Galan Lithium to survey shallow brines at Argentine lithium project
22:47 19 Aug 2018
The company is exploring for lithium in an area with proven substantial resources.
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Galan's Salar project is in Argentina's lithium triangle region
Galan Lithium Ltd (ASX:GLN) has begun a new round of geophysical surveys aimed at extending brine units at its Salar de Hombre Muerto Lithium Project in Argentina’s Catamarca Province.
This work will consist of controlled source audio-frequency magnetotellurics (CSAMT) resistivity surveys which will add to the results of earlier surveys conducted along the Candelas channel.
Salar is in the world-class ‘lithium triangle’ region of Argentina, adjacent to projects operated by Galaxy Resources Ltd (ASX:GXY) and FMC Lithium Corp (NYSE:FMC). Surveys to extend brine mineralisation
Galan has contracted Quantec Geoscience Ltd to undertake the surveys, which will potentially extend conductive and shallow units compatible with brine saturation identified in earlier survey work.
Several maiden lines of CSAMT will also be conducted over Galan’s other Western Basin leases where recent work has highlighted highly lithium-anomalous surface samples.
Quantec has also undertaken drilling for Galaxy near the Candelas channel, indicating substantial volumes of brine hosted by coarse sands and gravel.
Recent surface sampling to the north of Galan’s project area returned results similar to that obtained by Galaxy, assaying around 50-60 ppm lithium.
Quantec is scheduled to begin work in around 7-10 days.
http://www.*.com/upload/CKEditor/Galan%20surveys.jpg Proposed new CSAMT survey lines along the Candelas channel Investment into the region
Galan remains confident in the potential long-term strength of the lithium sector, as well as Argentina’s mining-friendly status, considering the scale of investments in the surrounding Hombre Muerto region.
Earlier this month Galaxy Resources announced its POSCO transaction was ahead of schedule, which involves a US$450 million investment to develop Galaxy’s Sal de Vida project at Hombre Muerto.
Overall this could result in around US$900 million of total capital investment in Sal de Vida.
On August 15, Ganfeng Lithium signed a supply agreement with Korea’s LG Chem Ltd to supply 47,600 tonnes of the battery material.
Ganfeng has also agreed to purchase SQM’s (NYSE:SQM) interest in the Cauchari-Olaroz project, further establishing its position in Argentina’s lithium space. Potentially large lithium resource
Initial surveys delineated relatively shallow brine depths which ranged from around 150 to 400-plusmetres in thicknesses, over at least ten kilometres along the Candelas channel.
Gravity surveys were also conducted, covering around 15 square kilometres over 8 profile lines, and interpreted brine layers which remain open to the west.
The profiles indicate a deep basin-channel environment with depths of up to 600 metres.
Galan holds six licence areas within the Hombre Muerto project, comprising around 25,000 hectares.
A conservative estimate of potential brine areas is around 6,900 hectares.
Candelas is the main focus of exploration but the company has identified other targets within the Western Basin; Catalina, PataPila, Rana de Sal and Deceo.
Galan believes the project area is a rich setting for lithium brine development, with hydrothermal activity, a closed basin, arid climate, faulted environment and ground waters sourcing volcanic rocks.
GLN Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
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