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Galan Lithium Receives Argentine Drilling Permits

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) has received permits from the Secretaria de Estado de Minería ‐ Gobierno de Catamarca (the authority that approves drilling permits in Catamarca, Argentina).

The permitting allows Galan Lithium to conduct a maiden drill program over the company’s Western Basin projects located on the Hombre Muerto salar in Argentina.

The permits come following the recent completion of Galan’s initial resource drilling phase over the Candelas project located in the south‐east region at Hombre Muerto.

The company has been granted permits to drill a total of 14 drillholes plus five water bores within 18 months.

Work to enable access in preparation for drilling is now underway with drilling to commence thereafter.

Initial exploratory drilling is planned within the Pata Pila and Rana del Sal project areas.

“The drilling will target highly conductive anomalies recorded from CSAMT (Controlled Source Audio‐frequency Magnetotellurics) surveys previously completed in late September last year,” Galan Lithium said in its ASX announcement.

“These were the first surveys ever conducted over these targets with cover alluvial fans interpreted by the company to overlie prospective salar.

Pata Pila covers a large alluvial fan along the western margin of the salar with the geophysical profile showing an upper, horizontal conductive layer over approximately two kilometres being compatible with geological units interpreted to contain brines.

The Rana de Sal profile covers an alluvial fan area interpreted to overlie the salar.

The geophysical profile shows a highly conductive response over approximately 1.5km that are compatible with units interpreted to contain brines.

The eastern end shows the conductive anomaly remaining open, as expected, as the line enters the salar in the area where Livent has its operations.

Towards the west a more resistive unit is interpreted as basement.

 

Website: www.galanlithium.com.au

 

Galan Lithium Hits Conductive Brines Drilling Fifth Hole at Candelas

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) is currently drilling the fifth drill hole at the company’s Candelas lithium brine project located on the Hombre Muerto salar in Argentina.

Galan Lithium said that field measurements indicate that the upper levels of a brine bearing aquifer have been encountered by the hole and that the geological sequence largely replicates that observed in the earlier drill holes incorporating a thick layer of ignimbrite lying below surficial alluvial cover.

The company explained that hole has encountered a sequence of sands and clays hosting salty waters which then turned to brines hosted within a permeable breccia-conglomerate.

Conductivity measurements from brine samples taken from packer testing an interval from 280m to 320m exceeded the 200 millisiemens/cm limits of the field recording instrument whilst high specific gravity was recorded at 1.195g/cm3.

Drilling is ongoing and when completed, downhole geophysical logging will be conducted, and further packer tests performed to collect samples for analyses.

“The discovery of further brines confirms that there is consistent brine coverage over a large area in this northern part of the Candelas channel,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s announcement to the Australian Securities Exchange

“The result reinforces our view that the project has the potential to host a significant lithium resource on one of the world’s premium salars at Hombre Muerto.

“We look forward to finalising the hole and confirming that grades and impurity levels are consistent with those already observed in this area.”

 

Website: www.galanlithium.com.au

 

Galan Lithium Animates The Life of Brine

With potential world-class projects in one of the hottest lithium jurisdictions globally, cash in the bank and a handful of exceptional exploration results under its belt, things are certainly looking promising for Galan Lithium Limited (ASX: GLN).

The Argentina, lithium-focused minnow wholly-owns six projects covering around 25,000 hectares, with potential lithium brine coverage conservatively comprising around 7,800 hectares, in South America’s Lithium Triangle on the Hombre Muerto salar in Argentina.

Straddling the northwest corner of Argentina, northern Chile and southwest corner of Bolivia, the Lithium Triangle hosts the world’s largest reserves of lithium and around 60 per cent of world’s annual production of lithium, the bulk of which lies in the Atacama salar in Chile and Hombre Muerto salar in Argentina.

Hombre Muerto – which lies in the northwest corner of Argentina – hosts the highest grade and lowest impurity levels of lithium in the country and is the second best salar in the world globally for lithium brine production after Atacama.

Galan believes its landholding in the Hombre Muerto has the potential to host a substantial lithium deposit.

Its six projects – Rana de Sal, Deceo, Catalina, Peta Pila, Santa Barbara and Candelas – are all strategically located in the salar, boarding some of the biggest names in the lithium brine space globally.

The Sal de Vida project – owned by ASX-listed Galaxy Resources with a market cap of $750 million – is regarded as one of the world’s largest and highest quality undeveloped lithium brine deposits.

Galaxy recently sold off the northern portion of the project to POSCO – market cap $30 billion – for a cool US$280 million.

