Latin Resources (ASX: LRS) is set to deliver a mineral resource upgrade for its Colina lithium deposit in Brazil as soon as this month after wrapping up a major resource definition drill campaign at the operation.
Colina forms part of the company’s Salinas lithium project in the Brazilian State of Minas Gerais and the deposit currently holds an impressive resource of 63.5 million tonnes at a solid grade of 1.3 per cent lithium oxide. With a further 6.8 million tonnes going 0.9 per cent lithium oxide at its Fog’s Block deposit, the wider Salinas mineral resource sits at 70.3 million tonnes grading 1.27 per cent lithium oxide.
Latin released its latest mineral resource estimate for Colina back in December, based on 198 diamond drill core holes for 64,769m. Since then, it has completed a further 106 holes across 28,864m, with some impressive results.
Highlights include a 33.92m hit going 1.93 per cent lithium oxide from 241m, 26.43m at 1.75 per cent from 244m and 29.13m grading 1.65 per cent from 241m. The company has also previously delivered positive results from drilling at Fog’s Block, about 12km south-west of Colina, with peak results of 17.52m at 1.48 per cent lithium oxide from 250.58m and 12.6m grading 1.15 per cent from 173.4m.
Management says its expected improvements in resource categories will directly support the declaration of mining reserves as part of the Colina definitive feasibility study (DFS) that is expected to be released next quarter.
With all the assay results from the extensive infill drilling program now received, the updating of the MRE for our world-class Colina Deposit is underway. Results for the infill campaign have confirmed that Colina is a very consistent deposit, with new results showing very similar pegmatite thicknesses and grades to the existing models.
Latin Resources vice president of operations (Americas) Tony Greenaway
The company recently outlined a preliminary economic assessment (PEA) proposing a 3.6 million tonnes per annum standalone mining and processing operation in two phases, where the economics show an after-tax net present value (NPV) using 8 per cent discount of $3.6 billion and a combined after-tax internal rate of return (IRR) of 132 per cent.
The initial PEA mining plan for Salinas predicted phase one production would kick off in 2026, with an expected second phase set to begin in 2029.
Latin’s exploration focus has now shifted to its Planalto prospect just south of Colina where previous assays delivered positive results. Highlights show a 9.25m section going 1.21 per cent lithium oxide from 395.29m, in addition to 16.14m grading 1.29 per cent from 425m including 7.14m at 1.63 per cent from 434m.
Four rigs are currently operating at Planalto where all four holes completed have intersected the pegmatite swarm at the site. The company also has eight rigs at Colina conducting sterilisation drilling and two rigs undertaking geotechnical drilling, which will be used to develop the deposit’s DFS.
A single drill rig is working on completing regional exploration drilling at its tenements to the south of Colina.
However, all eyes will be on Latin’s looming resource upgrade for its Colina deposit as it continues to deliver impressive results in an area that has now fittingly become known as “Lithium Valley”.
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