Latin Resources Ltd (ASX:LRS, OTC:LRSRF) wholly owned subsidiary ESG Minerals Pty Ltd is acquiring the Gibraltar halloysite-kaolin project in South Australia from Oar Resources Ltd (ASX:OAR).
The parties entered into a binding tenement sale agreement for the sale of a portion of the EL6506 tenement, spanning around 80 square kilometres, for $500,000 cash.
Oar Resources will retain the balance (236 square kilometres) of the 316 square kilometres licence area which is prospective for rare earth elements (REE).
Significant areas of high-grade halloysite were identified by Oar Resources during its 2021 aircore drilling program within the southwest portion of the tenement that it is now divesting.
ESG Minerals will use the area that contains the high-grade halloysite for the ongoing development of its methane emission reduction and carbon capture technologies.
Halloysite for methane emission reduction
Latin is undertaking a research project with CRC CARE — an independent organisation that performs research, develops technologies and provides policy guidance for assessing, cleaning up and preventing contamination of soil, water and air — to investigate the use of halloysite in the reduction of cattle methane emissions.
The three-year $3.2 million research project aims to modify Australian halloysite/kaolinite minerals to develop material-based emission reduction technologies, including feed supplements for cattle, spreadable material and halloysite shale for inhibiting and adsorbing methane in this growing industry.
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