Quarterly Activities Report For The Period Ending 31 December 2022

Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to report on its activities for the three months ending 31 December 2022.

Highlights

Salinas Lithium Project, Brazil

• Maiden independent JORC Indicated and Inferred Mineral Resource Estimate for the Colina Lithium Deposit of 13.3 Mt @ 1.2% Li2O reported above a cut-off of 0.5% Li2O (2.08 Mt Indicated and 11.17 Mt Inferred).
  
• Significant upside growth potential identified at Colina, with SGS confirming an independent estimated JORC Exploration Target Range.
• Recent drilling at the Colina West prospect, 500m to the west of Colina has confirmed the continuity of the thick high-grade spodumene pegmatites.
• A 65,000m drilling campaign planned for 2023, with the addition of four more drilling rigs for a total of eight on site. This expanded drilling program is designed to fast track rapid resource growth at the Colina and Colina West Deposit and underpin a rapid move towards potential future development.
• Preliminary Economic Assessment (PEA) is well under way to allow fast tracking of a DFS in 2023.
• Exceptional metallurgical test work results showing consistency of lithium recovery across the known ore body; results also show increased crush size (12.5mm) recovery and grade remaining high, demonstrating very coarse liberation of spodumene:
  • Average recovery of 80.5% of Li₂O; and
    
  • Production of extremely high-grade Li2O concentrate (up to 6.6%) from simple Heavy Liquid Separation (HLS).

Cloud Nine Halloysite-Kaolin Deposit, WA

• Significant Mineral Resource upgrade with 33% Increase in global Mineral Resource Estimate to 280 Mt of kaolinised granite, 70 Mt upgraded from Inferred to Indicated.
  
• Test pit excavation complete and bulk sample of kaolin material delivered to potential customers to advance offtake discussions.

Corporate

• Appointment of leading lithium director Peter Oliver to Board, bringing 20 years’ experience in lithium leadership roles.
  
• Latin held $26.871 million in cash and investments as at 31 December 2022.

During the quarter, the Company progressed activities at its Salinas Lithium Project in Brazil, announcing the Maiden Mineral Resource Estimate (MRE) for the Colina Deposit; identifying the new discovery at Colina West; and reported further positive results from ongoing metallurgical test work.

At the Cloud Nine Halloysite-Kaolin Project in Western Australia the Company upgraded the MRE, completed excavation of the test-pit and collected bulk samples for offtake discussions.

Latin Resources Executive Director, Christopher Gale commented:

“This has been a standout quarter for Latin Resources, and we have made significant progress across our project portfolio.

“We are delighted to have announced the Maiden JORC Mineral Resource Estimate for the Colina Lithium Deposit, and even more pleasing is the significant upside identified in the Exploration Target Range. Add to this the high-grade results from our adjacent discoveries Colina West and Colina South, it gives us great confidence that we will extend the potential of the Salinas Lithium Project.

“Our ongoing metallurgical test work demonstrates the consistency of the ore body, with results continuing to show high recovery rates from simple processing. This is very encouraging for the potential economics of Colina.

“We made solid progress at Cloud Nine with the JORC MRE upgrade of 33% and the completion of the test mining pit shows great potential for this project.

“Elsewhere, we were very pleased to have our Exploration Manager on site for reconnaissance exploration activities at the Catamarca Lithium Project in Argentina, with the next phase of work to include systematic mapping and surface sampling to plan and define drill targets. We have also commenced drilling on our MT-03 Copper Project in Peru.”

Chris went on to say “Latin Resources is looking forward to significant progress on its projects in South America in 2023. The focus for our team will be on growing our JORC Resource at our Salinas Lithium Project and completing our feasibility studies. We are expecting 2023 to be a watershed year in Latin’s 15 years of operations.”

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