Latin Resources Limited (ASX: LRS) Announces Remarkable 41% Increase in Colina Deposit Mineral Resource Estimate
Latin Resources Limited ("Latin" or "the Company"), a leading lithium exploration company, is thrilled to announce a remarkable 41% increase in the Colina Deposit Mineral Resource Estimate ("Colina MRE") at its 100% owned Salinas Lithium Project in Brazil. This achievement solidifies Colina as one of the largest-scale Tier-One undeveloped lithium resources worldwide.
The updated Colina MRE now stands at an impressive 63.5 million tonnes (Mt) with an average lithium oxide (Li2O) grade of 1.3%, surpassing the previously reported figures. This includes 1.7Mt @ 1.5% Li2O in the Measured category, 39.3Mt @ 1.4% Li2O in the Indicated category, and approximately 22.5Mt @ 1.2% Li2O in the Inferred category.
Key Highlights of the Colina Deposit Mineral Resource Estimate:
- A substantial 41% increase in the total resource base from 45.2Mt to 63.5Mt.
- A significant increase in the contained Lithium Carbonate Equivalent ("LCE") from 1.47Mt to 2.05Mt.
- A remarkable 65% of resources classified into the JORC Measured and Indicated categories, underscoring the confidence in the geological continuity and grade of the Colina pegmatites.
- A noteworthy 11% increase in the grade of JORC Measured resources, rising from 1.34% to 1.47%, attributed to close-spaced infill drilling.
This achievement is the result of relentless exploration efforts since February 2022, which have seen over 206 drill holes covering 66,899 meters of drilling. These efforts have not only delineated the Colina Deposit but have also unveiled several other highly encouraging lithium prospects within the Salinas Lithium Project.
In addition to the Colina MRE update, Latin Resources is pleased to report the maiden Inferred Resource Estimate at Fog’s Block, which accounts for approximately 6.8Mt @ 0.9% Li2O, indicating substantial growth potential for the project.
The global Mineral Resource Estimate (MRE) for both Colina and Fog’s Block now stands at a remarkable 70.3Mt @ 1.27% of Li2O, further cementing the Salinas Project's significance in the global lithium market.
Looking ahead, Latin Resources is gearing up for an ambitious drilling program set to commence in January 2024. Sixteen diamond drill rigs will be deployed at the Colina Deposit and Fog’s Block, with a primary focus on upgrading the Colina MRE. Additionally, exploration efforts will extend to testing the new Planalto discovery over the Salinas Project tenure.
This substantial increase in the Colina Deposit Mineral Resource Estimate is expected to have a significant positive impact on the economics within the Definitive Feasibility Study (“DFS”), scheduled for completion in mid-2024. The initial Preliminary Economic Assessment (“PEA”) mining plan allowed for a Phase 1 production commencing in 2026, with Phase 2 average production of 525,000 tpa SC5.5 and 159,000 tpa SC3 commencing in 2029. The expanded MRE will now include a phase 3 extension and expansion to production, which will be thoroughly evaluated in the DFS.
Latin Resources Limited is excited about the future prospects of the Salinas Lithium Project and remains dedicated to delivering value to its shareholders and stakeholders.
Latin Resources Managing Director, Chris Gale, commented:
"What a great effort from our exploration team. Another significant milestone met with our upgraded MRE to over 70Mt. This Project is fast becoming a Tier One lithium resource as we predicted. We are also very encouraged by the consistent uplift in grade as we infill drill. This is a great sign of a quality mineral resource.
The increase in size of the JORC resource will have an extremely positive impact on our DFS economics as the resource increase allows us to evaluate building phase 3 of the project lifting output significantly. The lithium market sentiment is low at the moment; however, no one can say Latin hasn’t delivered what it has promised over the last 2 years. I thank the shareholders that have stuck with us through these difficult times!”
Latin Resources’ Vice President of Operations - Americas, Tony Greenaway, commented:
“Once again, our highly skilled and extremely dedicated exploration team at the Salinas Project have delivered an outstanding result for the Company. With our combined mineral resource inventory coming in at over 70Mt and significant upside from the 7.0 to 18.0 Mt exploration target range at Fog’s Block, we are fast approaching defining a resource in excess of 80Mt and developing one of the largest global lithium projects.
It has been a busy twelve months on site at Salinas in 2023 to achieve this exceptional result, and the whole team is looking forward to continuing our efforts in 2024. Our initial focus early in the new year will be to further upgrade the Colina Deposit to enable the declaration of mineral reserves as part of the DFS process, after which we will eagerly resume our exploration focus specifically targeting the emerging Fog’s Block Deposit, and our newly discovered Planalto Prospect where our first hole has intersected a wide pegmatite system.”
Latin Resources Limited (ASX: LRS) is an Australian-based mineral exploration company, with projects in South America and Australia, that is developing mineral projects in commodities that progress global efforts towards Net Zero emissions.