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Galan Lithium Ltd

Galan Lithium hits more high-grade brine at Candelas project in Argentina

Candelas is in South America’s ‘lithium triangle’ on Hombre Muertos salar, which hosts the highest grade and lowest impurity levels in Argentina.

Drilling at Candelas project
A maiden resource estimate is expected later this quarter

Galan Lithium Ltd (ASX:GLN) has returned a further broad high-grade lithium intersection with low impurities as it progresses a maiden resource estimate for Candelas Lithium Brine Project in northern Argentina.

The 70.4 metres at 744 mg/l lithium interval returned from hole eight confirmed a lateral brine extension and high-grade continuity.

It is the final hole in the company’s initial drilling campaign which will be used for a maiden JORC-compliant resource estimate to be delivered later this quarter.

READ: Galan Lithium to test ion exchange technology for lithium brine processing at Candelas project

Galan Lithium managing director, JP Vargas de la Vega, said: “We are delighted with results from hole eight and now have a fuller picture of Candelas that shows high-grade continuity over a large area in the northern section of the channel.

“With this new data, Galan will now commence work on its maiden JORC-compliant resource estimate for the northern portion of Candelas which is on track for delivery in Q3 this year.

“The resource will form the basis for our pre-feasibility study which will investigate conventional technologies and be complemented with results from brines already sent to international laboratories to

test new lithium extraction technologies.”

READ: Galan Lithium drill results confirm at least 3.5 kilometres of heavy brines

After positive laboratory results for hole eight indicted the 70.4-metre interval, initial packer results from a 5-hour pumping test yielded 655 mg/l lithium.

The hole was then cased and the interval resampled utilising a more comprehensive 72-hour pumping test.

Results indicated an increase in grade to 744 mg/l lithium and a brine density of 1.80, compared to 1.162 using the 5-hour test, with both conductivities remaining above 200 mS/cm.

The hole also positively tested and confirmed the presence of high-grade lithium close to the eastern boundary of the Candelas basin.

This indicates a minimum 3.5-kilometre strike and 2.5-kilometre width extent in this northern portion of Candelas.

READ: Galan Lithium managing director purchases another 84,000 shares on-market

All five holes at Candelas North graded greater than 500 mg/l lithium while results continue to show exceptionally low levels of impurities with Mg/Li ratios of less than 2.80.

This is in line with the impurity levels observed at the nearby Livent Corp (NYSE:LTHM) El Fenix project and Galaxy Resources’ (ASX:GXY) Sal de Vida project.

SRK to visit site

SRK (Australia) will visit the project site this week as part of their ongoing oversight of the project and to initiate the resource estimation process.

The SRK team will also visit the Western Tenements where site access works for drilling will be finalised once drill permitting has been received.

The MD said: “We soon expect to also receive drilling permits to test our other targets in the Western Basin at Hombre Muerto which have the potential to provide a new production front for Galan.”

Galan is also preparing to begin a pre-feasibility study (PFS) into the potential development of the project.

Quick facts: Galan Lithium Ltd

Price: $0.16

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Market Cap: $21.58 m
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