Latin dancing on Cloud Nine as infill drilling confirms top quality kaolin deposit
Latin Resources is likely to increase confidence in the Cloud Nine halloysite-kaolin resource, after infill drilling intersected thick zones of exceptionally bright kaolinised granite.
Nearly two thirds of the holes drilled to date have been analysed for brightness, which is strongly correlated with the purity of the kaolin resource, with results such as 43m at 85.4 ISO‐B from 7m highlighting the quality of the deposit.
The results raise the likelihood that Latin Resources (ASX:LRS) could upgrade a significant portion of the current Inferred resource of 207Mt of kaolinised granite – including a sub‐domain of 50Mt grading 6% halloysite – into the higher confidence Indicated and Measured categories.
Geotechnical drilling for bulk density measurements have also been successfully completed and will provide vital data for an updated resource estimate, which is currently being undertaken.
Kaolin is used in the paper and ceramics industries, although new applications are always being discovered, while halloysite is used in the existing ceramic, pharmaceutical and cosmetic markets, as well as the battery and nanotechnology sectors.
Halloysite from the project in Western Australia is also being tested by CRC CARE for its use in emissions reduction, specifically for the reduction in methane emissions from cattle.
“It is an exciting time for the Cloud Nine Project, with our team busy steadily progressing the Project through the Pre‐Feasibility Study,” exploration manager Tony Greenaway says.
“The latest results for the kaolin brightness have continued to reaffirm that the Cloud Nine Project is a world class kaolin deposit.
“The upgrading of the JORC kaolin resource, and the collection of the bulk kaolin samples, are both significant milestones for the project, and will allow the company to progress further toward the potential development of its first mining operation.”
The infill drilling program has returned significant, near surface thicknesses of kaolinised granite with 66% of the holes analysed so far returning results above 80 ISO-B with several holes returning greater than 85 ISO-B brightness.
Notable results besides the top hit include 38m at 85.3 ISO-B from 12m, 25m at 85.2 ISO-B from 17m and 18m at 87.3 ISO-B from 6m.
The nine hole sonic geotechnical drilling program has also recovered representative core samples from within the footprint of the existing resource.
The in-situ dry bulk density data is an integral part of the ongoing resource estimation work at Cloud Nine and will improve the confidence levels in the current Inferred JORC Resource, while the geotechnical data is required for the mine design and scheduling work currently underway as part of the PFS.
Latin has engaged Southern Geoscience Consultants to manage a high detail airborne magnetic and radiometric survey covering its extensive regional tenement package.
This work is aimed at defining further exploration targets along almost 105 kilometres of prospective tenure.
Processing of this data, which will include a structural interpretation and hyperspectral processing of satellite data, is estimated to be completed during the third quarter.
Digital elevation data will be collected as part of the survey for use in future scoping studies, circumventing the need for further DEM surveys and reducing costs considerably.
The company has also started permitting and approvals process for development of Cloud Nine.
It has submitted a Program of Works application under the current exploration licence to the Department of Mines, Industry Regulation and Safety to enable the excavation of a trial mining test‐pit, applications to convert the exploration licence to a mining licence, and scheduling for the commencement of baseline environmental studies.
Kaolin from the test pit will be used in bulk scale metallurgical testing and to produce bulk product samples that can be sent to external parties which are in discussions regarding potential offtake agreements.
Multiple small-scale samples have already been provided to two parties, with discussions including the option to supply short-term direct shipping ore, which will represent a quick route to cash flow, and supplying value-added processed kaolinite and halloysite products in the longer term.
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.