AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
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 dayâs close of AUD 0.220.
As per Albemarle Corp, worldâs 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 Lithiumâs tenure and location of drillholes at Salar Hombre Muerto (Source: ASX announcement 16 Mayâ19)
After the permits were received from the Secretaria de Estado de Mineria â Gobierno de Catamarca (the authority that approves drilling permits in Catamarca, Argentina) in Decâ18, Galan commenced its extensive five-hole maiden diamond drilling campaign (Stage 1) at Candelas Project in Janâ19. 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 instrumentsâ 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 drillâs 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.
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.
