Lithium wrap: Galan and Anson drilling results get very different reactions from investors
The Candelas lithium brine project in Argentina has returned an “exceptional” intercept of 192m at 802 mg/l lithium in its maiden drillhole, popular lithium explorer Galan (ASX:GLN) says.
Over the past 12 months, the stock has soared from 9.1c to above 60c earlier this month.
But the explorer wasn’t so popular today; down 16.2 per cent to 51.5c (and counting) in morning trade.
Galan also told investors the brine section had increased from the previously announced 166m to 192m.
Low impurities levels were similar “to those observed nearby at Livent’s Fenix and Galaxy Resources’ (ASX:GXY) Sal de Vida operations”, the explorer says.
Galan is now drilling a second hole — currently about 465m deep — about 9.5km to the south.
Meanwhile, US-based explorer Anson Resources (ASX:ASN) says recent drilling has returned 91 per cent higher grades at its Paradox brine project in Utah.
These include 193.5ppm (parts per million) from the Skyline Unit 1 well — a 91 per cent boost on the Cane Creek 32-1 well which has been used for test work to date.
Importantly, flow rates at Skyline Unit 1 were all significantly higher than Cane Creek 32-1.
The increased grade and the higher flow rate at Skyline were expected to have a “significant positive impact” on the economics of the project, Anson chairman Bruce Richardson says.
“The successful reentry of the Skyline Unit 2 well is a further step forward in establishing a JORC resource and fast tracking the Paradox Brine project into production,” he says.
“These improvements [to grade/flow rate] as well as the continued high concentrations of iodine and bromine, which are further potential contributors to the economics of the project, will be considered in the PFS which will be conducted later this year.”
Anson was confident that lithium grades would improve as exploration programs got closer to the high-grade historic assay results recorded at Long Canyon No. 1 (500ppm).
“It is pleasing that this theory is proving correct,” Mr Richardson says.
“This theory will be further tested at Long Canyon No. 2 well where a re-entry program has already commenced.”
The Anson share price—which has ranged between 3.7c and 18.5c over the past year – was up over 5 per cent to 8.3c in morning trade.