Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to advise the latest assay results from diamond drilling at the Company’s 100% owned high-grade Colina Lithium Prospect (“Colina”), one of several prospects within the Salina Lithium Project in Brazil, has confirmed the previously reported visual spodumene estimations in hole SADD016. These results have surpassed all previous intersections, returning 25.24m @ 1.25% Li2O1 from the central area of the Colina Prospect. Mineralisation remains open to the south.
- Drilling at Colina has confirmed the presence of additional wide, spodumene bearing pegmatites below any previously reported intersections, with recent drill hole SADD020 intersecting 7.46m of pegmatite with estimated 15-20% spodumene.
- The latest results from diamond drilling in the centre of the Colina Prospect have confirmed the previously reported wide spodumene pegmatite intersection in drill hole SADD016, returning 25.24 m @ 1.25 % Li2O from 94.14 m.
- The Company will undertake preliminary Dense Media Separation (DMS) metallurgical test work on the Colina Prospect drill core as a part of the Company’s fast-track strategy.
Latin Resources’ Exploration Manager, Tony Greenaway, commented:
“Our drilling at Colina continues to return excellent results, with these latest assays from drill hole SADD016 being our best intersection to date, further highlighting this central zone of Colina as a priority area for the Company.
“The discovery of a new spodumene pegmatite at depth in hole SADD020, below all our previously reported pegmatites, has highlighted the upside at Colina. We know we have additional pegmatites to test further out to the west of Colina, and now we have proven the potential for additional stacked pegmatites at depth. The more we drill at Colina, the better this prospect seems to get. Based on this newly discovered pegmatite, the Company will continue to push our drilling below our previous target depths to fully evaluate this emerging new zone.
“We are also very pleased to get some initial metallurgical test work underway. We have had very productive discussions with a number of specialist consultant groups during the recent PDAC conference including metallurgical, mining, and environmental permitting consultants. We outlined and have initiated some dense media separation test work, which will provide the Company with preliminary recovery and potential lithium concentrate grades, as well as providing guidance for a more detailed metallurgical test work program to be undertaken as part of the Company’s strategy to fast-track our exploration activities to a Maiden JORC Mineral Resource.”
Colina Prospect – Resource Definition Drilling
Latest assay results from diamond drilling at the Company’s 100% owned Colina Lithium Prospect, part of the broader Salinas Lithium Project in Brazil, have confirmed the grade of the previously reported wide pegmatite in hole SADD016 (Figure 1 and Figure 2) including2:
- SADD0016: 25.24m @ 1.25% Li2O from 94.13min
including: 7.00m @ 1.52% Li2O from 97.00m
and: 9.19m @ 1.51% Li2O from 109.00m
Visual logging of hole SADD017 drilled down dip to the east of hole SADD016, has shown multiple separate wide pegmatites (Figure 3), with the Company’s on-site field teams estimating significant zones of spodumene in the logged pegmatites (Refer to Table 1 for details).
In addition to these two results, SADD020 drilled approximately 260m to the south of SADD016, has uncovered a new thick pegmatite below any previously reported intersections, with a zone of 7.46m of spodumene bearing pegmatite at a depth of 207.08m own hole (Figure 2 and Figure 4), with logging estimating between 15-20% spodumene3.
Figure 1: Drill section A-A’ showing completed and planned drill holes, and results for SADD0164and logged pegmatite intersections for SADD017 (results pending)
These results highlight the significant upside potential for the discovery of new pegmatite zones within the Colina Prospect. With the imminent arrival of additional, larger drilling rigs capable of reaching greater depths, the Company continues to push drilling beyond previously planned depths to fully evaluate this new zone.
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As the world continues on the path towards a future dominated by clean energy, lithium's importance only continues to grow. Demand for the battery metal has already reached an all-time high, increasing by 400 percent in 2021. What's more, there is every indication that this growth will continue in 2022, with prices increasing by 126 percent in just the first quarter.
Currently, Australia and Chile are the two leading producers of lithium, respectively accounting for 46.3 percent and 23.9 percent of worldwide production. Both countries are jurisdictionally inclined to support the mining sector. However, Chile's potential could one day see it outstrip even Australia where investment is concerned.
