West Perth-based Galan Lithium Limited (ASX: GLN), established in 2011, is a metals and mining sector player. The company is involved in the acquisition of and developing mineral deposits with a key bent towards lithium.
GLN stock soared over 18%, settling at AUD 0.260 (On 22nd May 2019), as compared to the previous day’s close of AUD 0.220.
As per Albemarle Corp, world’s largest producer of lithium, the global lithium demand is estimated to grow by 21 per cent annually. According to the industry experts, there is no evidence of a lithium slowdown as can be perceived from the doubling of sales of the new-energy vehicles in China last year.
As the momentum around plug-in hybrids and battery-electric models continues to accelerate, investors may keep a close watch on Galan, which seems to be strongly positioned to tap this lucrative business landscape with its strong project portfolio.
Galan has 100% earning interest in projects located within the South American Lithium Triangle on Salar del Hombre Muerto in Argentina. Hombre Muerto is a world-renowned basin abundant with lithium brines and encompassing around six project areas with landholdings covering ~ 25,000 hectares. Besides, the basin offers a rich and conducive landscape for lithium brine development with ground waters sourcing volcanic rocks, closed periphery, hydrothermal activity, arid climate along with faulted environment.
Within Hombre Muerto, Galan Lithium is on an expedition to fully develop the highly-prospective Candelas Lithium Brine Project towards commercial production in the future. The project is situated in the Catamarca province, which includes the Los Patos channel (15 km by 3-4 km).
Galan Lithium’s tenure and location of drillholes at Salar Hombre Muerto (Source: ASX announcement 16 May’19)
After the permits were received from the Secretaria de Estado de Mineria – Gobierno de Catamarca (the authority that approves drilling permits in Catamarca, Argentina) in Dec’18, Galan commenced its extensive five-hole maiden diamond drilling campaign (Stage 1) at Candelas Project in Jan’19. Following the encouraging results achieved during first four drill holes, the company has recently reported the completion of the fifth drillhole C-05-19 at 380m with the brine samples recording high specific gravity readings and conductivities above the field instruments’ capacity.
Galan Lithium has further received the drilling permits for six new drillholes to move ahead with its Stage 2 drill programme at Candelas. Drillhole C-06-19 is located ~ 1.5km southeast of C-05-19 with drilling scheduled to kick off shortly. The drill’s primary target would be the northern section of Candelas, as per the company. With consistent forward leaps, Galan is aiming to define a Maiden Resource by the third quarter (Q3) of 2019.
On the financial front, the company had cash in hand of ~ AUD 1.39 million as of 31st March 2019, further intending to spend ~AUD 2.5 million over drilling and exploration initiatives in the current quarter. In addition, a $ 4 million share placement was also successfully completed in April 2019 to finance the Candelas drill campaign and meet working capital requirements.
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