Galan Lithium (ASX:GLN) has hit a substantial intercept of lithium bearing brines from first drill hole at its Candelas project in the Hombre Muerto, Argentina.
The hole, which was completed to a depth of 401 metres, encountered brines over 166 metres from 235 metres to end of hole.
Assays have been received for two further intervals including 771 mg/l Li over 310 – 330m and 806 mg/l Li over 353 – 354m. Flow rates were observed to be very good throughout the intercept, however these diminished near the end of the hole.
Further brine samples to the end of the hole have also been collected and sent to the laboratory for analysis.
These initial results are exceptional, confirming the presence of high-grade lithium bearing brines within a geological setting unique to the Hombre Muerto salar,” Galan’s Managing Director, Juan Pablo (“JP”) Vargas de la Vega said.
“We have encountered exceptionally good grades with low impurities which are comparable to the rest of Hombre Muerto Basin where Livent, POSCO and Galaxy have their operations.
“We believe we have a potential world class lithium project on our hands which we are keen to further demonstrate in our ongoing drilling”.
Detailed flow rate testwork is planned for a later date and the drill rig will now be moved to the second site located approximately 9.5km to the south on CSAMT resistivity section line 4.
Galan will aim to fast track the exploration work at Candelas with the goal 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.
Shares in Galan were trading 1.5c higher at 37.5c early on Wednesday.