Housing the world's largest deposits of lithium, Chile's unique geological landscape and climate makes it ideal for lithium brine extraction. The country thus has a pivotal role to play in meeting demand and establishing a stable global supply chain.
As the world continues on the path towards a future dominated by clean energy, lithium’s importance only continues to grow. Demand for the battery metal has already reached an all-time high, increasing by 400 percent in 2021. What’s more, there is every indication that this growth will continue in 2022, with prices increasing by 126 percent in just the first quarter.
Currently, Australia and Chile are the two leading producers of lithium, respectively accounting for 46.3 percent and 23.9 percent of worldwide production. Both countries are jurisdictionally inclined to support the mining sector. However, Chile’s potential could one day see it outstrip even Australia where investment is concerned.
Housing the world’s largest deposits of lithium, Chile’s unique geological landscape and climate makes it ideal for lithium brine extraction. The country thus has a pivotal role to play in meeting demand and establishing a stable global supply chain.
A critical component of sustainability
Climate change is an undeniable problem, one which requires a collaborative effort to address. It is for this reason that governments around the world have all agreed to pursue full climate neutrality by 2050. Because combustion engines represent an inordinate percentage of greenhouse gas emissions, replacing them with electric vehicles (EV) is essential if any nation is to achieve their sustainability goals.
Given its cross-sector industrial importance, the battery metal was already in high demand.
The large-scale manufacturing of electric vehicles has caused this demand to increase exponentially. As multiple automotive manufacturers construct gigafactories to ramp up EV distribution, the need for lithium is growing well beyond our current production capacity.
Investors and mining companies can benefit by turning to jurisdictions like Chile to ramp up supply. The world’s migration towards a sustainable future simply cannot occur without lithium.
Lithium: Australia versus Chile
Although Australia houses impressive lithium reserves, the majority of the country’s stores occur in hard rock deposits. Mining these deposits is relatively inexpensive, but hard rock lithium operations also tend to have narrow margins compared to other methods. In particular, lithium brine extraction offers higher yields, greater efficiency and a lower overall environmental impact.
Currently, the largest lithium producer in Australia is Pilbara Minerals (ASX:PLS,OTC Pink:PILBF). Its flagship project, the Pilgangoora operation, is situated atop one of the world’s largest hard rock lithium deposits. It also jointly owns a pegmatite lithium project with Atlas Iron (ASX:AGO), the Mt Francisco project.
Geography represents Chile’s first major advantage over other jurisdictions. Alongside Bolivia and Argentina, Chile lays claim to a geographic region known as the Lithium Triangle. Located in the Andes in South America, it contains an estimated 68 percent of the world’s identified lithium resources.
The Lithium Triangle is home to a series of vast salt flats, beneath which sit incredibly lithium-rich brine pools. More promising still is the climate of the region, which is known for being incredibly hot and dry. This represents a considerable boon for extraction operations, which typically rely on evaporative processes.
A powerful investment opportunity
Chile’s mining sector has leveraged its arid geography to great effect. The country’s Salar de Atacama salt flat is the largest-producing brine deposit in the world. It is also home to several major lithium brine operations.
One of these is owned and operated by Albemarle (NYSE:ALB). Currently the largest business provider of lithium for electric vehicle batteries, Albemarle also operates a lithium carbonate plant at La Negra. According to an Albemarle spokesperson, the company has a long history in Chile backed by a unique contract.
SQM (NYSE:SQM) operates another major lithium brine operation in the salt flat. As the world’s largest lithium producer overall, the company recently announced plans to reduce brine extraction in the region by 50 percent by 2030. This announcement came in tandem with a commitment to reduce water usage across all its operations by 40 percent.
Finally, just south of Salar de Atacama is situated the highest-quality lithium pre-production project in Chile. Maricunga is jointly owned by Lithium Power International (ASX:LPI), Minera Salar Blanco and Li3 Energy. Situated just 250 kilometers from Chile’s coast, and 170 kilometers from the mining town of Copiapo, it’s said to possess characteristics directly comparable to Atacama. Maricunga is also adjacent to Highway 31, which connects Northern Chile to Argentina.
