Galan Lithium has added to its Greenbushes footprint in Western Australia with the grant of a new tenement in the state’s south-west.
The new licence joins Galan’s Greenbushes South project in its growing global lithium portfolio.
Located around 260km south of Perth, the E70/4629 exploration licence has been granted for a period of five years to February 2029.
The area covers roughly 43 sq km and expands Galan’s 100%-owned tenement package in the area to a total area of 315 sq km.
Galan has previously developed several active targets at Greenbushes South through soil sampling, airborne geophysics, ground geophysics and field mapping, with more drilling activity planned throughout 2024.
Both tenements lie within close proximity of Talison’s Greenbushes project, the biggest operating lithium mine in the world.
Exploration set to commence
Managing director Juan Pablo Vargas de la Vega said Galan is excited to commence exploration activities on the newly-acquired tenement, utilising a previously acquired dataset of high-resolution radiometric and magnetic geophysical data from an airborne campaign over the area in March 2022.
“The grant of this key exploration licence is an important pillar of Galan’s exploration and evaluation activities at Greenbushes South,” he said.
“The tenure is highly prospective and its geological setting gives us the confidence to commence a maiden field campaign at the earliest opportunity.”
Historic tin workings
Galan has identified historic tin workings in a pegmatite area in the eastern portion of the tenement and this is expected to be its main initial focus.
Tin and tantalum are often associated with lithium-bearing pegmatites and alluvial tins were in play at the Greenbushes mine.
A re-interpretation of historical geophysical data acquired by Galan indicates that the Donnybrook-Bridgetown shear zone extends into E70/4629 and may be responsible for the emplacement of pegmatites.
Initial exploration activities will include geologic mapping, soil sampling and rock chipping, as well as ground geophysical surveys set to commence later this year.
Argentinian lithium focus
Galan is best known for its 100% owned Hombre Muerto West (HMW) phase 1 lithium brine project in Argentina.
The HMW project is being progressed in four production phases.
The company is on target for first lithium chloride production in H1 2025 with a number of key activities recently completed or underway.
In November 2023, Galan signed a phase 1 offtake and financing agreement with Glencore which is looking to purchase technical grade lithium chloride product from the high-grade, low-impurity HMW project.
Upon the satisfactory completion of its due diligence, Glencore has the option to either purchase a lithium chloride product or toll-treat lithium carbonate in Argentina.
The binding agreement is for an initial 5-year period for 100% of Galan’s phase 1 production.
Glencore has also offered to provide or facilitate a financing prepayment facility for between $107 million and $153m.
