Commencement Of Feasibility Studies For Salinas Lithium Project

Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to announce the appointment of SGS Geological Services, Canada (“SGS”) to commence and manage a Preliminary Economic Assessment (“PEA”) on the Company’s Colina prospect, a part of the larger Salinas Lithium Project (“Project”), located in the pro-mining district of Minas Gerais in southeast Brazil (Figure 1 and Figure 2).

HIGHLIGHTS

• Latin Resources has appointed leading mining consultant SGS Geological Services (SGS) to carry out Metallurgical test work, JORC Mineral Resource Estimation and a Preliminary Economic Assessment (PEA) on the Colina prospect, an important milestone in the future development of the Salinas Lithium Project in Brazil.
• The PEA is being run in parallel with the current diamond drilling program which is designed to establish a maiden JORC Mineral Resource Estimate which will feed into the broader PEA studies.
• Latin Resources also plans to commission SGS to build a pilot plant to produce a representative sample of lithium concentrate product.
• Latin Resources expects to be positioned to fast track the project from PEA directly to Definitive Feasibility Study (DFS).

SGS is a global leader in metallurgy and process development providing an integrated approach and delivering expertise throughout the mining cycle. SGS has extensive spodumene lithium expertise and have recently completed other similar lithium project studies in the region including the Sigma Lithium Grota do Cirilo Project DFS (NPV8% of US$5.1 Billion¹).

The Company expects to deliver its maiden JORC Mineral Resource for the Colina prospect by the end of calendar year 2022, and complete the PEA by March 2023. On successful completion of the PEA, the Company anticipates progressing directly to a Definitive Feasibility Study (“DFS”) which is programmed to be completed by December 2023.

SGS will run a metallurgical test work program which may include variability sample analysis, semi quantitative XRD and QEMSCAN analysis, Heavy Liquid Separation (“HLS”) testing, and whole ore flotation analysis. The Company also plans to commission SGS to build a Dense Media Separation (“DMS”) pilot plant in Belo Horizonte, Minas Gerais and provide potential offtake customers with a representative lithium concentrate product.

Latin has held preliminary discussions with several international car and battery manufacturers as well as leading lithium trading houses with respect to future supply of its lithium product. Latin has now taken the approach to fast track the feasibility studies to then hopefully secure offtake agreements with suitable customers.

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