To the west of Sal de Vida lies recent New York-listed Livent Corporation’s Fenix operation which has been in production for over 27 years.

Importantly, Galan has a wealth of experience on its board: managing director Juan Pablo Vargas de la Vega has over 15 years’ experience in ASX mining companies, stockbroking and private equity firms and was a specialist lithium analyst in Australia.

He also has operated a private copper business in Chile and has worked for BHP, Rio Tinto and Codelco.

Priority target – Candelas

Priority target, Candelas, lies adjacent to Sal de Vida and encompasses an approximately 15km long by 3-5km structurally controlled basin, infilled with sediments hosting the brines.

According to Galan’s interpretation of CSAMT (Controlled Source Audio‐frequency Magnetotellurics) surveys, the project showed “…very conductive and shallow units that are compatible with units being saturated with brine, which constitute a great potential for lithium exploration.”

With the geophysical results defining the brine potential, Galan set about planning a maiden drill program to test the geophysical model as well as detailed data on the stratigraphy within the Candelas channel.

After getting the greenlight from the Argentinean government, Galan kicked off a five-diamond hole program in January to test the 12-15-kilometre extent of the Candelas channel.

Results so far from the program have sent tongues wagging in the minerals investment community.

Living up to the hype

Drilled immediately to the southeast of the Hombre Muertos salar, Galan’s maiden hole (C-01-19) certainly lived up to the company’s expectations.

The hole hit a substantial intercept of brine from depths of approximately 200m metres to the end of the hole (401m).

An exceptional high-grade intercept of 192m at 802mg/I Li was returned.

Importantly impurities (magnesium and sulphate) were very low and similar to those observed nearby at the Fenix and Sal de Vida operations.

The maiden hole results sent Galan’s share price skyrocketing to an all-time high of 68 cents in early March 2019.

With their tails in the air, Galan quickly set about drilling their second hole some 9.5km south of the maiden drillhole and located on geophysical CSAMT line 4.

The hole, unfortunately, didn’t quite live up to its predecessor.

While geology was largely similar to that observed in the maiden drillhole, the tectonic basin in the area was much deeper, perhaps up to around 750m, than in the north where C-01-19 was drilled.

Assay results from the hole confirmed field observations that a lower grade lithium bearing aquifer was intercepted.

The lower values were a result of heavy dilution from hydrothermal waters being sourced from an adjacent deep-seated fault zone.

Nearby fumaroles observed at surface supported this interpretation.

C-02-19 was eventually completed to a depth of 662m with basement encountered at 632m.

Third time’s a charm

Despite this slight setback, Galan remained optimistic that Candelas hosted a large lithium resource.

“Much has been achieved to date in a short time frame,” Vargas de la Vega said.

“We are dealing with a unique geological setting for lithium brines and our knowledge of the region increases with the more work we do.

“The lithium potential remains strong for Candelas as it does for our prospective Western tenements at Hombre Muerto.”

Galan quickly set about drilling its third hole (C-03-19) at Candelas, this time 2.5km south of its highly successful maiden hole.

In what was a great relief for the company, the hole intercepted highly conductive brines over around 154m from 276m to the end of hole (430m).

“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,” Vargas de la Vega said.

Downhole geophysics indicated highly conductive and high Specific Gravity (SG) brine was still being encountered to the bottom of the hole resulting in the hole being further deepened to a final depth of 454m.

Several packer tests were performed using the downhole data as guidance which indicated a preferred section from 313m to 454m with conductivities in excess of 200mS/cm and SG readings approximately 1.19 g/cm3.

The rig has now been moved around 3km south of C‐03‐19 and 5.3km south of drill hole C‐01‐19 on CSMAT Line 3 where it has begun drilling the fourth hole.

Galan is also seeking permits from Catamarcan authorities for further drillholes at Candelas beyond the initial five holes approved.

Cashed-up

Shortly after announcing the positive results from its third drillhole in April, the company set about raising $4 million at 27.5 cents per share to fund its ongoing drill campaign at Candelas and start initial resource work.

The share placement received strong support from Australian and North American professional and sophisticated investors.

“We are pleased to have received such strong support from a range of Australian and North American investors, who now join our existing shareholders in aligning themselves to the success we are looking to achieve through our ongoing exploration at the Hombre Muerto lithium project,” Vargas de la Vega said.

“We have achieved positive results to date, which we plan to expand through well planned exploration activities.”

Looking ahead

With significant results under its belt so far from its maiden drill program at Candelas and a $4 million boost to its coffers, Galan is fast tracking exploration with a potential resource estimate targeted for third quarter 2019.

