Galan Well On Track For Resource Definition At Highly Prospective Candelas Lithium Brine Project

Galan Lithium Limited (ASX:GLN) is an ASX listed mineral exploration company with a major bent towards lithium brines located within South America’s Lithium Triangle on the Hombre Muerto Salar (hosting high-grade and lowest impurity levels) in Argentina.

Of late, the company is shining with key milestones achieved for its five-hole maiden diamond drilling campaign, which began in January’19 and now approaching a successful conclusion, at the highly prospective Candelas Lithium Brine Project located in Catamarca province.

The Candelas Lithium Brine Project covers a ~15 km long by 3-5 km structurally controlled Los Patos channel within the Hombre Muerto Salar basin.

The Secretaria de Estado de Mineria – Gobierno de Catamarca granted the permits for the same in December 2018, following which Galan initiated works to swiftly unlock the potential at its new target with a net cash in hand of $ 1.92 million as of 31st December’19.

The geophysics then obtained, followed by promising drilling results at Candelas affirmed that the site is home to a substantial volume of brine. In hindsight, an exceptional intercept of 192 m @ 802 mg/l was first received from the maiden drill hole (C-01-19) in March 2019. The check analysis of samples confirmed high grades with very low impurities (MG, SO4), paving way for continuation of the drill.

The second drill hole (C-02-19), located on geophysical CSAMT line 4 approximately 9.5 km south of the maiden drill hole, successfully commenced thereafter. While, drill hole C-02-19 largely replicated the geology of the maiden drill hole including good levels of potential porosity within a thick sequence (~231 m) of conglomerates (105 m thick in C-01-19), the second drill hole also encountered fractured basement at 632 m and was completed to a total depth of 662 m. Besides, the preliminary field data from a 202 m section returned conductivity levels ~90,000 mS/cm and specific gravity (SG) of ~1.045, that was a lower order than those recorded in C-01-19 but were still expected to return lithium values albeit at lower levels.

With no time lapse, the third drillhole C-03-19, located approximately 2.5 km south of the maiden drillhole (C-01-19), was underway and successfully completed, to a depth of 430 m after encountering fractured basement at 398 m, with assays disclosed on April 10^th, 2019. The results derived were outstanding and included an intercept of 192m @ 802 mg/l Li with low impurities. Several Packer tests of brine showed high conductivity levels between 183 to >200 mS/cm.

After the downhole geophysical logging and further sampling of the brine, the rig was moved to the fourth drillhole C-04-19, ~ 5.3 km south of C-01-19 and ~3 km south of C-03-19. The field test returned a moderately conductive, from 100 mS/cm to ~ 143 mS/cm, brine horizon intercepted over 117 m from ~ 371 m to 488 m to the end of the hole, as announced on April 30^th, 2019.

Recently, on May 7^th,2019, Galan pleasingly informed that the upper levels of a brine bearing aquifer had been encountered in the fifth drillhole, C-05-19, located ~2.4 km southwest of the maiden drillhole and ~1.8 km west of C-03-19. Conductivity measurements from brine samples taken from packer testing an interval from 280m to 320m exceeded the 200 millisiemens/cm limits of the field recording instrument, while the drilling is still ongoing and progressing well.

Galan Lithium aims to define a resource estimate by the third quarter of 2019 and can confidently envision a profitable period ahead that would return immense benefits derived from the commercial production.

With around 129.33 million outstanding shares, the GLN stock is trading at AUD 0.245 on 13^th May 2019 at AEST 03:10 PM AEST.

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