Galan Lithium (ASX: GLN) is set to expand its Hombre Muerto project in Argentina after inking an agreement with TSXV-listed Portofino Resources to purchase Del Condor and Pucara lithium brine assets, which abut the project’s western tenements.
Under a binding heads of agreement, Galan will acquire 100% of Del Condor and Pucara for US$100,000 cash and 650,000 shares.
“This strategic project acquisition by Galan consolidates its Hombre Muerto West project with a continuous line of concessions of about 14km from Catalina to Pata Pila,” Galan managing director Juan Pablo Vargas de la Vega explained.
“This provides Galan with the opportunity to quickly build additional scale to its already significant brine resource and tenure in the region,” he added.
Del Condor and Pucara
According to Galan, Del Condor and Pucara abut the company’s existing Pata Pila and Rana de Sal tenements.
The new tenements comprise two claim blocks totalling 1,804 hectares.
Portofino carried out surface sampling across 18 sites within the tenements and uncovered up to 1,031 milligrams per litre lithium.
Pata Pila and Rana de Sal
Meanwhile, drilling at Galan’s adjacent Pata Pila and Rana de Sal tenements has returned “exceptional” and “remarkable” results in recent months.
In mid-January, Galan reported a 72-hour air lift test sample from Rana de Sal had identified 330m at 1,010mg/l lithium, which is the highest ever assays ever published from the Hombre Muerto project.
The intercept also contained “very low” impurities.
The “remarkable” Rana de Sal result followed the “exceptional” assays from Pata Pila which were reported a few days earlier.
A 72-hour air lift test at Pata Pila produced 670m at 946mg/l lithium.
“On the back of the recent Pata Pila testing, we are very excited as we are now thinking of a potential new project that could be as important as the Candelas project,” Mr Vargas de la Vega said.
Galan is currently firming up a maiden resource for its Western Tenements at Hombre Muerto, which include Rana de Sala and Pata Pila.
The resource is due for release before the end of the current quarter.
This is expected to add to the company’s flagship Candelas project, which has a resource of 685,000t of contained lithium carbonate equivalent.