Galan Lithium hikes its lithium resource by 2.5x and shareholders reward it
Nick Sundich, October 25, 2022
Galan Lithium (ASX:GLN) became the latest lithium explorer to unveil an upgraded JORC Resource. But it has been a while since we saw a resource upgrade that was 2.5x higher. And shareholders are excited.
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Galan Lithium has an upgraded resource
Galan Lithium has the Hombre Muerto West Project (HMW) in Argentina. Since making an initial Resource Estimate in early 2020, it has done further exploration work at the project with success. And today it capped off the hard work by unveiling a new Mineral Resource Estimate accounting for its success.
HMW now has a resource of 5.8Mt contained lithium carbonate equivalent (LCE) at 866mg/l lithium. The total Galan Lithium Resource (including its Candelas project that also lies in Argentina) is 6.5Mt at 839mg/l lithium.
So, what is next?
Although Galan Lithium shares are down this year, they have gained ~20% this morning. Shareholders are excited not just about the resource but about the upcoming DFS in the next quarter. And with the booming demand for lithium, investor appetite for the sector is following suit.
Galan Lithium (ASX:GLN) share price chart (Graph: TradingView)
However, we think shareholders should be cautious about the economics of the project. It is located inland, 1400km from Buenos Aires, and is in a high region of the Andes at 4,000m above sea-level. Ultimately, shareholders may not have to worry about this until the Bankable Feasibility Study phase, and for now can just look forward to the DFS.
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