Lithium demand has jumped since 2015 fuelled by the spike in demand for lithium batteries in electric vehicles with current prices around the $US12,550 per tonne lithium carbonate equivalent (LCE).

This demand is only expected to increase with the number of electric vehicles on the world’s roads set to triple by 2020, placing further upward pressure on prices.

 

Email: admin@galanlithium.com.au
Web: www.galanlithium.com.au

Directors: Nathan McMahon, Christopher Chalwell, Terry Gardiner, Juan Pablo Vargas de lea Vega

 

Galan Lithium Confirms High-Grade Lithium over 143 Metres

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) received final assays from the third drillhole (C‐03‐19) drilled at the company’s Candelas lithium brine project, located in Catamarca province, Argentina.

The drillhole is located approximately 2.5 kilometres south of the company’s maiden drillhole (C‐01‐19), which provided results including an intercept of 192 metres at 802 milligrams per litre (mg/l) lithium with low impurities.

Following downhole geophysical logging several packer tests were performed and samples collected and sent for analyses.

Field tests and logging indicated a substantial intercept of brine where assays confirmed an intercept of 143m at 784mg/l lithium from 311m to 454m.

The company explained that following sampling of drillhole C‐04‐19 the rig will be moved north with drilling to focus on resource definition in the northern Candelas channel area.

Permitting for further drilling beyond the initial five holes approved is advanced and expected in the near term.

“The results to date confirm that a potentially substantial volume of high quality, low impurity lithium bearing brine exists over a large area and the company remains on target to define a resource in Q3 this year,” Galan Lithium said in its ASX announcement.

 

Website: www.galanlithium.com.au

 

Galan Lithium Extends Third Candelas Hole

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) announced completion of drilling, casing and sampling of the third drillhole (C‐03‐19) at the company’s Candelas lithium brine project located in Catamarca province, Argentina.

The drillhole is located approximately 2.5 kilometres south of the maiden drillhole (C‐01‐19, figure 1) that included results such as 192 metres at 802mg/l Li with low impurities.

Galan Lithium carried out downhole geophysics following its initial termination of the drillhole, results from which indicated that highly conductive and high Specific Gravity (SG) brine was still being encountered to the bottom of the hole.

The company decided to deepen the hole to a final depth of 454m.

Several packer tests were performed using the downhole data as guidance which indicated a preferred section from 313m to 454m with conductivities in excess of 200mS/cm and SG readings approximately 1.19g/cm3.

The hole was then cement cased to 315m and left open to the bottom of the hole within the brine section.

“Final samples have now been undertaken with results expected in the next fortnight to allow for the Easter break,” Galan Lithium said in its ASX announcment.

The company has now commenced drilling drillhole 4 (C‐04‐19), around 3km south of C‐03‐19 and 5.3km south of drill hole C‐01‐19 on CSMAT Line 3.

 

Website: www.galanlithium.com.au

 

Galan Lithium Hits Further Brines With Third Hole

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) has completed a third drillhole, C‐03‐19, at the company’s Candelas lithium brine project located southeast of the Hombre Muerto salar in Argentina.

Galan Lithium drilled the hole approximately 2.5 kilometres south of its maiden drillhole (C‐01‐19) that provided results including an intercept of 192 metres at 802mg/l lithium with low impurities.

“The geological sequence largely replicates that observed in the maiden drillhole comprising a thick layer of ignimbrite lying below surficial alluvial cover,” Galan Lithium Said in its ASX announcement.

“The hole then encountered a sequence of sands and clays hosting salty waters which then, at approximately 276 metres, turned to brines hosted within a permeable breccia‐ conglomerate and, from 398 metres, within fractured basement.”

Galan Lithium said it would now case the hole and conduct downhole geophysical logging and further sampling of the brine.

Once this has been completed, it anticipates moving the drill rig to a new location to undertake drilling of a fourth drillhole.

The company is also awaiting the permitting for further drillholes at Candelas beyond the initial five holes approved by the Catamarcan authorities.

 

Website: www.galanlithium.com.au

 

Galan Lithium Raises $4M

THE BOURSE WHISPERER: Galan Lithium (ASX: GLN) announced it has received commitments via a share placement to professional and sophisticated investors to raise gross proceeds of $4 million.

Galan Lithium said the placement received strong support from a range of sophisticated and institutional investors from Australia and North America.

Approximately 14.5 million shares will be issued under the placement at an issue price of 27.5 cents per share.

