A week after reporting it had uncovered “substantial” brine at its Argentinian project, Galan Lithium (ASX: GLN) has confirmed the brines contain high-grade lithium.
Initial assays from the maiden drill hole at Galan’s Candelas project in Argentina returned a partial intercept of 65m at 862 milligrams per litre of lithium from 235m. The 65m lithium brine interval was within an entire brine intercept of 119m.
Additionally, test work has indicated the lithium brine has low impurity levels and is comparable with nearby “high-quality brines” currently mined at Salar del Hombre Muerto.
“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,” SRK Consulting (Argentina) senior consultant geologist Camilo de los Hoyos explained.
“Further results from exploration must be assessed step by step to define matrix specific yield and hydraulic conductivity, brine quality and aquifer geometry,” Mr de los Hoyos added.
As well as the lithium content, Galan noted the potassium in the brine was high enough to be considered a by-product if ongoing exploration confirmed Candelas as an economic deposit.
Potassium levels in the brine ranged from 1,576mg/l to 8,067mg/l, with up to 601mg/l boron and 2,376mg/l magnesium also found.
‘Full steam ahead’
Galan’s managing director Juan Pablo Vargas de la Vega said the company was now working “full steam ahead” to advance the current exploration program at Candelas.
“We intend to fast track exploration along the 15km extent of the project,” he added.
Drilling at the project is still encountering flowing brines and the company is yet to make a decision to end the hole.
However, once the hole has been completed, Galan will carry out downhole geophysical profiling and then case the hole to allow it to settle and the collection of further brine samples.
All up, the maiden drilling program will include five holes across the 15km of strike at the project.
This morning’s news pushed Galan’s share price up more than 17% to hover at $0.37 mid-morning.