Greenbushes South Drilling Update

Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to provide an update on its extended maiden diamond drilling program at its 100% owned Greenbushes South project in Western Australia, with final assay results validating its exploration model for targets. The Company’s exploration model employed novel geophysical methods for identifying blind pegmatites at depth, and the rock types associated with spodumene mineralisation, and proved to be successful. Whilst drilling to date has not detected any significant lithium mineralisation, the results mean that Galan’s planning for further exploration will be more focused and cost-effective.

• Extended maiden drilling campaign completed at Greenbushes South
• Eight diamond drill holes completed for 3,885 metres
• Pegmatite exploration model validated
• Further drill planning underway

A ground-based geophysical campaign was conducted prior to drilling. The target area, "Fry’s Block”, was selected due to favourable land access, high lithium concentrations in soils, and outcropping pegmatite. Three ground-based geophysical methods were trialled within the Fry’s Block Prospect (see ASX Announcement 1 August 2022). Galan engaged NewGen Geo Pty Ltd to evaluate geophysics applications to detect Li-bearing pegmatites. A short trial program was designed over a known pegmatite occurrence at the Fry’s Block prospect (approximately 600 m x 300 m), which featured easy access to outcropping pegmatites of varying thicknesses (between 5 m and 40 m) and which disappeared under lateritic cover. Ground gravity and resistivity surveys were applied to determine pegmatite locations underneath this lateritic cover. Following the generation of these targets, the Company announced its 2,500-metre drilling campaign (ASX Announcement dated 6 March 2023).

Maiden drill programme extended

Galan completed its planned maiden diamond drilling campaign at Fry’s Block however drilling was extended into a second phase to validate the exploration model provided by the geophysical and drilling results, and furthermore to take advantage of the logistics, mobilisation and continued availability of the drilling team. Phase two drilling included three additional diamond drill holes and a further 1,385 metres of drilling for a total of eight (8) holes and 3,885 metres of drilling. The final assay data set for FDD008 pegmatite intersections have now been received and analysed by the Company.

Approximately 25% of the rock drill core recovered was classified as pegmatite. These pegmatites were characterised by their abundance of megacrystic k-feldspar, albite, tourmaline, and muscovite, all minerals associated with the spodumene-bearing pegmatites at Greenbushes (see Partington et al., 1991). Assay results from pegmatites intersected show a strong fractionation trend well into what would typically be considered a composition that would have the potential to produce Sn (tin) and W (tungsten) mineralisation in granite and, some circumstances, other rare metal mineralisation – this would not be inconsistent with a Lithium-Caesium-Tantalum (LCT) source magma (See Figure 2).

Validation of Galan’s pegmatite exploration model

In general, whilst the pegmatite intersected is not significantly enriched in lithium, caesium, and tantalum to an extent consistent with ‘mineralised’ LCT pegmatites or granite, it does show a trend towards some enrichment in these elements, which, along with some of the above observations, suggests the pegmatite cannot be disregarded as genetically unrelated to the Greenbushes pegmatite at this stage.

Figure 1 - Plan of Drill Hole Collars

Planning for next drill campaign has commenced

After these results, Galan is developing additional targets for its next Greenbushes South drilling campaign. The Company has engaged with primary stakeholders to gain strategic land access in the region. It is pleased to have come to an agreement that will allow for exploration to continue closer to the Donnybrook-Bridgetown Shear Zone. Galan plans to engage with NewGen Geo Pty Ltd to develop another geophysical campaign and a new calibration of the previous drill core data. This will enable the Company to identify the density characteristics of potentially new host rocks and targets and provide further geophysical targeting.

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