The most significant challenge to Chile’s growth, from an investment perspective, is sociopolitical. Although the country has a history of being relatively friendly towards the mining sector, its current government is exploring new legislation that could nationalize both copper and lithium. A new mining royalty bill is also in the works, which could increase tax rates by up to 80 percent.
It’s worth noting that not every investor considers the current political climate to be a risk. South32 (ASX:S32), a spinoff of BHP (ASX:BHP), recently invested US$1.55 billion to purchase a 45 percent stake in the Sierra Gorda copper mine, and a lithium auction held by Chile earlier this year saw Chinese manufacturing company BYD acquire extraction rights for 80,000 metric tons of lithium.
Chile is home to the largest, richest and most valuable lithium deposits in the world. For many investors, the high margins and low cost of lithium extraction in Chile more than make up for the potential of a few political speed bumps.
This INNSpired article is sponsored by Lithium Power International (ASX:LPI). This INNSpired article provides information that was sourced by the Investing News Network (INN) and approved by Lithium Power Internationalin order to help investors learn more about the company. Lithium Power International is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Lithium Power International and seek advice from a qualified investment advisor.
John Kaiser: No Upside in Tesla, Lithium Juniors are the Future of the EV Storyyoutu.be
Tesla (NASDAQ:TSLA) may be at the center of the electric vehicle (EV) revolution, but the Elon Musk-led company has no upside left. That means investors need to look elsewhere for opportunity.
That's according to John Kaiser of Kaiser Research. Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, he said that lithium juniors have become the place to be.
Referencing a report from Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO), Kaiser said that by 2035, roughy 1 million metric tons (MT) of lithium metal equivalent will be needed to support EV demand.
"The brines are going to come up with a big chunk, and Australia's pegmatites will add more, (but) that probably still will take care of only half," he said, noting that he expects companies working in Eastern Canada to step up.
Eastern Canada has suffered setbacks as a lithium jurisdiction due to past issues, including the downfall of Nemaska Lithium, but Kaiser said that the area is similar to Western Australia, where companies have seen success with pegmatite exploration. And in addition to that, it benefits from good access to water.
"Without this lithium becoming a reality, Tesla goes to a buck — it dies," he said.
Kaiser sees the lithium market as a gateway to the mining sector for young people, and said that although it can be tricky to understand, the payoff can be substantial.
"Play a statistics game. Look at the sector, see who's serious. Put together a basket of these lithium companies and treat it like a Silicon Valley startup portfolio where they have dozens of high-risk stories," he said, noting that while there will be failures, there will also be a handful of "superstars."
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Avalon Advanced Materials (TSX:AVL)) targets multiple critical minerals necessary for manufacturing clean technology. With over 25 years of experience working in the critical minerals sector, the company has first-to-market advantage, in addition to the years of expertise in the field.
The Separation Rapids Lithium Project, the company’s current flagship project, is in the preliminary stages of economic assessment and feasibility study. The project is in advanced exploration stages, but new studies are required per its new agreement with Essar Group to fund and build a new lithium refinery. However, an accurate economic assessment can now be completed since Avalon Advanced Materials has a specific refinery agreement.
- Avalon Advanced Materials is a Canadian-based mineral exploration and development company with assets targeting multiple critical minerals, including lithium and tin.
- The company’s entire portfolio consists of assets located in stable jurisdictions throughout Canada.
- The company’s flagship project, Separation Rapids, is poised to supply Ontario’s first lithium refinery and create a domestic supply chain for the critical mineral. It strategically aligns with the Ontario Critical Minerals strategy, leading sustainability solutions with its unique lithium petalite deposit in Northwestern Ontario.
- The petalite deposit can potentially serve both the global glass-ceramics industry and the electrification sector.
- Don Bubar, president and CEO, had the foresight to acquire assets covering multiple critical minerals. As a result, while the race to carbon neutrality heats up, the company is ready to supply the essential minerals that manufacturers need.
- Avalon Advanced Materials is a Canadian enterprise that has been in business for over 25 years, specializing in the critical minerals sector.
This Avalon Advanced Materials profile is part of a paid investor education campaign.*