Test Pit And Bulk Samples To Advance Offtake Cloud Nine Kaolin Deposit

Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to report the completion of the trial mining test-pit to advance mine pit design and discussions with offtake partners at its 100% owned Cloud Nine Halloysite-Kaolin Deposit (“Cloud Nine”) in Western Australia.

HIGHLIGHTS

• Trial mining test-pit completed, 50 Tonnes bulk sample collected.
• Bulk sample will be used to provide kaolin material to potential customers as offtake discussions advance.
• Bulk scale metallurgical test work to optimise mining design.

Latin Resources Managing Director, Chris Gale commented:

“The completion of the test-pit and collection of bulk samples is an important stepping-stone in the development of the Cloud Nine Project as a world class kaolin deposit. The bulk samples have now been sent to the potential customers for final analysis. We are also working on our scope of works, along with mine permitting for a DSO style product to sell to our potential customers. If the numbers stack up, Cloud Nine could develop into a great project for Latin Resources."

TRIAL MINING TEST-PIT

A test pit has been successfully excavated at the Cloud Nine Halloysite-Kaolin Deposit. The objective of the test pit is to:

• Collect a large sample for bulk metallurgical testing; and
  
• Provide product samples to a number of potential offtake partners for their qualification test work.

The test pit was excavated in accordance with the Program of Works, which was approved by DMIRS early in 2022, and successfully extracted the planned volume of kaolin.

Kaolin extracted from the test-pit will be used in bulk scale metallurgical testing, and importantly, will be used to prepare bulk product samples which will be sent to two separate groups currently in discussion with the Company in respect to potential offtake agreements, this will enable them to undertake their own product qualification testing.

The Company has previously provided multiple small-scale samples from Cloud Nine to these two parties. Discussions with both groups are ongoing and have included options to supply short term Direct Shipping Ore (“DSO”) products, as well as supplying value-added processed kaolin and halloysite products in the longer term.

Excavation of the test pit has also provided the Company with valuable information to further refine preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions. Material samples will also assist with further testing and analysis to continue improving the understanding of the deposit including the overlying material.

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