The share price for Galan Lithium Limited [ASX:GLN] has fluctuated this morning after the company announced the successful completion of the third round of drilling at the Candelas project in Argentina.
At time of writing, Galan Lithium’s share price is valued at 37 cents per share, down 1.33%.
This follows an exciting week for the Lithium brine explorer, with the included notice that the company has effectively raised $4 million in proceeds through their latest share placement.
What results reveal about Galan Lithium’s share price
It would probably be an understatement to say that the capital raising comes at a particularly good time for Galan. As per the update:
‘The funds raised will enable GLN to continue and expand its maiden drilling campaign along the Candelas channel at the Hombre Muerto Lithium project in Argentina, commence initial resource work and for working capital purposes.’
And, all things considered, GLN will need it. Through their latest drilling measures, GLN have again discovered high conductive brines over 154 metres in hole C-03-19, the third drilling hole of out five.
The results so far seem to replicate the initial geological forecast from the maiden drill, with the field tests showing brines were encountered ‘over ~154m from ~276m to end of hole’, but further sampling is needed before the fourth drill is approved and set to go.
Testing from the second hole revealed a lower grade lithium-bearing aquifer than expected, possibly due to dilution with hydrothermal (heated) water sources.
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One step closer to topping the Lithium Triangle?
The confidence shown in the capital raising is a good indication of the belief many investors have in the entire Hombre Muerto project, and today’s results will likely be less of a surprise and more of a continuation of what investors expect from the Lithium Triangle.
The Candelas region in Argentina is one of the richest sources of high-grade (and low impurity) brine materials, and is home to big name mineral explorers like Galaxy Resources Limited and Korean steelmaker POSCO.
The company has managed a rise in their share price over the last six months and were up 30% this time last week. Good results or not, investors know GLN has a lot of competition in what is an already over-saturated lithium market.
For Money Morning
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