Galan Lithium (ASX: GLN) has scooped up more prospective land at its Hombre Muerto West lithium brine project in Argentina, with the acquisition of the Deceo III tenement.
The company acquired 100% of Deceo III for US$30,000, with the rationale for the acquisition being it will boost global resources on the Hombre Muerto salar which currently sit at 1.77 million tonnes of contained lithium carbonate equivalent at 837 milligrams per litre of lithium.
Deceo III is also located next to the Pata Pila tenement within Galan’s Hombre Muerto West project which hosts high-grade inferred resource of 1.08Mt at 946mg/l lithium.
According to Galan, Deceo III is only 100m east of the 719m drill hole used in the Hombre Muerto West maiden resource.
Galan’s theory is the high-grade Pata Pila lithium mineralisation could extend through to Deceo III.
“This strategic 100% project acquisition by Galan evidences our intentions to consolidate a significant continuous ground holding (currently about 14km) at Hombre Muerto West,” Galan managing director JP Vargas de la Vega said.
“Moreover, we are of the conviction that Candelas and Hombre Muerto West could become low-cost, profitable lithium producing projects, even at today’s lithium prices.”
“Both of these 100% owned Galan projects have a solid resource base of high-grade lithium and low impurity levels in the best-known producing region in Argentina,” Mr Vargas de la Vega said.
He added that despite the current COVID-19 constraints the company was continuing to advance the conceptual models for its scoping and pre-feasibility studies.
The company has also begun preparing for additional test work on processing its brine into a battery grade lithium carbonate once restrictions have been lifted.
“We are confident Deceo III will increase our lithium inventory given our previous work and the short distance to the drill hole Galan completed at Pata Pila,” Mr Vargas de la Vega added.
Hombre Muerto salar tenements
Galan debuted its maiden resource for the Hombre Muerto West tenements in March.
The 1.08Mt high-grade resource added to the company’s more advanced Candelas project within the Hombre Muerto salar, which hosts 684,850t of contained lithium carbonate.
Galan is reviewing the synergies between the projects to firm up a large operation on the salar, which is also home to lithium producer Livent and lithium developers POSCO and Galaxy Resources (ASX: GXY).