Galan Lithium Limited (ASX: GLN), based in West Perth, Australia, explores, acquires and evaluates mineral projects, with a primary bent towards lithium brines within South America’s Lithium Triangle (possessing high-grade lithium deposits) on the Hombre Muerto salar. The company holds rights to earn 100% interest in a couple of projects such as the Hombre Muerto lithium project and the Greenbushes South project (E70/4629).
Within the Hombre Muerto Salar basin, Galan is accelerating works at the highly prospective Candelas lithium brine project situated in the Catamarca province and covers the Los Patos channel (15 km by 3-4 km).
The Canada-based international drilling company, Major Drilling, was appointed to undertake the diamond drilling at Candelas and subsequently, the maiden drilling programme commenced in late January 2019. Additionally, Galan contracted the services of SRK Australia to oversee resource definition, QA/QC, and review work over the project.
A substantial intercept of Brine was discovered at the maiden drillhole (C-01-19) and was reported on February 6th, 2019. Consequently, Galan announced to have completed drilling, casing and sampling at its second (March 20th, 2019) and third drillhole (April 17th, 2019) over the last two months. Thereafter, the works at the fourth drillhole and fifth drill hole were started around mid-April 2019, in line with the target to define a resource in Q3 of this calendar year 2019.
On May 7th, 2019, the company announced that field measurements indicate that the upper levels of a brine bearing aquifer have been encountered in the fifth drillhole, C-05-19, at the Candelas Lithium Brine Project. The drillhole is located ~2.4km southwest of the maiden drillhole (192m @ 802 mg/l Li) and ~1.8 km west of drillhole C-03-19 (143m @ 784 mg/l Li) with low impurities.
With around 129.33 million outstanding shares, the GLN stock is trading at AUD 0.290, shooting up 16% with ~ 993,920 shares traded on May 7th, 2019 at 02:09 PM AEST.
The geological sequence at C-05-19 was observed to be largely similar to that in the other drill holes and contains a thick layer of ignimbrite lying below the surficial alluvial cover and brines hosted within a permeable breccia-conglomerate. Besides, conductivity measurements from brine samples taken from packer testing an interval from 280-metre to 320-metre exceeded the 200 millisiemens /cm limits of the field recording instrument whilst high specific gravity was recorded at 1.195 g/cm3.
Drilling is reportedly ongoing and advancing well on schedule. On completion, the company will proceed to conduct downhole geophysical logging and further packer tests to collect samples for analyses.
Galan’s Managing Director, Juan Pablo Vargas de la Vega commented on the results and quoted “The result reinforces our view that the project has the potential to host a significant lithium resource on one of the world’s premium salars at Hombre Muerto. We look forward to finalising the hole and confirming that grades and impurity levels are consistent with those already observed in this area.”
Given the focus on lithium assets, the company is also reviewing its exposure over the Alasehir Exploration license hosting oil deposits in Western Turkey, where it holds 75% interest acquired via an Option and Sale & Purchase Agreement signed with Petroz Limited.
As per the recently released March quarterly results, the company raised gross proceeds of around $ 4,000,000 via a share placement to professional and sophisticated investors at an issue price of $ 0.275 per share. Barclay Wells Limited was the lead manager to the placement whilst Tectonic Advisory Partners acted as the North American placement agent.
The funds raised were indicated to be directed towards its maiden drilling campaign along the Candelas channel, commence initial resource work and working capital requirements. The net cash balance as of the end of the three months was ~ AUD 1.39 million. The company intends to spend ~ AUD 2.5 million next quarter over exploration operations.
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