Latin Resources Ltd (ASX:LRS) has welcomed its first mineral resource estimate (MRE) for Colina lithium deposit at the 100%-owned high-grade Colina Project in Brazil, and an exploration target with upside potential of 22 million tonnes.
The MRE reveals that the resource for the Colina deposit is 13.3 million tonnes at 1.2% lithium dioxide, reported above a cut-off of 0.5% lithium dioxide with 2.08 million tonnes in the indicated category and 11.17 million tonnes inferred.
Read more: Latin Resources continues consistent lithium results and high recoveries
MRE finalised
In October, the company commissioned Toronto-based independent resource consultants SGS Geological Services to undertake the estimation of a JORC mineral resource estimate (MRE), and a wider Exploration Target (NYSE:TGT) Range (ETR) for the Colina deposit.
The work has been progressed rapidly – SGS has independently estimated the MRE in only 10 months since drilling began in 2022, based on assay results from 47 diamond drill holes for some 10,528 metres of drilling.
Significant upside growth
On top of this, Latin Resources spies significant upside growth potential at Colina, with SGS confirming an independent estimated JORC exploration target range (ETR).
Recent drilling at the Colina West prospect, 500 metres to the west of Colina, has confirmed the continuity of the thick high-grade spodumene pegmatites in one hole, with a further three holes intersecting the newly identified pegmatite swarm. The company awaits assays with interest.
An aggressive 65,000-metre drilling campaign planned for 2023 with the addition of four more drilling rigs for a total of eight on-site, is designed to fast-track rapid resource growth at the Colina and Colina West deposits and underpin a rapid move towards potential future development.
A preliminary economic assessment (PEA) is well underway to allow the fast-tracking of a DFS in 2023.
Executive director Chris Gale said: “The maiden JORC resource is a significant milestone for Latin Resources. We are very excited by the immense upside in the potential resource size as we plan to drill 65,000 metres through 2023.
"The exploration team led by Tony Greenaway and Pedro Fonseca in Brazil has accomplished a fantastic result for the company in a short period of time.
Very special lithium project
“The company is now very focused to continue to grow our lithium resource significantly over the next six months, as well as complete our feasibility studies to fast track development of a very special lithium project in Brazil.”
Geology manager Tony Greenaway said: “We are all extremely pleased with the outcome of our maiden MRE process; the declaration of a 13.3 million tonne resources at a grade of 1.2% lithium dioxide, in just 10 months from the completion of our first drill hole is an outstanding achievement.
“The MRE proves that the Colina deposit is a significant discovery and will be the platform on which the company will grow its resource inventory through further drilling in 2023.
“The potential growth for the Colina deposit is highlighted by the independent exploration target by SGS, which has an upper range of 22 million tonnes at Colina.
“With eight drill rigs scheduled to be on-site from mid-January 2023, we will be aggressively drilling throughout the year, specifically targeting Colina West with resource definition drilling, the Colina deposit itself with resource infill drilling, Colina South and the Salinas South prospect areas with reconnaissance exploration drilling, where we hope to have our next discovery.”