After the global COVID pandemic forced Latin Resources (ASX: LRS) to shut down its exploratory work in the face of an uncertain future, a new business gong for boss Chris Gale has signalled a powerful company turnaround.
Gale’s ability to guide the company through the adversity and into its huge Salinas lithium project in Brazil recently earned him a prestigious Asia Pacific Business Leader award for 2023-2024.
The managing director founded the company in 2008 and under his leadership, Latin initially explored for copper in Peru before pivoting to lithium. The company originally searched in Argentina for the “white gold” before a decision was made to refocus its attention to the Brazilian State of Minas Gerais.
But after spending a year mapping prospective ground in the area in 2019, the shock emergence of COVID forced the company to halt its exploration activities until staff were able to return midway through 2021 and resume groundwork in a bid to define the best drill targets.
Then, with Latin’s first drill program at its Colina deposit within the Salinas project, Gale liked what he saw from the first drill-core samples and knew management had chosen wisely in its pursuit of Brazilian lithium. Following a succession of mineral resource upgrades, management has now defined a 70.3-million-tonne resource at 1.3 per cent lithium oxide at the Salinas project. The resource makes it the biggest hard rock lithium deposit in the former gold-mining province of Minas Gerais.
It is very pleasing to be recognised in the Asia Pacific Business Awards 2023-2024, and I see this award as recognition for the whole team at Latin who are constantly striving not just to build our business, but to develop the region in which we operate. I am proud to be developing a world-class sustainable lithium operation and we are determined to turn Lithium Valley Brazil in Minas Gerais into a sustainably green economic force, one that both nurtures and supports the local communities.
Latin Resources managing director Chris Gale
The Salinas project consists of the Colina resource of 63.5 million tonnes at 1.3 per cent lithium oxide that Latin plans to mine via a single open pit, in addition to the Fog’s Block deposit of 6.8 million tonnes at 0.9 per cent lithium oxide.
Recent results at Colina from infill drilling is likely to see an upgrade to the resource’s classification as the tighter-spaced drill-holes provide more confidence in the continuity of the mineralisation within the deposit.
Latin is planning to release a further resource upgrade for Colina this quarter, helped by many solid drill hits revealed last month in the deposit’s Central zone. It included 32.92m at 1.62 per cent lithium oxide from 325.19m including 27.81m at 1.8 per cent, 24.81m going 1.53 per cent from 355.19m and 21.66m at 1.47 per cent from 294.74m.
The company expects its definitive feasibility study (DFS) to be revealed to the market in the third quarter of this year and it will include the project’s first mineral reserves.
Latin recently defined 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 company expects to make a final-investment-decision (FID) later this year and if the decision is a positive one, the construction process will likely start in the first quarter next year. Production would then be expected to begin mid-2026.
Not only is Latin intent on building a world-class lithium operation in Brazil, it is also committed to building the community in the region where it operates. Management has set in place an educational program in local schools on mining and environmental issues, in addition to supporting a local youth training program to create skills needed for the growing lithium industry.
It has also invested in the local flood fund aimed at building a levy wall to protect the town from future river overflows.
Asia Pacific Business, with the motto, “A leader is one who knows the way, goes the way and shows the way”, undertakes months of research with nominations and rounds of evaluation and voting before choosing its award winners. It says it follows the principle of selecting the “best among the best”.
The awards recognise companies headquartered in the Asia-Pacific region and acknowledges entrepreneurs and senior executives for their professionalism, performance and leadership in uncertain times.
Under Gale’s stewardship, Latin has emerged as a true force in the critical minerals space and his award is recognition for navigating the company through its bumpy ride.
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