Latin Resources has increased its slice of Solis Minerals to 17.79 per cent after committing $3 million at 55 cents per share as part of an $8 million capital raise to fund exploration at the latter’s new Jaguar lithium project. The cornerstone investor now holds about 13 million shares in Solis and management says the project hosts significant prospective pegmatites. The play increased Latin’s holding by 4.66 per cent.
Recent rock-chip samples at Jaguar recorded 4.95 per cent lithium and a maiden drilling campaign is expected to kick off later this month.
The opportunity for hard rock lithium in Brazil is significant and the early mapping of the extensive pegmatite body at Jaguar shows that Bahia State has potential to become a new lithium province. This investment also presents an exciting opportunity for Latin to continue to support the growth of the lithium industry in Brazil, which we believe is on track to be one of the top lithium producing countries in the coming years. Latin Resources managing director Chris Gale
The company is also getting its hands dirty at its own ground in Brazil and is on the cusp of delivering its next mineral resource update after yesterday receiving the final batch of assay results from its latest infill drilling program at its Colina lithium deposit.
Management says highlights from the results include 14.70m going 1.72 per cent lithium from 133m and 13.24m grading 1.89 per cent lithium from 168m.
Latin has now punched through 135 holes for 39,033m as part of its mammoth 65,000m infill drilling campaign at its Salinas project. It means the next resource update will encompass an additional 88 holes and 28,505m over and above the 47 holes and 10,528m used to establish the company’s maiden resource estimate from December last year.
The Colina deposit already has a resource of 13.3 million tonnes at 1.2 per cent lithium oxide and the recent drilling has been targeting an increase in the overall resource, in addition to beefing up the indicated resource category, which stands at 2.08 million tonnes at 1.21 per cent lithium.
With funding for its next round of drilling squared away, Solis could do nothing but sit back and smile as its stock defied the usual gravitational pull of a capital raise and roared past the 55 cents mark to touch 97.5c during intraday trading.
That is an almighty climb for a company that just a fortnight ago was bouncing around the 13c mark and it appears that with the confidence of its cornerstone investor, if it is not already off to the races it is certainly picking out its outfit.
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