Galan Lithium Limited (ASX: GLN) is an ASX listed mineral exploration company with a major bent towards lithium brines located within South America’s Lithium Triangle on the Hombre Muerto Salar (hosting high-grade and lowest impurity levels) in Argentina.
Of late, the company is shining with key milestones achieved for its five-hole maiden diamond drilling campaign, which began in January’19 and now approaching a successful conclusion, at the highly prospective Candelas Lithium Brine Project located in Catamarca province.
The Candelas Lithium Brine Project covers a ~15 km long by 3-5 km structurally controlled Los Patos channel within the Hombre Muerto Salar basin.
The Secretaria de Estado de Mineria – Gobierno de Catamarca granted the permits for the same in December 2018, following which Galan initiated works to swiftly unlock the potential at its new target with a net cash in hand of $ 1.92 million as of 31st December’19.
The geophysics then obtained, followed by promising drilling results at Candelas affirmed that the site is home to a substantial volume of brine. In hindsight, an exceptional intercept of 192 m @ 802 mg/l was first received from the maiden drill hole (C-01-19) in March 2019. The check analysis of samples confirmed high grades with very low impurities (MG, SO4), paving way for continuation of the drill.
The second drill hole (C-02-19), located on geophysical CSAMT line 4 approximately 9.5 km south of the maiden drill hole, successfully commenced thereafter. While, drill hole C-02-19 largely replicated the geology of the maiden drill hole including good levels of potential porosity within a thick sequence (~231 m) of conglomerates (105 m thick in C-01-19), the second drill hole also encountered fractured basement at 632 m and was completed to a total depth of 662 m. Besides, the preliminary field data from a 202 m section returned conductivity levels ~90,000 mS/cm and specific gravity (SG) of ~1.045, that was a lower order than those recorded in C-01-19 but were still expected to return lithium values albeit at lower levels.
With no time lapse, the third drillhole C-03-19, located approximately 2.5 km south of the maiden drillhole (C-01-19), was underway and successfully completed, to a depth of 430 m after encountering fractured basement at 398 m, with assays disclosed on April 10th, 2019. The results derived were outstanding and included an intercept of 192m @ 802 mg/l Li with low impurities. Several Packer tests of brine showed high conductivity levels between 183 to >200 mS/cm.
After the downhole geophysical logging and further sampling of the brine, the rig was moved to the fourth drillhole C-04-19, ~ 5.3 km south of C-01-19 and ~3 km south of C-03-19. The field test returned a moderately conductive, from 100 mS/cm to ~ 143 mS/cm, brine horizon intercepted over 117 m from ~ 371 m to 488 m to the end of the hole, as announced on April 30th, 2019.
Recently, on May 7th,2019, Galan pleasingly informed that the upper levels of a brine bearing aquifer had been encountered in the fifth drillhole, C-05-19, located ~2.4 km southwest of the maiden drillhole and ~1.8 km west of C-03-19. Conductivity measurements from brine samples taken from packer testing an interval from 280m to 320m exceeded the 200 millisiemens/cm limits of the field recording instrument, while the drilling is still ongoing and progressing well.
Galan Lithium aims to define a resource estimate by the third quarter of 2019 and can confidently envision a profitable period ahead that would return immense benefits derived from the commercial production.
With around 129.33 million outstanding shares, the GLN stock is trading at AUD 0.245 on 13th May 2019 at AEST 03:10 PM AEST.
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