Latin (ASX:LRS) adds on Tier 1 hopes
October 18, 2023Lithium gainer Latin Resources (ASX:LRS) has added up to 10% in morning trade after flaggings its flagship Salinas project in Brazil was growing into a Tier 1 lithium deposit.
Tier 1 deposits are company-makers because their large sizes and low costs support very long mine lives.
Using long-run commodity prices, a Tier 1 deposit can usually generate more than US$300 million a year of revenue.
Salinas value
Salinas is already a district scale resource that hosts the hosts the Colina deposit.
Latin Resources told the market that drilling to the southwest of Colina had added significant strike extensions to its mineral resource footprint for Colina after it discovered a new pegmatite cluster.
The Western Australian company’s Colina mineral resource estimate currently sits at 45.2 million tonnes at 1.32% Li2O.
About two-thirds or 30.2Mt sits in the measured and indicated category, grading 1.4% Li2O.
Latin Resources revealed assays for an additional 19 diamond drill holes had been received from Colina deposit, as high-grade results continued for Colina SW Extension, Colina Infill and Fog’s Block.
Among the significant results were 14.7 metres at 1.48% Li2O from 157.6m at Colina SW Extension, 19.0m at 1.73% Li2O from 293m at Colina Infill, and 8.5m @ 1.33% Li2O from 155.1m at Fog’s Block, including 3.8m at 1.76% Li2O from 159m.
“Our ongoing brownfields extension drilling at Colina, and region greenfield exploration drilling continues to discover new pegmatites within the Salinas lithium project. Step-out drilling immediately to the southwest of Colina has added significant strike extensions to the already considerable mineral resource footprint at Colina, and we expect that these will be incorporated into an updated resource estimate before the end of this year.
“In addition to this, our step out drilling further to the southwest, has intersected what we believe may be a third pegmatite cluster. While it is early days, and more drilling is required to better define this developing pegmatite, we are extremely encouraged by this new discovery as it solidifies out interpretation that the Colina deposit is just one part of a much larger system.” Latin Resources Vice President of Operations – Americas Tony Greenaway
Next steps
The company will undertake infill drilling at Fog’s East this month before updating its Colina resource statement by the end of the year.
Latin Resources is aiming to keep the drills spinning at Colina and Fog’s Block throughout next year as part of its 65,000m drill campaign, mobilising 10 diamond drill rigs as part of its effort.
Adding value
The WA company has added 167% to its share price this year, making Latin Resources the biggest lithium gainer on the ASX in the past 12 months.
Its shares were at changing hands for 28c by late morning, up 2c or 5.7% on yesterday’s 26c close.
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