Galan Lithium (ASX: GLN) has uncovered a 192m intersection grading 802 milligrams per litre of lithium from a maiden drill hole at its Candelas project in Argentina.
This latest result follows on from preliminary assays released last month that revealed a partial intercept of 65m at 862mg/l from 235m.
Data now shows the lithium brine intercept to extend from 205m to 397m with an overall grade of 802mg/l lithium, 2,224mg/l magnesium, 577mg/l boron, and 8,219mg/l potassium.
Additionally, magnesium and sulphate impurities were low and according to Galan are in line with Galaxy Resources (ASX: GXY) and Livent’s Fenix nearby operations.
Meanwhile, a second drill hole is underway about 9.5km from the initial drill hole and has reached 465m.
Galan has noted to-date that geology in the second hole is similar to that observed in the maiden drill hole.
The company is working “full steam ahead” to advance its exploration program at Candelas.
Previously, Galan managing director Juan Pablo Vargas de la Vega said the fast-tracked exploration would cover the 15km extent of the project.
The current drilling program will total five holes across the 15km, with the maiden drill hole kicked-off in early February.
Falling lithium prices have tapered off, with long-term views for the market remaining bullish.
The Australian Government Office of Chief Economist’s report Resources and Energy Quarterly (December edition) anticipates the current oversupply situation will remain in the near-term, but demand will again outstrip supply after 2020 – caused by the wider adoption of electric vehicles worldwide.
The report anticipates the lithium market will come under “significant pressure” from 2022.
Benchmark Mineral Intelligence managing director Simon Moores told the US senate recently that the world was in the “midst of a global battery arms race”.
“The advent of electric vehicles and energy storage has sparked a wave of battery mega-factories that are being built around the world,” Mr Moores said.
After reaching a high of $0.65 this morning – up more than 5% on the previous close of $0.615, Galan’s share price dipped 8% to settle at $0.565 in early afternoon trade.