Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has confirmed a third major spodumene discovery at its Salinas Lithium Project in Brazil, further bolstering the company’s confidence of its potential to host a world-class lithium resource.
The discovery, known as Planalto, has been confirmed by high-grade assay results from drill hole SADD223, some 1.8 kilometres southwest of the Colina mineral resource estimate (MRE).
Strong results at Planalto
The SADD223 drill hole intersected spodumene-rich pegmatites, consistent with the magmatic system of the Colina Deposit. The Planalto pegmatites are composed of up to 20% spodumene.
Strong results from SADD223 include 9.25 metres at 1.21% lithium oxide (Li2O) from 395.29 metres and 16.14 metres at 1.29% Li2O from 425 metres, including 7.14 metres at 1.63% Li2O from 434 metres.
These results demonstrate that there is abundant coarse-grained, lithium-bearing spodumene in the area.
Meanwhile, Latin Resources is making strides in its 2024 strategy.
Environmental permitting in train
The company ticked off a key regulatory requirement with the submission of its Environmental Impact Assessment (EIA) and Report (EIR), collectively known as EIA-RIMA, in December last year.
The submission is a critical step towards obtaining the environmental permitting and mining licensing necessary for a final investment decision (FID) by the fourth quarter of 2024.
On the offtake front, the company has received firm bids from tier-one mining companies, converters, battery manufacturers and metals trading houses.
Latin also anticipates an update on its mineral resource estimate and definitive feasibility study (DFS) in the second quarter of 2024.
In corporate news, the company has appointed Michael Drake as vice president of Development – he brings more than 25 years of experience in projects and operations.
"I am extremely excited by the progress we have made to date,” managing director Chris Gale said.
“This past year has been a transformative period for our company. We have achieved significant milestones that not only reflect our commitment to excellence but also underscore our potential for future growth.
Major upgrades and increases
“2023 was a busy year for our Brazilian exploration team, resulting in a series of major upgrades and increases to our mineral resource of now over 70 million tonnes.
“We also published a very compelling PEA which detailed a strong $3.6 billion NPV with exceptionally low capex and operating costs.
“The lodging of our Environmental permits for the Salinas Project is a significant development milestone. The submission highlights the excellent sustainability principles that will be employed and the benefits for local, provincial and national stakeholders.
“We thank our team and supporting consultants for their efforts over the past 18 months to deliver an incredibly high-quality EIA-RIMA. In addition to the EIA-RIMA, development activities are progressing at pace, aligned with Latin Resources’ objective of delivering first production by mid-2026.
“We are very pleased to have secured and appointed Mike Drake as our VP of Development. Mike adds an incredible wealth of development experience to enable Salinas to be taken into production.”
Salinas – the year ahead
The Salinas Project has shown remarkable progress – the campaign has drilled more than 209 diamond holes covering 70,459 metres.
The company plans to continue its exploration and development success into 2024, focusing on the Colina and Fog’s Block deposits and the new Planalto prospect.
“We are poised for continued growth and success and would like to thank shareholders for their continued support,” Gale concluded.