Shares in Galan Lithium have shot up today on news initial assays from its maiden drillhole at the Candelas lithium brine project have confirmed thick, high-grade lithium bearing brines.
The drillhole successfully encountered a substantial intercept of brine over 119 metres from depths of approximately 235 to 354 metres with a partial intercept of 65 metres averaging 862 mg/l lithium from 235 – 300 metres.
A further plus is the brine has low impurity levels with an MG/Li ratio of less than three which is comparable with high quality brines currently being mined elsewhere in Argentina and in particular at the Fenix operation, Hombre Muerto by Livent Corporation (NYSE: LTHM).
SRK Consulting (Argentina) Senior Consultant Geologist Camilo de los Hoyos – who is providing onsite QA/QC control and technical support – said preliminary field measurements and laboratory analyses on brine suggested the Candelas Project had the potential to become a world‐class soluble lithium deposit hosted in a unique geological setting.
Further results from exploration must be assessed step by step to define matrix specific yield and hydraulic conductivity, brine quality and aquifer geometry,” he said.
“To encounter lithium grades of this tenor with low impurities in our first hole is remarkable and has given us further encouragement that the Candelas project has the potential to host a significant resource of lithium bearing brines,” Galan’s Managing Director, Juan Pablo (“JP”) Vargas de la Vega said.
“The team is working full steam ahead to advance the programme and we intend to fast track exploration along the 15km extent of the project”.
Galan will aim to fast track the exploration at Candelas with the goal of targeting a resource as soon as practicable.
The maiden drill programme is planned to comprise five holes drilled along the ~15 km extent of the Candelas channel.
Shares in Galan have climbed as much as 11.5c, or 37%, to an intraday high of 43c on Wednesday.