Latin Resources has kicked off the day with a bang, announcing a resource upgrade is imminent at its Colina lithium deposit, part of the broader Salinas lithium project in Brazil.

The company has wrapped up resource definition drilling, with a total of 135 diamond drill holes for 39,033m completed.

Notable in intercepts include:

  • 8.16m at 1.36% Li2O from 318.00m (SADD093);
  • 13.80m at 1.35% Li2O from 283.30m (SADD096);
  • 22.00m at 0.98% Li2O from 309.00m (SADD107)
  • 8.36m at 1.50% Li2O from 243.59m (SADD112); and
  • 16.93m at 1.36% Li2O from 187.07m (SADD114).

All assay results have been received and a resource upgrade is expected this month.

Resource upgrade flagged for June

Latin Resources (ASX:LRS) expects the drilling to ‘significantly expand’ the existing 13.3Mt at1.2% Li2O resource (2.08Mt at 1.21% Li2O Indicated and 11.17Mt at 1.21% Li2O Inferred) by incorporating new high-grade pegmatite swarms encountered to the west and southwest of the Colina deposit.

“With all the planned drilling for our MRE upgrade now complete and assay results received, SGS has commenced the resource estimation process and this is on track to be released in June,” VP of Operations, Americas, Tony Greenaway said.

“We are all eagerly awaiting the outcome of this process, as we believe that we will see a significant expansion in the JORC resource for Colina, given the exceptional results we have been seeing in our drilling this year.”

And the drilling doesn’t stop there

The company remains confident that the balance of the 65,000m drilling campaign, which is expected to be completed in late 2023 with eight diamond rigs continuing to operate through the year, will unlock further value from the Colina deposit.

“Our drilling rigs are still turning on site, with all eight rigs operational,” Greenaway said.

“This next phase of drilling will focus on the continued expansion of the Colina deposit to the south-west, where our high-grade mineralisation remains open, infill drilling to increase the JORC classification of the defined resources, and testing of new areas along strike, where our regional teams have identified multiple new target areas through mapping and geochemical sampling.”

Results from the extensional and regional programs will be reported as they arrive.

PEA and DFS the next steps

LRS has also confirmed that the Preliminary Economic Assessment (PEA) will be defined further after the release of the Colina MRE update in June 2023, allowing the updated MRE to be incorporated in the PEA study metrics.

And the company intends to move directly to a Definitive Feasibility Study (DFS), immediately following the release of the PEA.

Other works will also progress including large scale DMS test work of the Colina lithium ore.

 

 

 

This article was developed in collaboration with Latin Resources Limited, 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.

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