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Latin Resources Confirm New Planalto Discovery

31 January 2024 10:37
ASX: LRS

Latin Resources Limited (ASX:LRS) continues to demonstrate the substantial potential of its Salinas Lithium Project in Brazil with the confirmation of high-grade assay results for its third spodumene discovery, Planalto, further enhancing the Project’s overall scale and significance.

High Grade Results

Latin reported high-grade assay results from drilling at the Planalto Prospect, also known as SADD223, marking the identification of the third significant spodumene discovery within the Salinas Project, positioned approximately 1.8 kilometres to the Southwest of the Colina Mineral Resource Estimate (MRE).

In December, the Company increased the MRE at its Salinas Project by 56%, reaching a total of 70.3 million tonnes at 1.27% Li2O. This substantial increase was driven by a 41% expansion in the Colina Deposit MRE and the maiden JORC resource at Fog’s Block.

The drilling at SADD223 targeted a structural and geophysical anomaly situated within the 12-kilometre prospective lithium corridor at Salinas.

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Figure 1: Plan view of the Colina Deposit with MRE area, drill collars and section locations

The drill hole reached a final depth of 450 metres, successfully intersecting pegmatites in the same zone where the Company had previously identified spodumene mineralisation.

Significant intercepts from SADD223:

  • 9.25 metres @ 1.21% Li2O from 395.29 metres
  • 16.14 metres @ 1.29% Li2O from 425.00 metres
    • Including 7.14 metres @ 1.63% Li2O from 434.00 metres

Assays from the Planalto Prospect reveal a substantial 32.94-metre intercept of coarse-grained spodumene mineralisation, validating the assumption of a significant lithium discovery at this site.

Given its proximity to existing discoveries, the Planalto Prospect effectively extends the known continuity of mineralisation along both strike and down-dip of the Colina MRE.

This discovery not only reinforces confidence in the potential to expand the Colina MRE but also hints at the possibility of increasing the overall tonnage for the Salinas Project.

Buoyed by these promising assay results, Latin has strategically devised a diamond drilling program to further assess the Planalto discovery, with a dedicated drill rig assigned to the task.

Additional Assay Results

Additional assay results have been obtained for the 25 diamond drill holes conducted at the Colina Deposit, showcasing a continuation of high-grade outcomes.

Highlights include:

  • SADD206: 17.84 metres @ 1.58% Li2O from 260.15 metres
  • SADD209: 12.12 metres @ 1.27% Li2O from 231.00 metres
  • SADD211: 15.28 metres @ 1.05% Li2O from 352.50 metres
  • SADD213: 15.09 metres @ 1.53% Li2O from 102.91 metres
  • SADD213: 11.31 metres @ 1.19% Li2O from 373.75 metres
  • SADD214: 15.65 metres @ 1.60% Li2O from 239.74 metres
  • SADD214: 13.44 metres @ 1.52% Li2O from 150.32 metres
  • SADD221: 15.00 metres @ 1.56% Li2O from 262.00 metres
  • SADD223: 16.14 metres @ 1.29% Li2O from 425.00 metres
  • SADD227: 14.29 metres @ 1.12% Li2O from 200.98 metres

New Appointments

Latin warmly welcomes Mike Drake as the newly appointed Vice President of Development, leveraging his extensive experience in project delivery and operations establishment across diverse global locations.

In his role, Mr. Drake will spearhead efforts to propel business growth through Latin’s projects, contributing significantly to the Company’s strategic trajectory during this pivotal year of expansion.

Year of Growth

Entering a momentous year of development and growth, the Company is gearing up to achieve crucial milestones in the upcoming months.

Latin is set to release a comprehensive Resource Update in the second quarter, offering valuable insights into the resource base and laying the foundation for the subsequent unveiling of a detailed Definitive Feasibility Study (DFS).

This pivotal study will represent a significant juncture for the Company, providing an in-depth analysis of potential economic viability, supported by extensive research and data to fuel growth and ensure future success.

Built upon the Colina MRE disclosed in June 2023, totalling 45.2 million tonnes at 1.32% Li2O, the Preliminary Economic Assessment (PEA) for the Salinas Project envisions a standalone mining and processing operation targeting 3.6 million tonnes per annum.

Latin foresees that the upcoming DFS will surpass the PEA results, ultimately showcasing the Salinas Lithium Project’s potential to emerge as one of the world’s most cost-effective spodumene producers.

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Figure 2: Salinas Project development schedule.

Plans for 2024

In 2024, Latin’s exploration endeavours are primed towards increasing tonnage, enhancing confidence in the current Colina MRE, and pinpointing new priority drill targets at Colina and Fog’s Block.

A resource definition drilling program initiated in December 2023 at the Colina Deposit will persist into the first quarter of 2024, focusing on infill and extensional drilling to bolster confidence in JORC resource categories and extend spodumene mineralisation down dip within the existing Colina MRE.

Simultaneously, additional drilling at the Fog’s Block Deposit is planned to unveil opportunities along strike and depth, extending the Maiden Fogs Block MRE.

Meanwhile, at the newly identified Planalto Prospect, an extensive follow-up drilling program is scheduled early this year, aiming to provide ample drill coverage for a maiden MRE calculation for the area.

Company Comments

Chris Gale, the Managing Director of Latin Resources, expressed profound excitement regarding the notable progress achieved by the Company thus far.

“This past year has been a transformative period for our company,” he said.

“We have achieved significant milestones that not only reflect our commitment to excellence but also underscore our potential for future growth. 2023 was a busy year for our Brazilian exploration team, resulting in a series of major upgrades and increases to our Mineral Resource of now over 70 million tonnes.”

“We also published a very compelling PEA which detailed a strong $3.6 billion NPV with exceptionally low capex and operating costs . The lodging of our Environmental permits for the Salinas Project is a significant development milestone. The submission highlights the excellent sustainability principles that will be employed and benefits for local, provincial and national stakeholders.”

“We thank our team and supporting consultants for their efforts over the past 18 months to deliver an incredibly high-quality EIA-RIMA. In addition to the EIA-RIMA, development activities are progressing at pace, aligned with Latin Resources’ objective of delivering first production by mid-2026.”

“We are very pleased to have secured and appointed Mike Drake as our VP of Development. Mike adds an incredible wealth of development experience to enable Salinas to be taken into production.”

“Looking forward, we’re set for another transformative year with DFS, offtake, and FID outcomes progressing to schedule. We are poised for continued growth and success and would like to thank shareholders for their continued support.”

LRS’s Australian Stock Exchange-listed share price has risen 1.18% today and is currently selling at $0.17 (10.30am UTC+ 8 hours).

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