The past six months has seen the value of Galan Lithium Ltd [ASX: GLN] continue to surge. The last months has seen prices almost double.
But while many Victorians where enjoying yesterday’s long weekend, Galan Lithium’s share price plummeted 19.51%.
This was most likely due to a price query, dated 4 March 2019, over the increase of GLN securities being traded in this time — which ultimately resulted in a voluntary suspension request, which is now waiting on reinstatement to official Quotation.
At the time of writing, Galan Lithium’s share price is trading at 48 cents, down a further 15.15%
Drilling update overshadowed by Galan Lithium’s share prices
Yesterday GLN announced a drilling update of its Candelas Lithium Brine project, located in Hombre Muerto, Argentina.
Geophysical profiling of its maiden drillhole (C-01-19) indicates brine occurred at 200m as well as carrying to 401m to the bottom of the hole.
Brine mining is the process of extracting elements or compounds, such as lithium which naturally dissolve in brine.
Drillhole C-01-19 samples showed values within acceptable ranges, as well as slightly higher than initial sample results, in its second check analysis in laboratory SGS Argentina. Overall, sampling results showed higher grades.
The results of drillhole C-01-19, is also showing positive signs for another of GLN’s drillhole (C-02-19), which largely replicates C-01-19 site.
Investors should note that as development at this drillhole picks up, we could see increases to Galan Lithium’s share price.
Galan Lithium’s 2019 outlook
Knowing exactly where a stock — a mining stock in particular — is heading, is difficult. So investors will have to wait on further drillhole sampling, to see whether Galan can reignite its momentum.
And if momentum is anything to go off, despite yesterday’s dip, investors should keep an eye on Galan Lithium’s shares at the very least.
Shareholders will be pleased to know that the trading halt placed on Galan Lithium will be lifted immediately upon the release of their next announcement.
In the meantime, patients is needed.
For Money Morning