The Galan Lithium Ltd (ASX: GLN) share price has been enjoying a day in the green today.
In early trade, this ASX lithium share surged 7% to $2.29 before pulling back to the current share price of $2.17. This is 1.4% higher than yesterday’s close. In contrast, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.53% today.
Let’s take a look at what might be driving the Galan Lithium share price today.
Lithium drilling result
Galan reported “drilling success” at the company’s Hombre Muerto West lithium project in Catamarca Province, Argentina. The announcement before market open saw the Galan Lithium share price shoot up in the first hour of trading.
The company revealed it has completed the first diamond drill hole, known as PP-02-22, at the project. Drilling at the site, within the Pata Pila licence area, reached a depth of 450m.
Galan said the result extends the lithium brine potential an additional 800m from existing drill hole PP-01-19 to within 1km of the adjacent Livent tenement boundary.
The results will be included in the company’s project mineral resource update, due for completion in the third quarter of 2022.
Commenting on the results which appear to have spurred the Galan Lithium share price, managing director Juan Pablo Vargas de la Vega said:
This exploration diamond hole has further unlocked the potential of the world-class lithium brine resource held at the HMW Project.
The results have enhanced our hydrogeological modelling, a key to confirmation of Reserve estimates, and delivered further Mineral Resource upside at HMW.
Following the new exploration target areas identified by the recent TEM geophysical survey, we now look forward to aggressively drilling these additional potential HMW Mineral Resource expansion zones from this quarter through the rest of 2022.
Galan also advised it has filled the pilot plant S1 pond with brine. Evaporation testing is ready to start soon. The company said this is a “major milestone” marking the start of large-scale piloting activities at the project.
Galan Lithium share price snapshot
The Galan Lithium share price has exploded almost 240% in the past year while it is climbing nearly 11% year to date.
For perspective, the benchmark ASX index returned nearly 8% in the past year.
Galan Lithium has a market capitalisation of about $657 million.
The post Here’s why the Galan Lithium share price is defying today’s ASX sell-off appeared first on The Motley Fool Australia.
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More reading
- What’s boosting the Galan Lithium (ASX:GLN) share price today?
- ‘We are excited’: Why these 2 ASX lithium shares are popping today
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.
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