Galan Lithium to commence new round of drilling at Hombre Muerto West project
Galan Lithium has announced its highest graded lithium result ever of 1,043mg/l lithium, intercepted during a maiden drilling campaign at its Western Basin projects in Argentina.
Junior explorer Galan Lithium (ASX: GLN) has announced the start of a new drilling campaign at its Hombre Muerto West project in Argentina to confirm and expand current resources and establish maiden reserve estimates.
The move follows the receipt of drilling permits from Secretaria de Estado de Minería – Gobierno de Catamarca, which is the local authority responsible for approving minerals exploration.
The campaign will test the dynamics of brine flow rates and lithium grades necessary to estimate a maiden reserve estimate for use in a definitive feasibility study for Hombre Muerto West.
Preparatory works to access drill sites have already commenced within the Pata Pila and Rana de Sal concessions and rigs and associated equipment have been mobilised.
Boosting resources
Managing director Juan Pablo Vargas de la Vega said new campaign will aim to boost the current low impurity resource of approximately 2.3 million tonnes lithium carbonate equivalent grading 946 milligrams per litre lithium.
“We are pleased to be able to return to the [project site], this time to drill for reserves and test undrilled areas to firm-up and increase resources,” he said.
“We will be aiming to prove that Hombre Muerto West could have a productive well field to support potential production as part of the definitive feasibility study.”
Capital raising
Galan’s new campaign will be funded by a $50 million capital raising designed to accelerate the development of its lithium project suite.
The company last week announced it would offer a two-tranche share placement to institutional, sophisticated and professional investors priced at $1.15 per share.
The first tranche will raise $29.8 million, while the second will raise $20.2 million.
Settlement of both tranches will give Galan a cash balance of approximately $65.1 million before costs.
The proceeds will be used for ongoing exploration at the Hombre Muerto West, Candelas and Greenbushes South projects and will include drilling to convert existing resources to reserves, and the completion of feasibility studies.