Latin Resources Announces 56% Increase in Global Resource at Salinas Lithium Project

6 December 2023 13:45

Latin Resources Limited (ASX:LRS) has announced a significant 56% increase in the Mineral Resource Estimate (MRE) at its Salinas Lithium Project in Brazil, reaching a total of 70.3 million tonnes with a high grade of 1.27% lithium oxide (Li2O), driven by a substantial 41% expansion in the Colina Deposit MRE and the maiden JORC resource at Fog’s Block.


Figure 1: Location Plan showing Colina Deposit, the newly defined Fog’s Block Deposit and the recent Planalto Prospect discovery.

Colina Deposit Highlights

The Colina Deposit, a high-grade lithium resource, experienced a 41% boost in its MRE, reaching 63.5 million tonnes at 1.3% Li2O, making it one of the largest Tier-One undeveloped lithium resources globally.

The breakdown includes Measured resources at 1.73 million tonnes with a grade of 1.47% Li2O, Indicated resources at 39.29 million tonnes grading 1.36% Li2O, and Inferred resources at approximately 22.5 million tonnes with a grade of 1.2% Li2O.

Close-spaced infill drilling at Colina resulted in a significant increase in grade in both Measured and Indicated JORC resource categories, demonstrating the Project’s potential.


Table 1: Updated MRE for the Colina Lithium Deposit (reported above a 0.50% Li2O cut-off grade).


Figure 2: Colina MRE resource growth timeline showing JORC resource classification breakdown and drillholes completed.

Fog’s Block Maiden Resource & Exploration Target

Latin Resources successfully defined a Maiden Inferred Resource Estimate at Fog’s Block, totalling approximately 6.8 million tonnes at 0.9%.

Commencing in August 2023, the drilling program consisted of 15 diamond drill holes, encompassing a total distance of 5,021.34 metres.

Notably, the Fog’s Block deposit exhibits continued opportunities for expansion, with the independently estimated JORC Exploration Target Range suggesting a potential quantity within the range of 7.0 to 18.0 million tonnes, accompanied by a grade spanning from 0.8% to 1.1% Li2O.


Figure 3: Oblique 3D view of the Fog’s Block MRE Model.

Future Growth Opportunities

The upgraded MRE is is poised to wield a considerable positive impact on the forthcoming Definitive Feasibility Study (DFS), scheduled for completion in mid-2024.

Originally aligned with the Preliminary Economic Assessment (PEA) mining plan, which outlined Phase 1 production commencing in 2026 and Phase 2 averaging 525,000 tpa SC5.5 and 159,000 tpa SC3 beginning in 2029, the augmented MRE prompts an inclusion of a Phase 3 extension and expansion to the production profile.

This expansion will undergo thorough evaluation as part of the comprehensive DFS, enhancing the Project’s overall economic outlook.

Chris Gale, Latin Resources Managing Director, expressed gratitude for the exploration team’s efforts, highlighting the positive impact on the Project’s economics.

“What a great effort from our exploration team. Another significant milestone met with our upgraded MRE to over 70Mt. This Project is fast becoming a Tier One lithium resource as we predicted. We are also very encouraged by the consistent uplift in grade as we infill drill. This is a great sign of a quality mineral resource,” he said.

“The increase in size of the JORC resource will have an extremely positive impact on our DFS economics as the resource increase allows us to evaluate building phase 3 of the project lifting output significantly. The lithium market sentiment is low at the moment; however, no one can say Latin hasn’t delivered what it has promised over the last 2 years. I thank the shareholders that have stuck with us through these difficult times!”

The Company plans to continue resource definition drilling at Colina and explore the Fog’s Block Deposit, along with the newly discovered Planalto Prospect, in 2024.


Figure 4: Plan view of the Colina Deposit with MRE area, drill collars and section locations.

Tony Greenaway, Latin Resources’ Vice President of Operations – Americas, also expressed his satisfaction with the exceptional outcome and emphasised the potential for Salinas to become one of the largest global lithium projects.

“Once again, our highly skilled and extremely dedicated exploration team at the Salinas Project have delivered an outstanding result for the Company. With our combined mineral resource inventory coming in at over 70Mt and significant upside from the 7.0 to 18.0 Mt exploration target range at Fog’s Block, we are fast approaching defining a resource in excess of 80Mt and developing one of the largest global lithium projects,” he said.

“It has been a busy twelve months on site at Salinas in 2023 to achieve this exceptional result, and the whole team is looking forward to continuing our efforts in 2024.”

“Our initial focus early in the new year will be to further upgrade the Colina Deposit to enable the declaration of mineral reserves as part of the DFS process, after which we will eagerly resume our exploration focus specifically targeting the emerging Fog’s Block Deposit, and our newly discovered Planalto Prospect where our first hole has intersected a wide pegmatite system.”

LRS’s Australian Stock Exchange-listed share price has risen 11.76% today and is currently selling at 19c (1:45 pm UTC+ 8 hours).

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