Latin Resources’ Cloud Nine halloysite-kaolin project in WA is more valuable than ever following a 33% increase in resources to 280Mt of kaolinised granite.

Notably, the company’s confidence in the resource has also increased with 70Mt of the resource now reporting to the Indicated resource category, meaning enough information on geology and grade continuity is available to support mine planning.

Adding further value for Latin Resources (ASX:LRS), about 116Mt of the global resource (26.7Mt Indicated) is made up of bright, white kaolinite‐bearing material while infill drilling has allowed for 85Mt of high-grade (58%) halloysite-bearing material to be defined in the Inferred Resources category.

Kaolin is used in the paper and ceramics industries as well as in the manufacture of high purity alumina (HPA), which is finding increasing use in lithium-ion batteries. High brightness kaolin is typically of greater value.

Meanwhile, halloysite is used in the high-grade ceramic industry, petroleum sector as a catalyst for petrochemical cracking, and potential expansion in the manufacture of synthetic sapphires, carbon capture and storage, lithium-ion batteries, and in improving the handling and performance of concrete.

To top it all off, there is still substantial potential for the company to grow Cloud Nine further as the mineralisation remains open in all directions.

Coming up

With bulk samples of kaolin material delivered to potential customers, the company will now enter into negotiations for potential offtake.

This will include options to supply short-term products, as well as supplying value-added processed kaolin and halloysite products in the longer term.

Excavation of the recent test pit has provided the company with valuable information to further refine preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions.

Latin Resources ASX LRS
Latin’s bulk sample test pit showing thin colluvial cover and white kaolinitic saprolite clays. Pic: Supplied

Material samples will also assist with further testing and analysis to continue improving the understanding of the deposit including the overlying material.

Additionally, a preliminary desktop environmental study has been undertaken on the Cloud Nine Project site.

Outcomes of this study will be used by Latin Resources to inform the scope of work required to support the pathway to apply for the relevant environmental approvals in support of the project.

This information is being factored into an updated forward work plan to support the development of the Cloud Nine deposit.




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.