The company indicated the funds raised will enable it to continue and expand its maiden drilling campaign along the Candelas channel at the Hombre Muerto lithium project in Argentina, commence initial resource work and for working capital purposes.

“We are pleased to have received such strong support from a range of Australian and North American investors, who now join our existing shareholders in aligning themselves to the success we are looking to achieve through our ongoing exploration at the Hombre Muerto lithium project,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s announcement to the Australian Securities Exchange.

“We have achieved positive results to date, which we plan to expand through well planned exploration activities.”

 

Website: www.galanlithium.com.au

 

Galan Lithium Drilling Encounters Highly Conductive Brines

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) announced highly conductive brines have been intercepted in the third drillhole at the company’s Candelas lithium brine project located on the Hombre Muerto salar in Argentina.

Galan Lithium said field measurements had indicated the upper levels of a brine bearing aquifer were encountered in the third drillhole to be drilled at Candelas, C-03-19.

The brine was intercepted from depths of approximately 280 metres to the current depth of approx. 309m.

This hole is located approximately 2.5 kilometres southeast of the maiden drillhole which provided results including an intercept of 192 metres at 802mg/l lithium with low impurities.

The company explained the geological sequence largely replicates that observed in the maiden drillhole incorporating a thick layer of ignimbrite lying below surficial alluvial cover.

The hole then encountered a sequence of sands and clays hosting salty waters which then, at around 280m, turned to brines hosted within a permeable breccia-conglomerate.

“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,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s announcement to the Australian Securities Exchange.

The company has also now received assays from this second drill hole (C-02-19) located some 9.5km south of the maiden drillhole that 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.

 

Website: www.galanlithium.com.au

 

Galan Lithium Continuing Drilling at Candelas

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) reported on progress of drilling underway at the company’s Candelas lithium brine project in Argentina.

Galan Lithium informed the market that drillhole (C-02-19) at the Candelas project encountered fractured basement at 632 metres and was completed to a total depth of 662m.

Preliminary field data from a 202m section (from 460 to 662 to the end of hole) returned conductivity levels of a lower order than those the company recorded in C-01-19 but it still expects these to return lithium values albeit at lower levels.

The company’s technical team has interpreted the results to indicate that brines were introduced at depth into the channel from the north with drillhole C-02-19 drilled into a hydrothermally affected area.

Lithium bearing brines lie around the base of the channel in interbedded breccia and conglomerates and infiltrate into fractured bedrock, from which the team has determined hydrothermal activity proximal to C-02-19 may be diluting the aquifer at this location.

“Much has been achieved to date in a short time frame,” Galan Lithium managing director Juan Pablo Vargas de la Vega said in the company’s announcement to the Australian Securities Exchange.

“We are dealing with a unique geological setting for lithium brines and our knowledge of the region increases with the more work we do.

“The lithium potential remains strong for Candelas as it does for our prospective Western tenements at Hombre Muerto.”

 

Website: www.galanlithium.com.au

 

Galan Lithium Claims Argentina Lithium Discovery

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) claimed a new lithium discovery based on results from the first samples taken from the maiden drillhole (C‐01‐19) at the company’s Candelas lithium brine project in Argentina.

Galan Lithium indicated the ongoing drillhole is currently at 354 metres having encountered a substantial intercept of brine from depths of approximately 235m to 354m within coarse clastic sediments to 311m and fractured basement lithologies from 311m to 354m.

The exploration program is being led by the company’s chief geologist, Francisco Lopez, with onsite QA/QC control and technical support provided by Camilo de los Hoyos from SRK Consulting (Argentina) a specialist in hydrogeology and in the exploration of lithium brines.

Hoyos declared the initial results as exceptional, adding they confirm the presence of high‐grade lithium bearing brines within a geological setting unique to the Hombre Muerto salar.

“Preliminary field measurements and laboratory analyses on brine suggests that the Candelas project has the potential to become a world‐class soluble lithium deposit hosted in a unique geological setting,” Hoyos said in Galan Lithium’s announcement to the Australian Securities Exchange.

“Further results from exploration must be assessed step by step to define matrix specific yield and hydraulic conductivity, brine quality and aquifer geometry.”

Acknowledging that the exploration is in its early days, the company said it was greatly encouraged by this initial success and now awaits confirmation of these results from further samples and testing.

Galan will aim to fast track the exploration at Candelas with the goal of targeting a resource as soon as practicable.

Th e current maiden drill program is planned to comprise five holes drilled along the approximate 15-kilometre extent of the Candelas channel.

“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 Lithium managing director Juan Pablo Vargas de la Vega said.

 

Website: www.galanlithium.com.au