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Latin Confirm Lithium Corridor

28 June 2023 14:45
ASX: LRS
LRS Lithium Drill

Hot on the heels of delivering a 241% increase to the Colina Deposit’s lithium resource, Latin Resources have laid the foundation for further growth with the intersection of further spodumene-rich pegmatites confirming the presence of a district-scale lithium corridor across the Salinas Deposit.

Expanding Lithium Horizons

The new intersections come from an extensive extensional drilling campaign being undertaken across the Project to expand the footprint of the Colina Deposit which now hosts a considerable 45.2Mt lithium resource at an average grade of 1.34% Li2O, with spodumene-bearing pegmatites intersected at two locations located along strike from Colina confirming a 26km lithium corridor within Latin’s tenements.

The first significant extension comes from the intersection of pegmatite at a ‘blind’ geophysical target located 560 metres to the southwest of Colina aptly named Colina South West, with three of four holes complete so far showing course-grained spodumene-rich pegmatites with drill cores showing up to 29.86m of visible spodumene pegmatite mineralisation.

Drilling is also underway at the Fog’s Block tenement, located 12km southwest of Colina, where spodumene-bearing pegmatite has already been intersected, with 29.86m of spodumene pegmatite mineralisation being observed in the first and as yet only completed hole and 39.34m of mineralisation observed in the second currently underway hole.

Mapping of outcropping pegmatite 6km to the southwest of Colina has also identified another pegmatite occurrence within the corridor that it plans to follow up on in the near future.

Compelling Corridor

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Figure 1: Colina Deposit plan, showing general location and examples of intersected drill core and outcrop samples of the Colina SW Target, Fog’s Block Target, and Salinas South Target and untested pegmatite outcrop in relation to the Colina Deposit

Colina has now exceeded Latin’s original expectations, with the Deposits’ footprint now expanded well over 2km and contributing to the district-scale corridor, the Deposit to the Salinas south target is located 26 kilometres to the southwest, which hosts a high tenor lithium in soil anomaly.

While the Company is still waiting for assays from the currently underway campaign, these early signs are very encouraging and offer the explorer compelling avenues to upgrade the Project’s resources even further.

A total of eight rigs remain on-site drilling into the Project’s pegmatite potential with systematic step-out drilling and selective deeper drilling underway at Colina to test both the southwestern extensions and investigate the thick, high-grade intersections observed in previous drilling, and a 4,000m campaign underway across both Colina South West and Fog’s Block.

LRS is also planning further exploration to identify additional targets within the Colina mineralised corridor through systematic mapping, sampling, and diamond drilling and is also planning to kick off drill testing of the Li–in–Soil anomaly at Salinas South.

Looking Ahead

As expansion drilling continues, the explorer is taking steps to prepare this promising project for development, with the explorer on track to deliver the Project pre-feasibility study later this year. Drilling is now working to convert existing resources to reserves, which will serve as the foundation for a Definitive Feasibility Study (DFS) due next year.

Drilling at Colina will also provide materials for further metallurgical testwork to inform the DFS studies, with previous work from the site showing exceptional average lithium recovery rates exceeding 80 per cent.

Latin will be well supported and funded to move the Project into the next phase, with the Company raising $AUD37.1 million dollars to accelerate Salina’s development and securing the support of the Brazilian government through its Lithium Valley Brazil Initiative, which seeks to foster significant increases in the production of high-purity, battery-grade lithium by streamlining the development and construction of projects in the lithium industry.

The Company said that the latest results provide it with a clear pathway for future development.

“These are significant new discoveries by the Salinas exploration team, demonstrating our strong understanding of the regional controls to mineralisation within our district. These latest drilling intersections validate our regional interpretation of a large, mineralised pegmatite system potentially extending up to 26 km to the southwest of our flagship Colina Deposit,” Vice President of Operations – America’s Tony Greenaway said.

“While these early drill core observations are extremely encouraging, we are still waiting for assay results and need to fully evaluate this information within the context of all our drilling results to fully understand the larger regional system. We will continue to drill test these newly identified areas in parallel with the ongoing infill and systematic step-out drilling at Colina itself, with the aim of growing the existing 45 Mt resource base at Colina.”

LRS’s Australian Stock Exchange-listed share price has risen 20.40 per cent today, currently selling at 29.5c (1:01 pm UTC+ 8 hours).

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