Galan advances to Stage 2 drilling at the Candelas Lithium Brine Project; Stock soars

  • May 16, 2019 AEST
  • Team Kalkine
Galan advances to Stage 2 drilling at the Candelas Lithium Brine Project; Stock soars

Galan Lithium Limited (ASX: GLN), formerly known as Dempsey Minerals Limited, is based out of West Perth, Australia. The company is engaged in the acquisition, exploration and assessment of mineral projects hosting lithium, tin, and tantalum deposits, as well as oil.

Of late, Galan Lithium is exploring for lithium brines within South America’s Lithium Triangle on the Hombre Muerto Salar in Argentina. Hombre Muerto, home to Livent Corporation’s El Fenix operation and Galaxy Resources and POSCO’s Sal de Vida projects, is a premier basin hosting superlative brines of highest grade with lowest degree of impurities.

Within the basin, Galan Lithium is on a major exploration drive at the Candelas Lithium Brine Project situated in the Catamarca province and includes the 15 km by 3-4 km Los Patos channel.

With another step forward, on 16th May 2019, Galan Lithium informed the stakeholders that it had received permits from the Secretaria de Estado de Minería Gobierno de Catamarca (the authority that approves drilling permits in Catamarca, Argentina) for its Stage 2 drill programme at the Candelas Lithium Brine Project. As per the company, permits for around six new drill holes have been granted and the next round of drilling will primarily focus on the northern section of Candelas.

This follows the recently concluded five-holes maiden diamond drilling campaign that Galan initiated in January 2019 to uncover the potential at its highly prospective target. More on details of five holes drilling can be READ here.

On May 7th, 2019, Glan reported that the drilling at the last fifth drillhole, C-05-19, located ~2.4 km southwest of the maiden drillhole (C-01-19) and ~1.8 km west of third drillhole (C-03-19), was completed at 380 m with downhole geophysics and packer testing confirming heavy brine horizon over 140 m  from 240 m to 380 m. Brine samples, sent for laboratory analyses, recorded high specific gravity readings and conductivities in excess of the capacity of the field instruments (being 200 mS/cm).

Drillhole C-06-19 is located ~1.5 km southeast of C-05-19, The drilling is scheduled to commence immediately. Subsequently, Galan aims to define a Maiden Resource during Q3 2019.

Pleased with the latest milestone, Galan’s Managing Director, Juan Pablo Vargas de la Vega quoted, “This is a great step for Galan in Argentina. Once again, obtaining the drilling permits for our stage 2 campaign reflects the Company’s teamwork and experience in Argentina and Australia and Galan remains on track to unlock the significant lithium potential at Candelas, with a potential maiden resource now in sight”.

On account of the extensive exploration & evaluation (AUD 992K), and payments rendered as administration and corporate costs over the quarter ended 31st March 2019, there were ~ AUD 1.24 million of operating cash outflows. The net cash balance stood at ~ AUD 1.39 million.

The company seems to be well on track to tap global lithium boom with its intensive project portfolio and exploration plans, thereby expecting massive AUD 2.5 million to be spent on exploration and evaluation activities in the current quarter (AUD 992K during March quarter).

With around 129.33 million outstanding shares, the GLN stock zoomed up by 8.33% mid-day and is currently trading at AUD 0.250 (AEST 01:42 PM) as on Thursday, 16th 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.

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK