An approval for a program of works is now the only thing preventing Galan Lithium from launching a maiden five-hole diamond drilling program at its newly defined Fry’s Block area, part of its larger Greenbushes South lithium project in WA. The campaign is expected to kick off in January and follows the discovery of three compelling pegmatite targets through fieldwork, geochemical analysis and a geophysical data review.
The project covers a massive ground position of roughly 350 square kilometres and is notably just 3km south of Talison Lithium’s 1.34 million tonne per annum Greenbushes mine - generally considered to be the largest and most renowned hard rock lithium mine in operation today.
Greenbushes has been pumping out lithium since 1983 an recent figures indicate the operation delivered over 360 tonnes of spodumene concentrate over the September quarter this year.
Galan’s Greenbushes South project is located about 200km south of Perth in WA and its tenements are located along the trace of the famous Donnybrook-Bridgetown Shear Zone or the “DBSZ”- the same structure that hosts Talison’s celebrated lithium project.
The looming campaign will aim to test pegmatite targets within the DBSZ structure.
Perth-based Galan originally entered into a joint venture agreement with ASX-listed Lithium Australia to pick up an 80 per cent stake in the project last year.
Over this time Lithium Australia has switched its focus from lithium exploration to the recycling of lithium-ion batteries and the transition has led to a reconfiguration of the deal.
Last week Galan announced it had gained full control of the operation after sealing a $3 million purchase agreement with Lithium Australia for the remaining 20 per cent of Greenbushes South. The transaction includes $2m in cash, $1m worth of Galan shares and the provision of a first right of refusal to Lithium Australia for an offtake of up to 20 per cent of Galan’s share of lithium ferro phosphate from the project.
After gaining complete ownership Galan now looks on course to ramp up exploration drilling at the site through the proposed five-hole diamond program.
Galan Lithium Managing Director, Juan Pablo Vargas de la Vega, said:“We are very excited by the identified opportunity at the newly defined Fry’s Block which follows our extensive fieldwork, geochemical and geophysical data analysis. We now have three highly prospective targets, land access, a drilling contractor and ideal weather conditions ready for our maiden drilling campaign at our fully owned Greenbushes South Lithium Project.”
The Greenbushes South lithium project provides the company with an attractive counterpart to its rapidly progressing Hombre Muerto West or “HMW” brine project in South America’s illustrious “Lithium Triangle”.
The company hopes to commence commercial lithium production at HMW in 2025 and by that time might have the perfect hard rock foil in Greenbushes South.
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