Promising signs for Galan at Candelas


Published 07-MAY-2019 10:38 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free