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- Galan Lithium (GLN) spent the September quarter focused on its Argentinian projects
- The company conducted feasibility activities and drilling at the Hombre Muerto West project to support reserve estimates
- It has also been progressing scoping studies at the nearby Candelas project which began in July and showed initial results of up to 6 per cent lithium
- GLN also completed what it described as a ‘game-changing’ $50 million placement which improved its cash position to about $42.2 million at the end of the quarter
- Shares in Galan Lithium were down 4.2 per cent to $1.26 at 11:54 am AEDT
Galan Lithium (GLN) has delivered its quarterly report for the three months ending September 30, 2021.
The company’s main focus during the period was ongoing feasibility work and the next round of drilling at its Hombre Muerto West (HMW) project in Argentina.
To prepare reserve estimates at the project, GLN rounded off the September quarter by completing the first bore hole at Pata Pila. The hole was completed to a 20-metre depth and has now been cased and cleaned. This hole was drilled to conduct pumping tests to help build the hydrogeological models needed for the reserve estimates.
A seismic survey is planned to complement the drill hole lithology logs to produce models of the stratigraphy and to maximise the quality of the resource and reserve estimations.
Galan is also in the advanced stages of awarding the engineering component of feasibility studies for HMW.
Another focus of the quarter was progressing scoping studies at the Candelas project which neighbours the HMW project in the South American Lithium Triangle.
The scoping study began in July and was based on the brine concentrate modelling which showed results of up to 6 per cent lithium. Galan’s in-house engineering team is undertaking the study which is expected to be finalised before the end of this year.
In August, Galan completed what described as a ‘game-changing’ placement which raised $50 million.
The two-tranche placement was aimed at accelerating the development of Galan’s lithium projects in Argentina and Western Australia.
In terms of cashflow, the company used $415,000 on operating activities and $1.02 million on investing activities.
Galan ended the quarter with $42.2 million in cash — a significant rise from the $15.5 million it started the period with.
Shares in Galan Lithium were down 4.2 per cent to $1.26 at 11:54 am AEDT.
