Galan Lithium Limited (ASX: GLN), based in West Perth, Australia, is a mineral exploration company gearing up to be a part of the global electric vehicle (EV) wave that has resulted in an increased demand for lithium, an essential component in the manufacturing of EVs. The company is actively investigating lithium brines across its highly prospective tenure on Salar de Hombre Muerto in Argentina, located within the bountiful, world-renowned South America’s Lithium Triangle. Hombre Muerto is proven to host the highest grade and minimally contaminated lithium brines and the company’s primary target has been the Candelas Lithium Brine Project (wholly-owned), which includes a ~15km long by 3-5km wide channel, located in the Catamarca province.
On 20 August 2019, Galan Lithium announced to have appointment Mr Boris Caro as the Study Advisor for overseeing the Pre-Feasibility Study (PFS) that is planned to be executed into the development of the Candelas Lithium Brine Project, once the company completes the maiden Mineral Resource Estimation process (JORC compliant), currently underway, within the ongoing quarter.
Mr Caro is a mining engineer (MAusIMM) from the University of Santiago, Chile with a Masters in Mineral Economics from Curtin University of Technology, Western Australia. Mr Caro brings a wealth of experience after having worked for 20 years in the mineral industry across several countries including Argentina and Australia. His most recent engagement was with Orocobre Ltd as the Study/Project Manager for the Olaroz Expansion Lithium Project in Argentina from May 2017 to April 2019. During his tenure with Orocobre, Mr Caro supervised completion of the Feasibility Study, led front-end engineering, helped in obtaining environmental permits and also oversaw the commencement of construction activities.
At Galan Lithium, Mr Caro would be advising the company and its team on the preferred strategy and study development activities of the PFS. The preparatory works, for the Candelas PFS, are already underway and the brine samples have been forwarded to providers of Ion Exchange technologies for preliminary test work. The definition of initial process design work stream and engineering activities are also being analysed by the company through discussions with various consultants and engineering firms.
Candelas Project Under Focus
Since the onset of 2019, Galan Lithium has been advancing exploration activities and reporting significant headways for the Candelas Lithium Brine Project, where the maiden diamond drilling campaign began in January 2019 and the work to date has indicated the potential for a large resource.
The drilling campaign was successfully conducted in two stages and the results demonstrated that there was high-grade low-impurity lithium present in the eastern boundary of the Basin and also indicated a minimum 3.5 km by 2.5 km strike in the northern portion. More on Stage I and Stage II drilling may be READ here.
The two stages comprised a total of eight drill holes and the summary of the assay results for all of them is tabulated below-
Source: Company’s announcement dated 22 July 2019
Following a technical review into alternative processing technologies that went on for six months, the company reported on 3 July 2019, to have started with a preliminary assessment of ion exchange technologies for processing lithium brines obtained from the Candelas basin. The results of both the studies would be fed into the PFS. The company is also planning to commission a pilot plant by Q3 2020 and eventually move into production.
Western Basin Tenements
Of late, Galan Lithium has also received permits from the Secretaria de Estado de Minería to commence maiden drilling at its Western Basin concessions, which include Santa Barbara, Rana del Sa, El Deceo, Catalina and Pata Pila, straddling the borders between Salta and Catamarca provinces on Salar De Hombre Muerto. The permits have been granted for a total of 14 drill holes along with 5 water bores, and the drilling is expected to be completed within 18 months from commencement. The company has received consistent support from the regional authorities and the local communities for its endeavours within the Salar, as it continues to generate large-scale employment opportunities through its activities.
The preparatory works have been finished for the Pata Pila and Rana del Sal tenements, which are the initial targets of the drilling campaign focusing on analysing the anomalies (highly-conductive) recorded from the previously completed CSAMT surveys in September 2018.
Extension of SPP closing date
On 20 August 2019, Galan Lithium Limited updated the market regarding the extension of closing date for its share purchase plan (SPP). The date has been extended to 5:00pm (AWST) on 13 September 2019 from the earlier announced closing date of 23 August 2019.
The closing date extension decision is aimed at giving the opportunity to participate to all the eligible shareholders, as some of the interested shareholders of the company experienced delays in the receipt of their SPP offer documents. Applications and payment must now be received by 5pm (AWST) on Friday 13 September 2019. The issue date for Shares subscribed for under the SPP will now be on or around 17 September 2019, with quotation of new Shares and dispatch of holding statements scheduled to take place on or around 18 September 2019. No other changes have been made to the terms and conditions of the SPP as set out in the SPP announcement dated 5 August 2019. More on SPP could be READ here.
Galan Lithium Limited has a market capitalisation of around AUD 21.58 million with 134.89 million shares outstanding. On 20 August 2019, the GLN stock price settled the day’s trading at AUD 0.160 with ~ 10.287 shares traded.
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