Galan Lithium has delivered an average grade of 829 milligrams per litre lithium brine in results to a depth of 455m at its Santa Barbara exploration well in Argentina. The results which come from part of the company’s Hombre Muerto West project are at the highest end of lithium brine results achieved so far. Galan says it has the highest grade and lowest impurity lithium brine assets in Argentina and has commenced a fourth production well at its wholly owned project.
At Santa Barbara drilling encountered long intervals of gravel and breccias which has the potential to benefit possible future production by enhancing porosity and permeability. The company says new geophysical studies have confirmed the presence of conductive low resistivity formations indicating brine continuity and upside resource potential.b
Brine samples from the Santa Barbara well were taken by airlift testing over a 72 hour period. Six samples were analysed with lithium brine grades ranging from 795 to 839 mg/l with an average of 829 mg/l lithium.
Galan believes results of two geophysical survey lines that were completed at Santa Barbara indicate brine continuity. Management argues that processing and analysis of the transient electromagnetic survey data in December 2022 gave an improved resolution of the brine reservoir and confidence in locating drill targets in the region. It’s the company’s view that the survey confirms a low resistivity zone in the direction of the salt flat and continuity throughout the alluvial fan with low resistivity meaning higher brine levels.
Galan is updating its reserve model and resource statement for HMW with current resources totalling 1,098,000 tonnes of lithium at a grade of 866mg/l equating to 5,846,000t of lithium carbonate equivalent. Given its fresh status, Santa Barbara does not yet form part of the identified resources. An updated resource and definitive feasibility study for the HMW project are scheduled for completion in the first quarter of 2023.
Drilling is now underway on three new production wells in the existing HMW resource areas. The first new well at Rana de Sal 1 will be drilled to a depth of 380m. The new production wells are set to become part of the long-term production infrastructure at HMW.
Galan Lithium Exploration Manager, Álvaro Henriquez said: “Drilling and geophysical results from Santa Barbara have exceeded expectations in terms of brine chemistry, sedimentary thickness, and permeable lithologies. Brine continuity has also been readily demonstrated through the additional geophysical campaign conducted across those tenements. These overall Santa Barbara results deliver further strong growth potential in previously unexplored areas of our Hombre Muerto West brine deposit.”
Galan is proposing a 20,000 tonne per annum lithium carbonate production facility with a mine life over 40 years. Studies show an EBITDA of US$287 million per annum when full production is achieved in 2025. The company is currently constructing a 4000 tonne per annum lithium carbonate pilot plant facility to guide the larger project parameters.
The company argues that HMW and its nearby Candelas lithium brine project are world class lithium brine projects. Its South American flagship HMW is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. The Hombre Muerto region is also home to established lithium brine operations at Livent Corporation’s El Fenix, Allkem’s Sal de Vida and POSCO’s Sal de Oro.
Galan is confident that significant exploration upside remains given the HMW concessions not included in the current resource estimate. If the results from the first hole at Santa Barbara are anything to go by this confidence is not misplaced.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
