Latin fast-tracking development of Colina lithium prospect
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Latin has taken a key step towards developing its Salinas lithium project in Brazil’s pro-mining Minas Gerais district with the start of a Preliminary Economic Assessment.
The company has appointed leading mining consultant SGS Geological Services to carry out metallurgical testwork, JORC resource estimation and the PEA on the key Colina prospect where successful recent drilling returned an outstanding 1m intersection grading 4.22% lithium oxide within a broader 16m zone at 1.29% Li2O.
SGS is a global leader in metallurgy and process development with extensive spodumene lithium expertise and has recently completed similar lithium project studies in the region such as the Definitive Feasibility Study for Sigma Lithium’s Grota do Cirilo project.
The PEA work will be carried out in parallel with Latin Resources (ASX:LRS) current diamond drilling program, which is designed to establish a JORC resource that will feed into the feasibility studies.
Delivery of the maiden JORC resource at Colina is expected by the end of this year while the PEA is due for completion by March 2023.
This will be followed by a DFS, which is programmed to be completed by December 2023.
“We are extremely pleased to have engaged SGS Geological Services as an integral part of the Salinas Lithium Project development team; this appointment is an important milestone in the future development of the Colina prospect,” managing director Chris Gale said.
“SGS is a well-respected group with a proven track record of delivering high quality studies and projects.
“They have vast experience in the region, with the recent successful completion of Sigma’s DFS. Their recent and very relevant experience will help Latin to fast-track the development of our Salinas Project.”
Demand for lithium remains elevated as demonstrated by the rising prices of technical and battery grade lithium carbonate on the Chinese domestic market.
Benchmark Minerals Intelligence added last week that it had recorded an offer in South Korea for battery grade hydroxide at $70,000/tonne (CIF Asia) while the International Energy Agency (IEA) said that 50 more lithium mines were needed by 2030 to meet government EV ambitions around the world.
Gale added that the company was fielding a high level of inquiry from potential offtake customers, highlighting the quality of Colina’s lithium grade and tenure.
This includes several international car and battery manufacturers as well as leading lithium trading houses with respect to future supply of its lithium product.
Little wonder then that Latin is fast-tracking development studies for the project.
SGS will run a metallurgical test work program which may include variability sample analysis, semi quantitative XRD and QEMSCAN analysis, Heavy Liquid Separation (“HLS”) testing, and whole ore flotation analysis.
It may also be commissioned by the company to build a Dense Media Separation pilot plant in Belo Horizonte, Minas Gerais to provide potential offtake customers with a representative lithium concentrate product.
Salinas covers over 6,341ha of ground where drilling and sampling work has identified an anomalous lithium corridor extending across the project.
Ongoing resource definition diamond drilling at Colina has confirmed the presence of high-tenor spodumene pegmatites similar to those found in Western Australia.
It has also demonstrated the continuity of mineralisation along strike and down dip with the emerging pegmatite swarm remaining open in all directions.
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.