Galan Lithium Ltd (ASX: GLN) shares have been soaring lately, surging by 50% over the past month.
On 18 March, Galan Lithium entered a trading halt. At the time, the company’s shares were swapping hands at 47 cents each. By today’s market close, the Galan share price was trading at 73.5 cents after having risen 6.5% today.
So, what’s been driving the Galan Lithium share price since 18 March? Let’s take a look.
Lithium, lithium and more lithium
Galan Lithium broke its trading halt on 22 March with exciting news, leading its share price to close 12.8% higher than the previous session.
Just prior to the market’s open on 22 March, the company announced test results had found the brine evaporation process at its Hombre Muerto West (HMW) project was capable of producing 25% more lithium than was previously predicted.
According to the release, HMW’s lithium chloride concentrate increased to 6% lithium. This represented a significant increase from the original measure of the process which found 4.8% lithium.
HMW is located in Argentina, in the area known as the South America Lithium Triangle. The HMW project has a low carbon footprint with comparable results to other lithium miners in the area.
Galan Lithium stated it’s still running tests to optimise lithium chloride solutions to deliver the best chemical solution in the shortest amount of time.
What else has been happening for Galan?
After the HMW news in March, we hadn’t heard anything more from Galan.
That was until this morning when the company announced it had finished a review of historical CSIRO data and had found improved prospects at its Greenbushes South Lithium Project.
A CSIRO study from 1987 defined geochemical anomalies with the laterite soils across the Greenbushes region. Galan Lithium stated this study confirms the feasibility to explore for a concealed deposit of mineralised Li-Sn-Ta pegmatites – a rock type that may host spodumene.
Now, Galan is repeating some of the soil sampling done in the original study to validate the results and plan its next move at the project.
The Greenbushes South Lithium Project is located around 3 kilometres south of the Greenbushes Lithium Mine. The Greenbushes Lithium Mine is the largest hard-rock lithium mine in the world.
Galan Lithium share price snapshot
Galan Lithium is having a cracking time on the ASX this year. At the time of writing, the company’s share price is around 90% higher than it was at the beginning of 2021.
It’s also up by almost 360% over the last 12 months.
The company has a market capitalisation of around $165 million, with approximately 240 million shares outstanding.