Latin Resources

Overview

Latin Resources (ASX:LRS), an Australia-based mineral exploration company, is aiming to make a mark in global carbon reduction efforts through mineral projects that advance efforts toward net-zero emissions, and a corporate value that upholds the highest environmental, social and governance standards.

Lithium plays an important role in decarbonization goals, particularly for its application in lithium-ion batteries used for energy storage in renewable energy technologies. Demand for lithium continues to increase, with prices in 2022 reaching 430 percent higher year-on-year and expected to rise by 22 percent in 2026 due to shortages in raw materials. This rising demand is driven by the global energy transformation movement and provides significant opportunity for emerging new projects entering this space.

Latin Resources’ flagship Salinas Lithium Project is located 10 kilometers outside the town of Salinas, northeast of Minas Gerais in Brazil. The project’s Colina Lithium Deposit has a maiden JORC Mineral Resource Estimate of 13.3 million tonnes (Mt) @ 1.2 percent lithium oxide (indicated and inferred).

Salinas is 80 kilometers away from Sigma Lithium’s (TSXV:SGML) Grota do Cirilo property, which is on track to becoming one of the world’s largest lithium producers. Sigma has a world-class lithium resource base of 85.7 Mt @ 1.43 percent lithium oxide, with an average production of 766 kilo-tonnes per annum (ktpa) and a 13-year mine life. Sigma’s latest definitive feasibility study shows an after-tax net present value (8 percent) of US$15.3 billion and internal rate of return of 1,273 percent.

Latin Resources’ trajectory, demonstrated by significant upside potential from its maiden resource estimate and exploration targets, paints a parallel picture to Sigma Lithium’s Grota do Cirilo project.

As of February 2023, Latin Resources has expanded its lithium ground position to more than 38,000 hectares, a 367 percent increase, after it recently secured a large package of new tenements in the highly prospective Bananal Valley district in eastern Brazil. Through a new option agreement, the company has also secured additional mining rights directly adjacent to the South of Colina, where drilling by the company has confirmed the extension of the Colina host lithologies and pegmatitic intrusive bodies (assay results pending). The company’s regional exploration team will be undertaking initial reconnaissance mapping and geochemical sampling over the new project tenements as part of its exploration strategy in the now-expanded Salinas district.

The company released the final assay results from the 2022 resource drilling at the Colina prospect, which confirmed the continuity of high-grade at depth and along strike. In January 2023, Latin Resources commenced a new 65,000-meter mineral resource expansion drill program at Salinas. The program will focus on fast-tracking the growth of the Colina indicated and inferred mineral resource, as well as define a mineral resource for the Colina West Prospect. More than 3,000 meters of the planned 65,000-meter drilling have been completed to date, with initial results confirming high-grade mineralization envelope. The Colina Exploration Target Range is 13.3 Mt to 22 Mt @ 1.2 percent to 1.5 percent lithium oxide.

SGS Geological Services, Canada is undertaking a preliminary economic assessment on the company’s Colina Prospect. Upon successful completion of the PEA, Latin Resources anticipates progressing directly to a definitive feasibility study.

SGS is also carrying out a metallurgical test work program at the Salinas Lithium project. Test work completed to date has demonstrated exceptional metallurgy with more than 80 percent recovery of lithium oxide, and extremely high-grade lithium oxide concentrate of up to 6.6 percent from simple heavy liquid separation. In a statement, the company’s head of exploration Tony Greenaway calls the results “extremely encouraging,” and notes that while they cannot be directly translated to an operational environment, the implications for marketability and the economics are significant.

The company 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.

The Company signed a non-binding Memorandum of Understanding (MoU) in March 2023 with the Minas Gerais State Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (INDI) together referred to as Invest Minas. The purpose of the MoU is to provide mutual support between the parties to support the battery materials sector and supply chain investment in the region, including two-way introductions and investment partnerships in the region.

