Galan Lithium Surges Candelas Resource by 150%, Joins Global Top 10 Lithium Projects

Significant Resource Growth at Candelas

Galan Lithium Limited (ASX: GLN) has delivered a major update to its mineral resource base, announcing a material increase in the JORC (2012) Mineral Resource Estimate (MRE) for its 100% owned Candelas Project in Argentina’s Catamarca Province. The Candelas resource has surged by more than 150%, now standing at 1.6 million tonnes of lithium carbonate equivalent (LCE), a leap that boosts Galan’s total Hombre Muerto West (HMW) resource to 9.5 Mt LCE.

This growth is the result of comprehensive surface mapping, additional geophysical surveys, and a re-modelling of hydrogeological domains by SRK Consulting, which collectively refined the geological understanding and resource boundaries. The updated MRE not only increases the resource size but also enhances confidence in the deposit’s continuity and grade distribution.

Strategic Positioning Among Global Lithium Leaders

With this resource expansion, Galan now ranks within the top 10 lithium production and construction projects worldwide by mineral resource size. This is a remarkable achievement considering the company’s maiden resource was first reported in 2019. The Hombre Muerto basin, already renowned for its lithium brine deposits, continues to prove its status as a critical hub in the global lithium supply chain.

Managing Director Juan Pablo Vargas de la Vega highlighted the value of applying modern exploration techniques and geoscientific expertise to unlock significant resource growth on a modest budget. He emphasized that this milestone strengthens Galan’s commercial optionality and underpins the company’s phased development strategy, which prioritizes the financing and construction of Phase 1 at HMW.

Enhanced Commercial Optionality and Future Growth Potential

The substantial increase in the Candelas resource provides Galan with greater flexibility in commercializing the project. The company is now better positioned to evaluate alternative development pathways, including larger-scale evaporation systems and innovative lithium extraction technologies. In addition, the updated resource model identifies significant upside potential, particularly in the central and southern parts of the Candelas tenements, which remain underexplored.

Galan plans to focus on upgrading the resource classification from Indicated to Measured through further drilling and exploration, aiming to reduce geological uncertainty and enhance project valuation. However, the company will maintain its focus on advancing Phase 1 construction and operations at Hombre Muerto West before committing to capital-intensive activities at Candelas.

Robust Geological and Hydrogeological Modelling

The updated resource estimate benefits from detailed geological mapping, structural analysis, and geophysical surveys that have refined the understanding of the lithium-bearing brine system. The deposit is hosted within a structurally controlled basin with multiple hydrogeological domains, including fine and coarse sediments, agglomerates, and fractured basement rocks. These domains exhibit favorable porosity and permeability characteristics, which are critical for efficient brine extraction.

SRK Consulting applied conservative specific yield values based on core sampling and benchmarking against comparable salars, ensuring a prudent resource estimate. The use of modern geostatistical software and validation techniques further supports the reliability of the updated MRE.

Outlook and Market Implications

Galan’s resource growth at Candelas reinforces its position as a key player in the lithium triangle, a region pivotal to the global energy transition and electric vehicle supply chains. The company’s low-cost, low-carbon footprint lithium brine projects align well with increasing demand for sustainable battery materials.

As Galan advances toward first production expected in 2025, this resource update will likely attract further investor interest and strategic partnerships. The enhanced resource base provides a solid foundation for future phases of development and potential scale-up, positioning Galan to capitalize on the evolving lithium market dynamics.