The Galan Lithium Ltd (ASX: GLN) share price is storming ahead today.
Galan shares are up nearly 18% at the time of writing, currently fetching $1.495 apiece. However, in earlier trade, Galan shares soared more than 30% to $1.66 each before retreating.
Let's take a look at why Galan shares are exploding today.
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'Amazing' news
Galan Lithium advised today of a "spectacular" increase to its mineral resource estimate at the Hombre Muerto West Project in Argentina.
The new resource estimate has leapt 2.5 times to 5.8 million tonnes of lithium carbonate equivalent (LCE) at 866 milligrams per litre (mg/L) lithium.
Galan said the measured lithium resource at the site is now more than 4.4 million tonnes of LCE at 883 mg/L lithium.
The company entered a trading halt last week ahead of this "significant" resource update.
Commenting on the news, Galan managing director Juan Pablo described the result as "amazing". He added:
Even the Galan team has been amazed by the scale of this updated Resource for Hombre Muerto West.
The outcome is game changing in terms of the step-up in the overall technical and economic potential of this world-class lithium brine asset.
Galan said the project retains its "high grade, low impurity" profile. The revised estimate was completed by the Australian team at SRK Consulting.
A definitive feasibility study is due for completion by the first quarter of 2023.
Share price snapshot
Galan Lithium shares have shed more than 22% year to date, although they have gained nearly 14% in the past month. In the last year, Galan shares have rocketed 34%.
For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 8% in the past year.
Galan Lithium has a market capitalisation of about $461 million based on the current share price.