This partnership reinforces the existing cooperation between Latin and the State of Minas Gerais and assists with streamlining the approvals pathway for Latin to take the Colina Deposit through feasibility studies and into production provides significant opportunity for the development of both the project and the region.

The company’s Cloud Nine Halloysite-Kaolin Deposit near Merredin, Western Australia, presents an exciting opportunity as a globally significant kaolin-halloysite project located in Australia. Cloud Nine has the potential to be the largest undeveloped halloysite/ kaolin deposit in Australia, with an upgraded mineral resource estimate of 280 Mt of kaolinised granite, a 33 percent increase from the May 2021 global estimate of 207 Mt. The mineral resource contains 116 Mt of bright white kaolinite-bearing material in the indicated and inferred classifications.

Latin Resources has confirmed outstanding kaolin brightness results from the Cloud Nine infill drilling in 2022. Significant thicknesses of exceptionally bright kaolinised granite were intersected, highlighting the quality of the world class Cloud Nine Halloysite.

The company is now working to pursue potential offtake customers, which will include options to supply short-term products as well as value-added processed kaolin and halloysite products in the longer-term.

Latin Resources earlier signed an innovative $3.2 million research project with Australia’s Cooperative Research Centre for Contamination Assessment and Remediation of the Environment (CRC CARE) to develop methane reduction technologies using the clay mineral halloysite from its Cloud Nine Halloysite-Kaolin Deposit. This project enables Latin Resources to mine halloysite while undertaking initiatives to address the global need to reduce emissions.

In Argentina, Latin Resources holds a joint venture agreement with Argentinian investment group Integra Capital on the Catamarca Lithium project in Argentina. Integra Capital has the option to acquire 50 percent interest in the Catamarca project on an investment of US$1 million. The Catamarca Lithium project is a high-grade lithium pegmatite project with the potential to host world-class deposits.

The company’s geological team recently conducted on-ground reconnaissance field work at the Catamarca project, which highlighted priority areas for the planned extended fieldwork campaign to include detailed and systematic geological mapping and follow-up geochemical surface sampling to better understand the scale of the high-grade lithium pegmatite system encountered during the company’s 2017 drilling program.

Latin Resources will embark on a community engagement campaign to provide the local community stakeholders with information on the planned recommencement of exploration work at Catamarca Lithium project. A network of liaison offices will be established to serve as an information resource and conduit for feedback for the communities pertaining to the project.

Latin Resources is committed to strengthening its environmental, social and governance (ESG) credentials, and becoming a valuable supplier of the minerals needed to cut global emissions and support the green economy. Latin Resources is focused on ensuring that its operations positively impact the environment, the sustainability of the businesses and the products that it creates. The company has a goal to meet and exceed its ESG framework and is utilizing the Socialsuite platform to monitor and report on its ESG disclosure progress.

Company Highlights

• Latin Resources aims to become a contributor to global carbon reduction efforts through mineral projects that advance net-zero emissions goals, including lithium, halloysite, kaolin and copper.
• The company has increased its lithium ground position to more than 38,000 hectares for its Salinas Lithium Project in Brazil, after securing a large package of new tenements in the Bananal Valley district in eastern Brazil.
• Salinas’s Colina lithium deposit has a maiden JORC Mineral Resource Estimate of 13.3 million tonnes (Mt) @ 1.2 percent lithium oxide (indicated and inferred).
• The company entered into a non-binding MoU with the Minas Gerais State Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (INDI) together referred to as Invest Minas.
• The company’s Cloud Nine Halloysite-Kaolin Deposit in Western Australia has an upgraded mineral resource estimate of 280 Mt of kaolinised granite.
• The company has engaged in an innovative $3.2 million research project with CRC CARE for the development of methane reduction technologies using the clay mineral halloysite from Cloud Nine.
• Exploration field work at the Catamarca Lithium Project in Argentina has recommenced, and a community engagement campaign is underway.
• The company is committed to an ESG framework and supplying the green economy with the minerals needed to cut global emissions.