Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has made significant progress during the September quarter at its flagship Colina Lithium Project in Brazil, including the announcement of key outcomes of a technical and financial study, which demonstrated an NPV (after-tax) of A$3.6 billion.
The Preliminary Economic Assessment (PEA) has projected a total life of mine (LOM) revenue of A$12.6 billion, with free cash flow of A$6.8 billion, average LOM annual production of 405,000 tpa spodumene concentrate and phase 1 capital expenditure of US$253 million with a payback period of only 7 months.
Read: Latin Resources PEA reveals A$3.6 billion NPV, 132% IRR, A$12.6 billion revenue lithium project
Latin’s DMS (dense media separation) test work undertaken on Colina Deposit ore has confirmed the ability to produce a high-grade, low impurity spodumene concentrate. A remarkable lithium stage recovery of 93.1% was achieved from the coarse sample to a spodumene concentrate grading 5.5% Li2O, utilising pilot scale DMS equipment.
Latin has completed almost 40,000 metres of drilling across 118 holes since January 2023, as part of the broader 65,000 metres drilling program.
Positive diamond drilling assay results were returned, confirming a new pegmatite discovery located around 3 kilometres southwest of the Colina Deposit.
Proposed Colina Mine open pit and infrastructure layout.
Latin executive director Christopher Gale said: “This has been an instrumental quarter for Latin Resources, with the release of our first feasibility study for the Colina Lithium Project in Brazil.
“The preliminary economic assessment exceeded our expectations, demonstrating a low-cost capex and a path for fast tracking to production in 2026.
“The Colina Project is shaping up to be a world class lithium mine, with very low operational costs.
“Successful metallurgical test results released during the quarter helped form inputs for the PEA, as DMS demonstrated an impressive 93.1% stage recovery to a spodumene concentrate grading of 5.5% Li2O.
“Our 65,000m 2023 drilling program continued during the quarter, with assay results confirming a new pegmatite discovery.”
Read: Latin Resources to raise $35 million as it looks to grow Salinas resource into tier-1 lithium global project
Last week, Latin completed a placement to raise $35 million, with funds to expand and accelerate its exploration program at Colina.
The company already has drill rigs mobilised as it looks to 2024. The expanded drill program heading into the new year will run parallel to geotech and hydrogeology works to support the definitive feasibility study (DFS) expected to be announced in H1 2024.
Through the drilling program, Latin also expects to significantly expand the global JORC mineral resource estimate (MRE). Currently, the company’s defined total MRE at its Colina Lithium Deposit is 45.2 million tonnes at 1.32% Li2O, reported above a cut-off of 0.5% Li2O.
Colina mineral resource estimate reported at 0.5% Li2O cut-off grade separated by category.
Gale added: “The Colina Project hosts district scale potential, with drilling working towards a further increase of our existing MRE.
“We were also thrilled to announce that Latin has been added to the MSCI Global Index, which increases our exposure to larger global institutions and the international investment market.
“Latin look forward to bringing further developments from our activities to our shareholders, as we continue to push through our milestones towards production”.
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