Galan Lithium’s Project Portfolio All Set To Tap Global Lithium Boom

Galan Lithium Limited

Australia’s lithium player, Galan Lithium Limited (ASX: GLN), formerly known as Dempsey Minerals Limited, seems to be finely positioned to cash in the gaining momentum of global lithium industry boom. Particularly, the surge in the electric-vehicle battery capacity demand is expected to have crucial positive implications for the lithium producing companies, forming part of the battery value-chain.

The company, established in 2011 and based in West Perth, Australia, is engaged in the acquisition, exploration and assessment of mineral projects primarily hosting lithium, tin, and tantalum deposits, as well as oil.

The company holds the rights to earn 100% interest in projects located within Argentina’s South American Lithium Triangle namely the Hombre Muerto lithium project and the Greenbushes South project comprising one Exploration Licence (E70/4629) covering an area of approximately 43 km2 located to the south of the Greenbushes mine.

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The Hombre Muerto Salar is a world-class, premier bearing brine basin in Argentina and comprises six project areas totalling ~ 25,000 Ha of landholdings. The basin has a rich setting for lithium brine development with some of its key characteristics being the presence of ground waters sourcing volcanic rocks, hydrothermal activity, closed periphery, arid climate as well faulted environment.

Within the basin, Galan Lithium is primarily focussed on accelerating works at the Candelas lithium brine project located in Catamarca province, which encompasses the 15 km by 3-4 km Los Patos channel and possesses immense exploration potential, adjacent to Galaxy’s Sal de Vida project (1.14 Mt LCE Reserve).

On April 17th, 2019, the company announced to have completed drilling, casing and sampling its third drillhole C-03-19, now at a final depth of 454 m, within the Candelas lithium brine project. The drillhole is located approximately 2.5 km south of the maiden drillhole (C-01-19) which initially provided an intercept of 192 m @ 802 mg/l Li with low impurities as reported on March 11th, 2019. Subsequently, the works at the fourth drillhole (C-04-19) commenced and are now underway.

The final assay results from the third drillhole were recently published following the execution of downhole geophysical logging several packer tests, collection of samples and their analyses. The field tests indicated a major brine intercept while the assays confirmed an exceptional intercept of 143 m @ 784 mg/l Li from 311 m to 454 m with low impurities.

In addition, Galan Lithium is also developing plans to commence exploration over the Alasehir Exploration license located in Western Turkey, where it acquired a 75% interest through signing of an option agreement. It is an elongate Tertiary graben spanning over approximately 100 km. The basin exhibits several similarities to the prolific oil producing Tertiary basins of South East Asia and the giant oil-bearing African rift valleys.

The company spent $ 1.52 million and $ 264.2k million, respectively in the operating and investing activities undertaken during half year ended December’18. These include extensive exploration initiatives, payments to suppliers, contractors & staff and advances extended to its subsidiary Galan Exploraciones S.A. to fund its activities. The financing activities added ~ $ 2.02 to the net cash inflows due to issue of equities and proceeds from option conversion.

With around 129.33 million outstanding shares, the GLN stock price settled the day’s trading at AUD 0.245 on 3rd May 2019.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform. 

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