Galan Lithium Ltd is a lithium exploration company with the rights to earn 100% interests in projects located in the world class Lithium Triangle region in Argentina.

Projects located in the Hombre Muerto Salt flat, adjacent to Galaxy Resources (mkt cap; A$830m) and Livent Corporation (ex-FMC Corp., NYSE listed)  (mkt cap; ~US$2.6bn). POSCO (mkt cap. A$27bn) is a new entrant subject to part sale of GXY’s Sal de Vida project.

The Hombre Muerto Salar is the premier lithium brine basin in Argentina – high grade, low impurities, (Li:Mg <4) with Livent’s El Fenix operation has been in production for over 20 years.

Targeting fast tracking to exploration with a potential resource estimate targeted for Q3 2019, following the successful maiden drilling campaign by Galan whereby substantial high grade, low impurity lithium bearing brine were discovered.

Location

•   Six project areas totalling ~ 25,000 Ha of landholdings
•   Potential brine areas conservatively comprise ~7,800Ha
•   Rich setting for lithium brine development
      •  ground waters sourcing volcanic rocks
      •  hydrothermal activity
      •  closed basin
      •  arid climate
      •  faulted environment
•   Candelas project main focus of exploration
•   Other targets lie within the Western Basin; Catalina, PataPila, Rana de Sal,    Catalina & Deceo

Candelas

•Encompasses the 15km x 3-4km Los Patos channel

•Extensive exploration potential, adjacent to Galaxy’s Sal de Vida project (1.14 Mt LCE Reserve)

•Sufficient area for evaporation ponds, processing infrastructure & great fresh, process water

•Rio Los Patos accounts for ~79% of incoming waters into the salar which drain likely Li source rocks from the Cerro Galan volcano (associated fumaroles noted in the delta)

Geophysics

• CSAMT (Controlled Source Audio-frequency Magnetotellurics) survey recently conducted by QuantecGeoscience Ltd
•  Survey covered ~10km over 5 profile lines
•  Profiles interpreted to contain “…very conductive and shallow units that are compatible with units being saturated with brine…” (Quantec)(ASX:DMI 6 June 2018)
•  Interpreted brine layers range from ~150-400m+ thickness over entire extent of the survey

•  Interpreted brine layers remain open to the west
•  Gravity survey also conducted at the same time
•  Survey covered the ~15km over 8 profile lines
•  Profiles interpreted a deep basin-channel environment with depths of up to 600m
•  Interpretation supports CSMAT findings of a large, deep channel hosting significant brine layers
•  Follow up geophysics extending lines to commence in August

Drilling

•  Maiden diamond drilling programme commences in late January 2019 at Candelas

•  Initial assays confirm thick, high-grade lithium bearing brines

•  Maiden partial intercept received of 65 metres at an average of 862 ppm Li from 235m to 300m and still in brines

•  Low impurity levels with an Mg/Li ration<3 – comparable with high quality brines currently being mined at Salar del Hombre Muerto

•  Basement lithologies encountered at 311 metres. However, flowing brine continues to be observed within the fractured rock to at least 354 metres

•  Sediment package hosting brines includes perfect permeable hosts; coarse sands/gravels and breccia-conglomerate

These initial results are exceptional, confirming the presence of high-grade lithium bearing brines within a geological setting unique to the Hombre Muerto salar.  SRK Consulting, who are the independent consultants overseeing QA/QC controls over the project, stated that; “Preliminary field measurements and laboratory analyses on brine suggests that the Candelas Project has the potential to become a world-class soluble lithium deposit hosted in a unique geological setting.  Further results from exploration must be assessed step by step to define matrix specific yield and hydraulic conductivity, brine quality and aquifer geometry”

Western Basin Projects

•  Several areas covering margins of the Hombre Muerto salar,  includes potential alluvial fan covered salar targets
•  Recent resistivity surveys completed over 4 new targets at Hombre Muerto salar
•  Initial near surface water sampling is highly encouraging, serval samples >1,000 mg/l Li
•  Follow up CSAMT resistivity survey confirms “very conductive and shallow horizons that are consistent with geological units saturated with brine”
•  Resistivity values from the targets which lie adjacent to Livent’s operations, are similar to Candelas – positive implications for lithium grade potential

Argentina

  • In 2015 Mauricio Macri was elected President and has championed the opening up of the Argentinian economy to international investment
  • The fixed exchange rate between the US$ and Argentinian Peso has been dropped and capital controls are no longer in place
  • The majority of export duties and trade controls have been removed. Consistent Royalty regime for all minerals across most of the country introduced in 2017
  • FMC, a US based company, has been successfully producing lithium carbonate and lithium hydroxide in Argentina for more than 20 years
  • Results from the recent 2017 regional elections have shown that the electorate continues to support Macri’s party and its progressive government policies