Investors have jumped back in to Galan Lithium (ASX: GLN) today on news of highly encouraging results from the third drillhole at the Candelas Lithium Brine Project located on the Hombre Muerto salar in Argentina.
The stock soared 6.5c, or 28%, to an intraday high of 29.5c today after highly conductive brine was intercepted from depths of approximately 280m to the current depth of ~309m.
The drilhole – C-03-19 – lies approximately 2.5kms southeast of the maiden drillhole which provided outstanding results including an intercept of 192m at 802 mg/l Li with low impurities.
What is highly encouraging is that conductivity measurements from brine samples exceeded the 200 millisiemens/cm limits of the field recording instrument whilst specific gravity was recorded at 1.13 g/cm3.
The discovery of further brines within the Candelas channel reinforces our view that the project has the very real potential to host a significant lithium resource in one of the world’s premium salars at Hombre Muerto. I look forward to updating shareholders as we continue drilling the third hole”.
The geological sequence largely replicates that observed in the maiden drillhole incorporating a thick layer of ignimbrite lying below surficial alluvial cover.
Galan has also received assays from the second drilhole located ~9.5km south of the maiden drillhole.
Drillhole C-02-19 encountered fractured basement at 632m and was completed to a total depth of 662m. These assays confirm the field observations which indicated a lower grade lithium bearing aquifer interpreted to be due to dilution from hydrothermal waters.
Shares in Galan last traded 28c.