Galan Lithium (ASX: GLN) has gained ground today after potential new discoveries of lithium brine were defined at the Hombre Muerto project in Argentina.
Results from further Controlled Source Audio-frequency Magnetotellurics (CSAMT) surveys conducted over its Western Basin targets at the project indicate there are several other areas of potential lithium bearing brine sources over its holdings at Hombre Muerto.
Galan is now awaiting final permitting to conduct drilling over its projects, which it hopes to receive in the current quarter, and is advancing contracts for drilling and for the camp, OH & S, catering and general logistics.
The survey was completed in late September by Quantec Geoscience Ltd and comprised four CSAMT lines covering 10.6km. The targets lie in the Western Hombre Muerto basin adjacent to Livent Corporation’s (formerly FMC) Fenix lithium brine operation.
Earlier this month, Livent Corporation (NYSE:LTHM) listed raising US$340m with a market capitalisation at listing of US$2.43 billion.
In their conclusions, Quantec confirmed:
The 4 CSAMT lines show very conductive and shallow responses that are compatible with units being saturated with brine, which constitute a great potential for lithium exploration.”
Furthermore, and significantly for the prospectivity of the Candelas target, Quantec stated: “The range of resistivity values is very similar to that observed in the Candelas sector (over the east in Salar de Hombre Muerto), where there are previous CSAMT surveys also having great brine potential”.
This implies that grades are expected to be of a similar nature in both regions and comparable to that being extracted by Livent at their adjacent Fenix operations.
According to Galan, these are the first ever surveys conducted over these targets.
While profiles were interpreted to a depth of approximately 600m, Galan said caution was advised on deeper results since the extremely low conductivity materials can have a diminished response with depth.
The Hombre Muerto Basin is, globally, one of the most prolific lithium bearing salt flats hosting some of the lowest levels of impurities in the industry.
Shares in Galan were trading 2c, or 7%, higher at 33c in late morning trade.