Remarkable Results at Rana de Sal with 1,010mg/l Li - Hombre Muerto Lithium Brine Project, Argentina

ID: 1555254
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(businesspress24) - - 72-hour air lift test sample returned 1,010 mg/l Li over a >330m interval confirming outstanding grade average for drillhole RS-01-19 at Rana de Sal.
- The results are the highest lithium grade reported by Galan on any drill hole at Hombre Muerto.
- Levels of impurity remain very low with Mg/Li averages of 1.70
- Maiden Resource Estimate for the Western Tenements expected Q1 CY2020.

Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce another outstanding lithium assay result from its Rana de Sal tenement. This result confirms previous significant intercepts in drill data of high grade/low impurity lithium bearing brines from the Western Tenement project areas (ASX:GLN releases 11 September, 9 October and 19 December 2019). The Rana de Sal license covers large alluvial fan areas lying adjacent to Livent Corporations (NYSE: LVHM) tenure, covering part of the western margin of the Hombre Muerto salar (Figure 1).

An airlift test of 72 hours was performed retrieving brine from between the intervals of 100m to 433m. This provides an average grade for the drill hole, which encountered mostly sands which make up the brine bearing aquifer. The aquifer is estimated to total approximately 330m in thickness. The next phase of test work will be to more accurately determine the flow rates from the aquifer.

Table 1: Rana de Sal 72 hours air lift lab results

DrillhoSamplFrom To S.G. Cond. Li Mg Mg/Li
le e (m) (m) (mg/(mS/Cm2mg/l mg/l
No. l) )

RS-01-1624 100 433 1.22 >200 1,0101,7121.70
9

The data from Rana de Sal and Pata Pila will be used for the maiden resource estimate of the Western Tenements, which is expected during Q1 CY2020.

Commenting on the Rana de Sal results, Galan Managing Director, Juan Pablo Vargas de la Vega said: We are delighted by these significant Rana de Sal results. On the back of the recent Pata Pila testing, we are very excited as we are now thinking of a potential new project that could be as important as the Candelas project. The results will be reviewed by our team as part of our scoping and pre-feasibility studies shortly after the resource estimate for the Western Tenements is finalised.



Figure 1: Galan Lithium Limiteds Western Basin Projects, Hombre Muerto salar, Argentina
https://www.irw-press.at/prcom/images/messages/2020/49776/20200115 - Rana De Sal announcement FinalPRcom.001.jpeg

For further information contact:

Juan Pablo (JP) Vargas de la Vega
Managing Director, Galan Lithium Limited
Email: jp(at)galanlithium.com.au
Tel: +61 8 9322 6283

Nathan McMahon
Non-Executive Chairman, Galan Lithium Limited
Email: nathan(at)galanlithium.com.au
Tel: +61 8 9322 6283

About Galan

Galan is an ASX listed company exploring for lithium brines within South Americas Lithium Triangle on the Hombre Muerto salar in Argentina. Hombre Muerto is proven to host the highest grade and lowest impurity levels within Argentina and is home to Livent Corporations El Fenix operation and Galaxy Resources and POSCOs Sal de Vida projects. Galans primary target is the adjoining Candelas channel target, a ~15km long by 3-5km wide valley filled channel which project geophysics and drilling have indicated the potential to host a substantial volume of brine and over which a maiden resource estimate has recently been conducted.

Competent Persons Statement

The information contained herein that relates to Exploration Results is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. Dr Milan is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Milan consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.


ANNEXURE 1
JORC CODE, 2012 EDITION - TABLE 1
Section 1 Sampling Techniques and Data
Criteria · JORC Code explanation Commentary
Sampling · Nature and quality of · Drill core was recovered
techniques sampling (eg cut in 1.5 m length core runs
channels, random chips, in core split tubes to
or specific specialised minimize sample
industry standard disturbance. Core
measurement tools recovery was carefully
appropriate to the measured by comparing the
minerals under measured core to the core
investigation, such as runs.
down
· Drill core was
hole gamma sondes, or undertaken along the
handheld XRF entire length of the
instruments, etc). holes to obtain
These examples should representative samples of
not be taken as the stratigraphy and
limiting the broad sediments that host
meaning of brine.
sampling.

