It has been a good start to drilling for Galan Lithium (ASX: GLN) at its Candelas lithium brine project on the Hombre Muerto salar in Argentina with the maiden hole intercepting highly conductive brines.
The brine was intercepted from a depth of around 235 metres to the current depth of around 300 metres.
According to Galan, conductivity measurements from brine samples exceeded the 200 milli siemens/cm limits of the field recording instrument.
Galan’s Managing Director Juan Pablo (“JP”) Vargas de la Vega said the company was greatly encouraged by this initial success which confirms the company’s geological model that brine does exist within the feeder channel into Hombre Muerto.
We are delighted that we have successfully encountered this amount of brine in ideal host sediments in our very first drillhole at Candelas,” he said.
“Whilst we still await confirmation that the brine is lithium bearing, the fact that brines even exist in an area not previously thought to be prospective is particularly pleasing and augers well for the continued exploration of the 15km long channel at the project”.
Galan is now waiting on confirmation the brine is lithium bearing from preliminary samples which are to be transported to the laboratory in Argentina. Samples are also being collected and sent to the USA for porosity test work particularly to determine specific yield (drainable porosity).
Local representatives of the Company’s independent consultants SRK Australia have reviewed the Company’s procedures and are due on site to see the operations firsthand.
Should the testwork confirm the Company’s expectations then Galan will aim to fast track the exploration at Candelas with the aim of targeting a resource as soon as practicable.
This maiden drill programme is planned to comprise five holes drilled along the ~15 km extent of the Candelas channel.
The Hombre Muerto salar, on which the Candelas channel is located, is proven to host the highest grade and lowest impurity levels of lithium brines within Argentina and is home to Livent Corporation’s El Fenix operation and Galaxy Resources and POSCO’s Sal de Vida projects.
Shares in Galan hit an intraday high of 35c today, up 2c or 6%.