The rapid definition of the maiden Indicated and Inferred JORC resource estimate at Colina in just 10 months from just 10,528m of diamond drilling marks a major milestone for the company.
And there’s potential for significant growth given the independent exploration target by Toronto-based resource consultants SGS Geological Services – which sits at 13.5Mt to 22Mt at a grade ranging from 1.2% Li2O to 1.5% Li2O.
At a cut-off grade of 0.5% Li2O, Latin Resources (ASX:LRS) geology manager Tony Greenaway says the maiden resource at Colina – part of the wider Salina Project in Brazil – proves it is a significant discovery.
Of the 57 diamond drill holes completed at the cut-off to date, 47 drill holes have assay results which were used to produce the JORC Indicated and Inferred estimate of 13.3Mt at 1.2% Li20 (2.08Mt indicated and 11.17Mt inferred).
That part of the resource is already calculated in the higher confidence Indicated category speaks volumes about quality of the work that went into exploration at Colina.
“This will now be the platform on which the company will grow its resource inventory through further drilling in 2023,” Greenaway says.
“This target range does not consider the additional pegmatites discovered at Colina West, where we believe we will be able to add significantly to the resource inventory with more drilling,” Greenaway adds.
Latin’s maiden resource also underscores Canaccord Genuity’s recently coverage of the company, where the investment bank flagged that it might follow in the footsteps of Canada’s Sigma Lithium, which plans to start Brazilian lithium production in 2023.
This is further supported by recently completed metallurgical test work which found that simple Heavy Liquid Separation (HLS) was able to recover an average of 80.5% of the lithium oxide (Li2O) into a concentrate grading a very high average of 6.30% Li2O.
Colina West’s integral role in future exploration
Recent drilling at Colina West, only 500m to the west of Colina has confirmed the continuity of thick high-grade spodumene pegmatites intersected in drill hole SADD033.
A further three holes also recently intersected the pegmatite swarm with assays still pending.
While the Colina West prospect is not considered in this exploration target due to the limited amount of drill holes in the region, LRS says it will be part of future exploration and potential MRE updates made by the company.
Major drilling could unlock new discoveries in 2023
Greenaway says with eight drill rigs scheduled to be onsite from mid-January, Latin will be aggressively drilling throughout the new year.
A 65,000m drilling program is in the works, designed to fast-track rapid resource growth at the Colina and Colina West deposit in hopes to underpin a move towards future development.
“We will be specifically targeting Colina West with resource definition drilling, the Colina deposit itself with resource infill drilling, Colina South and the Salinas South prospect areas with reconnaissance exploration drilling – where we hope to have our next discovery,” Greenaway explains.
What else is in store?
A preliminary economic assessment (PEA) is underway to allow fast tracking of the definitive feasibility study (DFS).
The next MRE is set to take place in Q2, 2023.
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.
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