· Include reference to · Water/brine samples from
measures taken to target intervals were
ensure sample collected by either the
representivity and the Packer or Bailer tests.
appropriate calibration Bailer tests; purge
of any measurement isolated sections of the
tools or systems hole of all fluid a total
used. of five times to minimize
the possibility of
· Aspects of the contamination by drilling
determination of fluid (fresh water),
mineralisation that are although some
Material to the Public contamination (5-15%) may
Report. occur. The hole is then
allowed time to re-fill
· In cases where with ground water. On the
industry standard fifth purge the sample
work has been done this for lab analysis is
would be relatively collected. The casing
simple (eg reverse lining the hole ensures
circulation drilling contamination with water
was used to obtain 1 m from higher levels in the
samples from which 3 kg borehole is likely
was pulverised to prevented.
produce a 30 g charge
for fire assay). In
other cases more Packer tests utilise a
explanation may be straddle packer device
required, such as where which isolates a discrete
there is coarse gold interval and allows for
that has inherent sampling purely from this
sampling problems. interval. Samples were
Unusual commodities or taken from the relevant
mineralisation types section based upon
(eg submarine nodules) geological logging and
may warrant disclosure conductivity testing of
of detailed water.
information.

· Water/brine samples were
collected from multiple
intervals as listed in
tables 1 and

2.
· Conductivity tests are
taken on site with a
field portable Hanna
Ph/EC/DO
multiparameter.

· Density measurements
were undertaken on site
with a field portable
Atmospheric Mud Balance,
made by OFI testing
equipment.


Drilling · Drill type (eg core, · Diamond drilling with
techniques reverse circulation, internal (triple) tube
open-hole hammer, was used for drilling.
rotary air blast, The drilling produced
auger, Bangka, sonic, core with variable core
etc) and details (eg recovery, associated with
core diameter, triple unconsolidated material.
or standard tube, depth Recovery of the more
of diamond tails, friable sediments was
face-sampling bit or
other type, whether difficult, however core
core is oriented and if recovery by industry
so, by what method, standards was very good.
etc).

· Fresh water is used as
drilling fluid for
lubrication during
drilling.

Drill · Method of recording · Diamond drill core was
sample and assessing core and recovered in 1.5m length
recovery chip sample recoveries intervals in triple
and results (split) tubes.
assessed. Appropriate additives
were used for
· Measures taken to
maximise sample hole stability to maximize
recovery and ensure core recovery. The core
representative nature recoveries were measured
of the from the core and
samples. compared to the length of
each run to calculate the
· Whether a relationship recovery.
exists between sample
recovery and grade and · Brine samples were
whether sample bias may collected over relevant
have occurred due to sections based upon the
preferential loss/gain geology encountered and
of fine/coarse ground water
material. representation.


· Brine quality is not
directly related to core
recovery and is largely
independent of the
quality of core samples.
However, the porosity and
permeability of the
lithologies where samples
are taken is related to
the rate of brine
inflow.

Logging · Whether core and chip · The core is logged by a
samples have been senior geologist and
geologically and contract geologists who
geotechnically logged are overseen by the
to a level of detail to senior geologist who also
support appropriate supervised the taking of
Mineral Resource samples for laboratory
estimation, mining analysis.
studies and
metallurgical
studies. · Logging is both
qualitative and
· Whether logging is quantitative in nature.
qualitative or The relative proportions
quantitative in nature. of different lithologies
Core (or costean, which have a direct
channel, etc) bearing on the overall
photography. porosity, contained and
potentially extractable
· The total length and brine are noted, as are
percentage of the more qualitative
relevant intersections characteristics such as
logged. the sedimentary facies.
Cores are split for
sampling and are
photographed.


· All core was logged by a
geologist

Sub-sampling· If core, whether cut · Bailer sampling:
techniques or sawn and whether Utilises a stainless steel
and sample quarter, half or all hollow 3m-long tube with
preparation core a check valve at the
taken. bottom. The

· If non-core, whether hole was first purged by
riffled, tube extracting a calculated
volume of liquid (brine
sampled, rotary split, and drilling mud) to
etc and whether sampled ensure that sampled brine
wet or corresponds to the
dry. sampled depth. Once the
calculated volume was
· For all sample types, extracted and brine was
the nature, quality and clear, samples were
appropriateness of the collected in plastic
sample preparation bottles and delivered to
technique. the laboratories. The
lower part of the
· Quality control sampling
procedures adopted for
all sub-sampling stages hole section was
to maximise temporarily sealed during
representivity of purging and
samples. sampling.

