The latest report from Galan Lithium Ltd [ASX:GLN] has revealed a major success with assays from the first round of brine tests confirming the presence of high-grade lithium. The result was a relief to investors, spurring a 19% rise in the share price.
At time of writing, the current price is sitting at 37 cents per share, still a 17.4% increase from yesterday’s close.
This follows the substantial discovery of brine deposits in the company’s maiden drill at the Candelas lithium-brine project in Argentina last week.
Good initial results but still in early stages
The lithium explorer is hailing the result as ‘exceptional’ — not only because of success so early in the project, but because other in-demand resources like potassium have been found, indicating that other high quality by-products are available for exploration.
Leading geologist Camilo de los Hoyos was equally ebullient about the result, saying:
‘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.’
And while they remain optimistic, Galan acknowledges that further sampling and testing will need to be done in order to make it a solid lithium resource. The drilling programme is set to continue along the Candelas channel, which extends 15km.
Making their mark in the Lithium Triangle
Despite such a quick success in such a short amount of time, it is still early stages as far as the drilling programme is concerned — drilling at the maiden hole (the first of five) is still continuing with no end date in sight.
With this in mind, Galan’s Managing Director today made it clear that they will ‘fast-track’ the process and work ‘full steam ahead’ throughout the channel.
Given its potential as a ‘world-class lithium deposit’, it seems Galan Lithium are hoping to live up to this and make their mark in Argentina’s lithium triangle.
For Money Morning
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