences at depth in a similar position above the basement as in drill hole C‐01‐19.
Response to ASX price query
Galan had received a query from the ASX on March 4 2019 related to the company’s shares rising from a low of 51 cents at the close of trading on March 1 to a high of 67 cents on March 4.
The company responded to the query today explaining that it was not aware of any information that had not been released to the market which, if known, could be an explanation for the recent increase in its share price.
However, Galan noted the speculation that has arisen since its announcement dated February 13 2019, titled “New High-Grade Lithium Discovery” and the subsequent commencement of drilling on the second hole at the Candelas Lithium Brine Project.
The increase in Galan share price may also have been a reflection of the positive lithium market outlook, experienced across larger Australian lithium producers, over the period from February 19 to March 4, 2019.
Additionally, the company noted the announcement by its project neighbour Galaxy Resources confirming the completion of the partial sale of its project for US$280 million to POSCO on February 25 2019.