Shares in Galan Lithium surge on drill results

By Trevor Hoey. Published at Feb 13, 2019, in Mining

Galan Lithium Ltd (ASX:GLN) has achieved promising results from the first samples taken from its maiden drillhole at the Candelas Lithium Brine Project in Argentina. The results provided substantial share price momentum, as the value of the company increased by approximately $10 million.

Initial assay confirmed, high grade lithium bearing brines with low impurity levels comparable with the high quality brines currently being mined at Salar del Hombre Muerto.

The drillhole (C‐01‐19) successfully encountered a substantial intercept of brine from depths ranging between 235 metres and 354 metres within coarse clastic sediments to 311 metres and fractured basement lithologies from 311 to 354 metres.

Approximately 120 metres of brine was encountered from a depth of 235 metres to the current base of 354 metres.

Investors reacted quickly and positively to the news with the company’s shares hitting a high of 43 cents, representing a gain of approximately 37%.

Early success leads to fast tracking of exploration

Galan is exploring for lithium brines within South America’s Lithium Triangle on the Hombre Muerto salar in Argentina and surroundings.

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.

Galan’s primary target is the adjoining Candelas channel, a basin that is approximately 15 kilometres in length infilled with sediments hosting the brines.

Consequently, a maiden hole hit of this nature is an outstanding result, and perhaps signals that there is further good news pending.

Underlining the significance of these developments and how they will shape the exploration program, Galan’s managing director, Juan Pablo Vargas de la Vega said from his base in Argentina, “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.

“The team is working full steam ahead to advance the programme and we intend to fast track exploration along the 15 kilometre extent of the project”.

Drilling confirms geophysical data

Recent geophysics, and now drilling indicates that it has the potential to host a substantial volume of brine.

The results were described as exceptional in that they confirmed the presence of high grade lithium bearing brines within a geological setting unique to the Hombre Muerto salar.

On this note, SRK Consulting (Argentina) Senior Consultant Geologist Camilo de los Hoyos said, “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.

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

A further bonus is the presence of potassium in volumes high enough to be considered as a by-product in the event that the project progresses to an economic brine deposit.

Where to invest $1,000 right now

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.

Publishers Notice

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.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!