The Galan Lithium Ltd (ASX:GLN) share price is rocketing higher on Monday morning following the release of a positive update…
The post Why the Galan Lithium (ASX:GLN) share price is rocketing 19% higher today appeared first on The Motley Fool Australia. –
The Galan Lithium Ltd (ASX: GLN) share price has been a strong performer on Monday.
In late morning trade, the lithium focused mineral exploration company’s shares are up 14% to 53.5 cents.
At one stage today, the Galan Lithium share price was up as much as 19% to 56 cents.
Why is the Galan Lithium share price surging higher?
Investors have been buying Galan Lithium shares on Monday after it announced laboratory test work results for its low carbon footprint brine evaporation process at its flagship Hombre Muerto West (HMW) project located in the South American Lithium Triangle in Catamarca, Argentina.
According to the release, HMW’s lithium chloride (LiCl) concentrate increases significantly by 25% to 6% Li from the original study value of 4.8% Li using the process.
This means its high grade result is directly comparable to those of mining giants SQM and Albemarle from the Atacama basin in Chile.
Galan’s Managing Director, Juan Pablo Vargas de la Vega, commented: “Grade is always king. These results are better than we envisaged and have more than solidified the serious potential of the Hombre Muerto West project.”
“We have always followed the mantra of ‘walking before running’ and these results, whilst taking time to achieve, have affirmed our step by step approach of utilising proven technology with low risk in processing. Our teams in Argentina and Chile have been brilliant during these uncertain times and continue to deliver these essential Project steps,” he added.
What’s next for Galan Lithium?
Galan Lithium is continuing to test and optimise a range of lithium chloride concentrate solutions, with conversion costs in mind, to deliver the best commercial solution in the shortest time possible.
Management expects to commence commissioning the evaporation pilot test work on site during the second quarter of 2021.
It also advised that it is reviewing the scope of work for the most adequate path to accelerating the project development (lowest capex and shortest time) to market. Positively, it believes the high quality of the concentrated LiCl could be a mayor strategic differentiation for improving the economic performance of the project.
The Galan Lithium share price is up over 200% over the last 12 months.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.