Latin Resources announce MRE upgrade to Colina Lithium Deposit

30 May 2024 11:44

Latin Resources Limited (ASX:LRS) has announced a significant upgrade to the Mineral Resource Estimate (MRE) for its Colina Lithium Deposit, part of the larger Salinas Lithium Project in Brazil. This update marks a major milestone, positioning Colina among the largest undeveloped lithium deposits globally.

Increase to MRE

The latest MRE for the Colina Lithium Deposit now stands at 70.9 million tonnes (Mt) with an average grade of 1.25% Li2O, an 11% increase from the previous estimate of 63.5 Mt in December 2023. This places it among the largest tier-one, undeveloped lithium deposits globally.


Table 1: Updated MRE for the Colina Lithium Deposit and Global Salinas Project (reported above a 0.5% Li2O cut-off grade).

The overall Salinas Project, including the Colina and Fog’s Block deposits, now boasts a total MRE of 77.7 Mt at 1.24% Li2O. The Fog’s Block Exploration Target Range (ETR) adds an additional potential of 7.0 to 18.0 Mt.

The detailed breakdown of the MRE includes 28.64 Mt at 1.31% Li2O of measured resource and 38.63 Mt at 1.23% Li2O of indicated resource.


Figure 1: Plan view of the Salinas Project, showing location of the updated Colina Deposit, Planalto Discovery and Fog’s Block Deposit.

High confidence JORC classification

An impressive 95% of the Colina Deposit is now classified under the measured and indicated categories, providing a high level of confidence for the forthcoming Definitive Feasibility Study (DFS). This is expected to positively impact the economics by targeting improved cash flows and longer mine life.

The previous Preliminary Economic Assessment (PEA) indicated an after-tax NPV of $3.6 billion, a free cash flow of $6.8 billion, and a total Life of Mine (LOM) revenue of $12.6 billion. The DFS is due for release in Q3 2024.


Figure 2: Plan view of the Colina Deposit with MRE area, drill collars and section locations.

Large scale undeveloped lithium deposit

Latin Resources Managing Director Chris Gale commented “This is another fantastic result from the Latin Resources exploration team, delivering another uplift in MRE tonnage and significantly improving the confidence in the Colina Lithium Deposit.

“This truly cements the Project as hosting one of the largest scale undeveloped lithium deposits. What is particularly pleasing to me is the likely impact on the economics of our upcoming DFS to be released in Q3 2024.”


Figure 3: Oblique 3D view of the May 2024 Colina MRE Block Model (top) and with Resource Categories (bottom).

Latin’s Vice president of Operations – Americas, Tony Greenway, is also excited for what lies ahead, stating “While this is an excellent result, work doesn’t stop at the Salinas Project. We are pivoting our focus back to exploration and the further expansion of our already formidable resource base.

“We will continue to delineate this emerging new deposit, with the aim of potentially generating a maiden resource later in the year.”

Next steps

Latin continues extensive diamond drilling operations at the Salinas Project with four rigs currently active on the Planalto Prospect. This offers further upside growth providing the Company with the opportunity to reach over the 100Mt Global MRE target.

LRS’s Australian Security Exchange-listed share price is currently trading at $0.25 (11:45 am UTC+ 8 hours).

The Market Bull Logo


Join our mailing list to receive the latest stock market news.

You have Successfully Subscribed!

Share This