Deeper drilling pays off as Latin eyes potential for stacked lithium pegmatites

Drilling has outlined the potential to find more lithium at Latin’s Colina prospect after a wide, spodumene-bearing pegmatite was intersected below previously reported intersections.

Between 15% and 20% visual spodumene was observed in a 7.46m pegmatite intersection from a depth of 207.0m in hole SADD020, indicating potential for deeper drilling to find more lithium.

Assaying of SADD016, where visible spodumene was observed in the central area of the prospect, has returned a 25.24m intersection grading 1.25% Li2O from a down-hole depth of 94.14m, which surpasses all previous intersections.

Previous drilling at Colina had defined lithium mineralisation over a kilometre, establishing it as a significant hard rock lithium prospect.

Latin Resources (ASX:LRS) will now undertake dense media separation (DMS) metallurgical test work on the Colina prospect drill core as part of its strategy to fast-track exploration to a JORC resource.

“The discovery of a new spodumene pegmatite at depth in hole SADD020, below all our previously reported pegmatites, has highlighted the upside at Colina,” exploration manager Tony Greenaway said.

“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.”

He added that the DMS test work will provide preliminary recovery and potential lithium concentrate grades while providing guidance for a more detailed metallurgical test work program.

Lithium prospectivity

Colina is located within the Salinas lithium project in Brazil, which is close to where Companhia Brasileira De Lítio is actively mining spodumene pegmatites to be concentrated before being transferred to a chemical plant in Divisa Alegre, Minas Gerais, for processing into industrial-grade lithium hydroxide.

Minas Gerais state itself is well served by infrastructure, roads, hydroelectric power, water and the port of Vitoria in the neighbouring Espirito Santo State.

Previous work within the Salinas South project area has identified outcropping pegmatites containing spodumene and an anomalous lithium corridor.

Latin aims to use information from its drilling to calculate a maiden resource for the prospect, which is due for release in December this year.

With lithium continuing to draw premium prices, with Pilbara Minerals selling a spodumene cargo before its planned sixth BMX auction for a US$7017/t equivalent price and forecasting that demand for the battery metal remains strong, defining a resource could be significantly value accretive for the company.

This article was developed in collaboration with Latin Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.