Promising signs for Galan at Candelas
Field measurements released by Galan Lithium Ltd (ASX:GLN) indicate that the upper levels of a brine bearing aquifer have been encountered in the fifth drillhole (C-05-19) at the Candelas Lithium Brine Project on the Hombre Muerto salar in Argentina.
Galan is exploring for lithium brines in highly prospective territory of South America, an area known as the Lithium Triangle.
Hombre Muerto is proven to host the highest grade and lowest impurity levels within Argentina and is home to Livent Corporation’s El Fenix operation and Galaxy Resources and POSCO’s Sal de Vida projects.
The fifth drillhole is approximately 2.4 kilometres south-west of the maiden drillhole which returned excellent metrics of 192 metres at 802 mg/l lithium.
Further, it is only 1.8 kilometres west of the third drillhole (C-03-19) which featured 143 metres at 784 mg/l lithium with low impurities.
Positive implications for broader Candelas project
Importantly, the geological sequence largely replicates that observed in the other drillholes.
The hole 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 280 metres to 320 metres exceeded the 200 millisiemens/cm limits of the field recording instrument whilst high specific gravity was recorded at 1.195 grams per cubic centimetre.
Highlighting the significance of these results in terms of the broader project, Galan’s managing director, Juan Pablo Vargas de la Vega said, “The discovery of further brines confirms that there is consistent brine coverage over a large area in this northern part of the Candelas channel.
“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”.
Drilling is currently at 330 metres, and the fact that it is still in brine is encouraging in terms of ongoing exploration updates.
Consequently, there could be a run of newsflow similar to that which prompted a three-fold increase in the company’s share price between December 2018 and March.
Once complete, downhole geophysical logging will be conducted, and further packer tests performed to collect samples for analyses.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.