· Measures taken to · Double packer sampling:
ensure that the Water/brine samples were
sampling is collected by purging
representative of the isolated sections of the
in situ material hole of all fluid in the
collected, including hole, to minimize the
for instance results possibility of
for field contamination by drilling
duplicate/second-half fluid, then allowing the
sampling. hole to re-fill with
ground waters. Samples
· Whether sample sizes were then taken form the
are appropriate to the relevant section.
grain size of the
material being
sampled. · Duplicate sampling is
undertaken for quality
control purposes.


Quality of · The nature, quality · The Alex Stewart
assay data and appropriateness of laboratory located in
and the assaying and Jujuy, Argentina, is used
laboratory laboratory procedures as the primary laboratory
tests used and whether the to conduct the assaying
technique is considered of the brine samples
partial or collected.
total.
· The Alex Stewart
· For geophysical tools, laboratory is ISO 9001
spectrometers, handheld and ISO 14001 certified
XRF instruments, etc, and is specialised in the
the parameters used in chemical analysis of
determining the brines and inorganic
analysis including salts, with considerable
instrument make and experience in this
model, reading times, field.
calibrations factors
applied and their · The SGS laboratory was
derivation, used for secondary check
etc. analyses and is also
certified for ISO 9001
· Nature of quality and ISO
control procedures 14001
adopted (eg standards,
blanks, duplicates, · Core samples will also
external laboratory be sent to a laboratory
checks) and whether for porosity test
acceptable levels of work.
accuracy (ie lack of
bias) and precision
have been
established.

Verification· The verification of · Field duplicates,
of significant standards and blanks are
sampling intersections by either used to monitor potential
and independent or contamination of samples
assaying alternative company and the repeatability of
personnel. analyses.

· The use of twinned · Sub-sample duplicates
holes. are also being
transported to a second
· Documentation of reputable industry
primary data, data standard laboratory in
entry procedures, data country for check
verification, data analysis
storage (physical and
electronic)
protocols.

· Discuss any adjustment
to assay
data.

Location of · Accuracy and quality · The survey locations
data of surveys used to were located using modern
points locate drill holes Garmin handheld GPS with
(collar and down-hole an accuracy of +/- 5m.
surveys), trenches,
mine workings and other
locations used in · The grid System used by
Mineral Resource Quantec: POSGAR 94,
estimation. Argentina Zone
3
· Specification of the
grid system · Topographic control was
used. obtained by handheld GPS,
and the topography is
· Quality and adequacy mostly flat with very
of topographic little
control. relief.

Data · Data spacing for · Water/brine samples were
spacing reporting of collected within isolated
and Exploration sections of the hole
distributio Results. based upon the results of
n geological
· Whether the data logging.
spacing and
distribution is
sufficient to establish
the degree of
geological and grade
continuity appropriate
for the Mineral
Resource and Ore
Reserve estimation
procedure(s) and
classifications
applied.

· Whether sample
compositing has been
applied.

Orientation · Whether the · The brine concentrations
of data in orientation of sampling being explored for
relation achieves unbiased generally occur as
to sampling of possible sub-horizontal layers and
geological structures and the lenses hosted by
structure extent to which this is conglomerate, gravel,
known, considering the sand, salt, silt and/or
deposit clay. Vertical diamond
type. drilling is ideal for
understanding this
· If the relationship horizontal stratigraphy
between the drilling and the nature of the
orientation and the sub-surface brine bearing
orientation of key aquifers
mineralised structures
is considered to have
introduced a sampling
bias, this should be
assessed and reported
if
material.

Sample · The measures taken to · Data was recorded and
security ensure sample processed by trusted
security. employees, consultants
and contractors to the
Company and overseen by
senior management
ensuring the data was not
manipulated or
altered.

· Samples are transported
from the drill site to
secure storage at the
camp on a daily basis.



Audits or · The results of any · No audits or reviews
reviews audits or reviews of have been conducted to
sampling techniques and date. The drilling is at
data. a very early stage
however the Companys
independent consultant
and CP have approved the
procedures to date.

Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral · Type, reference · The Hombre Muerto
tenement name/number, location Lithium Project consists
and land and ownership including of numerous licences
tenure agreements or material located in Catamarca
status issues with third Province, Argentina. The
parties such as joint tenements are owned by
v Blue Sky Lithium Pty Ltd
entures, partnerships, (Blue Sky). The
overriding royalties, Company and Blue Sky
native title interests, executed a Share Sale
historical sites, Agreement whereby Galan
wilderness or national Lithium Limited
park and environmental purchased 100% of the
settings. issued share capital of
Blue
· The security of the Sky.
tenure held at the time
of reporting along with
any known impediments
to obtaining a licence
to

operate in the area.
Exploration · Acknowledgment and · No historical
done by appraisal of exploration has been
other exploration by other undertaking on this
parties parties. licence area. Both
PP-01-19 and RS-01-19
are west of the adjacent
licence area by Livent
Corporations
(NYSE:LVHM), see figure
1.

Geology · Deposit type, · Both the Pata Pila and
geological setting and Rana De
style of Sal
mineralisation. licence areas cover
sections of alluvial
fans located on the
western shore of the
Hombre Muerto salar
proper. The

salar hosts a world-renown
ed
lithium brine deposit. T
he lithium is
sourced
locally from weathered
and altered
felsic
ignimbrites and is
concentrated in brines
hosted
within basin fill
alluvial
sediments
and evaporites.
Drill hole · A summary of all · Drillhole ID: PP-01-19
Information information material to · Easting: 679776.5005 E
the understanding of (WGS84 Zone
the exploration results 19)
including a tabulation
of the following · Northing: 7189763.574
information for all N (WGS84 Zone
Material drill 19)
holes:
· Vertical hole
o easting and northing · Hole Depth: 718m
of the drill hole · Drillhole ID: RS-01-19
collar · Easting: 678684.72 E
(WGS84 Zone
o elevation or RL 19)
(Reduced Level -
elevation above sea · Northing: 7194047.40 N
level in metres) of the (WGS84 Zone
drill hole 19)
collar
· Vertical hole
o dip and azimuth of the · Hole Depth: 474m
hole

o down hole length and
interception
depth

o hole length.
· If the exclusion of
this information is
justified on the basis
that the information is
not Material and this
exclusion does not
detract from the
understanding of the
report, the Competent
Person should clearly
explain why this is the
case.

Data · In reporting · No weighting or cut off
aggregation Exploration Results, grades have been applied
methods weighting averaging to the assay
techniques, maximum results
and/or minimum grade
truncations (eg cutting
of high grades) and
cut-off grades are
usually Material and
should be
stated.

· Where aggregate
intercepts incorporate
short lengths of high
grade results and
longer lengths of low
grade results, the
procedure used for such
aggregation should be
stated and some typical
examples of such
aggregations should be
shown in
detail.

· The assumptions used
for any reporting

of metal equivalent
values should be
clearly
stated.

Relationship· These relationships · It is fairly assumed
between are particularly that the brine layers
mineralisat important in the lie sub-horizontal and,
ion widths reporting of given that the
and Exploration
intercept Results. drillhole is vertical,
lengths that any intercepted
· If the geometry of the thicknesses of brine
mineralisation with layers would be of true
respect to the drill thickness.

hole angle is known, its
nature should be
reported.

· If it is not known and
only the down hole
lengths are reported,
there should be a clear
statement to this
effect (eg down hole
length, true width not
known).

Diagrams · Appropriate maps and · Provided, refer to
sections (with scales) maps, figures and tables
and tabulations of in the
intercepts should be document
included for any
significant discovery
being reported These
should include, but not
be limited to a plan
view of drill hole
collar locations and
appropriate sectional
views.

Balanced · Where comprehensive · These results are from
reporting reporting of all the first
Exploration Results is
not practicable, drillhole at Rana de Sal.
representative · Some assay results are
reporting of both low still pending, all
and high grades and/or preliminary field
widths should be results are provided.
practiced to avoid
misleading reporting of
Exploration
Results.

Other · Other exploration · All meaningful and
substantive data, if meaningful and material information is
exploration material, should be reported
data reported including (but
not limited to):
geological
observations;
geophysical survey
results; geochemical
survey results; bulk
samples - size and
method of treatment;
metallurgical test
results; bulk density,
groundwater,
geotechnical and rock
characteristics;
potential deleterious
or contaminating
substances.

Further work· The nature and scale · SRK are undertaking a
of planned further work maiden resource estimate
(eg; tests for lateral for the Western Basin
extensions or depth project
extensions or areas
large-scale step-out
drilling).

· Diagrams clearly
highlighting the areas
of possible extensions,
including the main
geological
interpretations and
future drilling areas,
provided this
information is not
commercially
sensitive.





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Date: 01/15/2020 - 03:54
Language: English
News-ID 1555254
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