Galan Lithium (ASX:GLN) has finally hit paydirt at its Candelas lithium project in Argentina.

Drill hole number three went to a depth of 430 metres, and the company said good things started happening at the 276m mark.

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Beyond that point, brine levels showed conductivity levels which exceeded the range of its field testing instrument.

Shares in Galan were up more than 10 per cent this morning at 41.5 cents, down from an annual high above 60 cents reached in early March.

Dead Man’s ridge

Galan’s lithium brine project is based in the Hombre Muerto (translation: dead man) region of Argentina.

The company says the geological sequence in the third drill hole is similar drill hole 1 — a successful exploration which formed the catalyst for some of the gain in Galan’s share price.

However, drill hole two failed to replicate the success of its predecessor, which sparked a rollercoaster ride for Galan shareholders in the middle of last month.

In addition to the high conductivity levels, Galan said drill hole three also returned strong Specific Gravity (SG) readings, ranging from 1.11 to 1.20 grams per cubic centimetre.

“These preliminary samples have been sent to the laboratory for analysis with results expected next week,” the company said.

Galan will now carry out downhole geophysical logging and take further brine samples in drill hole three, before moving to a new location to start on number four.

Galan has regulatory permission to drill five holes in the area, and has applied for approval to carry out further drilling beyond that initial quota.

In other ASX battery metals news today

Lithium player Anson Resources (ASX: ASN) has raised some money to finance the production of lithium carbonate from its Paradox Brine project in Utah, USA. The company announced that its completed a $1.65 million placement from strategic investor Chia Tai Xingye International, which purchased 27,500,000 fully paid ordinary shares at an 6 cents per share — a discount to the current price. The company also wants to raise up to $3 million from retail investors at the same issue price. Eligible shareholders will be given the opportunity to buy up to $15,000 in ASN stock. Shares in Anson were down more than 8 per cent in morning trade at 6.4 cents.

Renascor Resources (ASX: RNU) has also been raising money, confirming that it’s received in-principle project finance support from the Dutch government for its Siviour graphite project in South Australia’s Eyre Peninsula. A subsidiary of the Netherlands government will now conduct further due diligence, with the finance contribution expected to cover around 60 per cent of capital expenditure at the mine. Shares in Renascor were up more than five per cent in morning trade at 2 cents.

And Talga Resources (ASX: TLG) has announced some positive results from pilot rounds of metallurgical testing at its graphite ore project in Vittangi, Sweden. The programs revealed “high recoveries, purities and anode material yields using industry standard crush-grind-flotation equipment. This new processing pathway potentially offers enhanced project economics, including lower capital and operational costs,” the company said. Shares in Talga were up 3 per cent at 65 cents.