Australia-based Latin Resources (ASX: LRS) has reported an initial resource estimate for its Colina hard rock lithium deposit in Brazil after just 10 months of drilling.
The deposit, part of its Salinas project in Minas Gerais state, holds 2.1 million tonnes of indicated resource grading 1.21% lithium oxide for 25,100 tonnes of Li2O (or 60,000 tonnes lithium carbonate equivalent), plus 11.2 million inferred tonnes grading 1.21% Li2O for 135,200 tonnes of Li2O (or 334,000 tonnes LCE).
The resource used a cutoff grade of 0.5% Li2O and was based on assay results from 47 diamond drill holes (out of 57 holes drilled at the project so far) totalling 10,528 metres.
In a news release, Tony Greenaway, Latin Resources’ geology manager, described the results as an “outstanding achievement.”
The resource is contained in near-surface pegmatite bodies that remain open along strike to the north and the south, and extend down to a depth of over 350 metres.
Drilling began earlier this year and in October, the exploration company engaged SGS to compile a JORC-compliant resource estimate, as well as a wider exploration target range.
“The maiden JORC resource is a significant milestone for Latin Resources,” commented executive director Chris Gale in a news release. “We are very excited by the immense upside in the potential resource size… The exploration team led by Tony Greenaway and Pedro Fonseca in Brazil have accomplished a fantastic result for the company in a short period of time.”
The company also completed drilling at its Colina West prospect, situated 500 metres west of the wider Colina deposit. Here, thick high-grade spodumene pegmatite bodies were intersected in drill hole SADD033, with three other holes intersecting the newly identified pegmatite swarm. Assay results for this discovery are pending.
Colina, which is wholly owned by Latin Resources, is part of its flagship Salinas lithium project, located 10 km outside of the town of Salinas. The company’s drilling program explores a region of Brazil that contains 100% of the country’s official lithium reserves, according to Latin Resources’ website.
“The (resource estimate) proves that the Colina deposit is a significant discovery and will be the platform on which the company will grow its resource inventory through further drilling in 2023,” Greenaway said.
“The company is now very focused to continue to grow our lithium resource…as well as complete our feasibility studies to fast track development of a very special lithium project in Brazil,” Gale added.
Latin is planning to have eight drill rigs on site for an “aggressive” 65,000-metre drilling campaign scheduled to begin in January and to be carried out throughout the year. The program will consist of resource definition drilling, infill drilling, and reconnaissance drilling targeting the greater Colina deposit, as well as Colina West and Colina South. The company hopes to make its next discovery during this campaign.
The company also announced an exploration target range (which is not a resource) of 13.5 to 22 million tonnes with a grade range of 1.2% to 1.5% Li2O.
Latin Resources shares were trading at A12¢ on Friday within a 52-week range of A2¢ and A23¢. The company’s market capitalization is A$254.70 million.