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Latin spies more lithium at new Brazilian prospect

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Spodumene-rich pegmatite core collected from Latin Resources’ Salinas lithium project in Brazil.
Camera IconSpodumene-rich pegmatite core collected from Latin Resources’ Salinas lithium project in Brazil. Credit: File

Mineral explorer Latin Resources has struck a swarm of lithium-bearing pegmatites during diamond drilling at a new prospect within the company’s Salinas lithium project with one thick intersection measuring nearly 19m.

The 18.75m hit in Brazil’s Minas Gerais region was encountered from 321m downhole at the company’s newly coined Colina West prospect, 500m west of ongoing resource drilling at the project’s Colina prospect.

The same hole intersected a series of 17 separate pegmatites from a depth of 62.84m downhole with several intervals showing good spodumene mineralisation.

Processing of the drill core is underway including detailed geological and structural logging and sampling.

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With the discovery of spodumene well outside the current resource definition drilling area the company says it bodes well for the prospectivity of the wider project area and alludes to potential resource upgrades.

Last week Latin engaged leading mining consultant SGS Geological Services to table a mineral resource for Colina along with performing metallurgical test work and a preliminary economic assessment.

Latin expects its maiden mineral resource estimate by the end of the calendar year and delivery of the economic assessment by March.

The company aims to move forward with more definitive studies providing a successful completion of the initial economic assessment.

In addition to the standout spodumene hit, Latin has highlighted through regional mapping a third outcropping pegmatite system further to the west. The company also believes there is potential for the convergence of the Colina and Colina West pegmatite systems.

We knew there were additional parallel pegmatite systems out to the west. Getting these spodumene intersections confirms the very high prospectivity of the wider project area.

Latin Resources Exploration Manager, Tony Greenaway

“While we will continue to focus on the resource definition drilling for Colina to ensure that we deliver our maiden JORC Resource as planned, we are preparing an additional drill site at Colina West for drill testing in due course.”

Resource definition work at Colina is steadily advancing with 34 holes complete and another three underway for a total of 7300m.

The strong calibre of results continues to flow from the lab including 20.4m at 0.97 per cent lithium oxide from 120.6m and 5.81m at 1.53 per cent from 188.93m from one hole.

Another hole intercepted 20.09m at 1.35 per cent lithium oxide from 71m, including a couple of higher-grade intervals of 2m at 2.17 per cent from 73m and 2.32 per cent from 80m.

Similarly, many of the previously reported holes feature multiple pegmatite zones with 1m-sample grades going as high as 4.22 per cent lithium oxide.

According to US Geological Survey data, Brazil has one of the fastest growing reserves of lithium in the world and the country’s total endowment has it pegged in seventh place — with Chile and Australia taking the first and second ranks respectively.

In 1996, Brazil hosted a mere 910 tonnes of the metal, increasing by over 100-fold to 95,000 tonnes this year.

Despite the impressive increase, the absolute total is less than half a per cent of total reserves and is overshadowed by Chile’s 9.2 million tonnes on the western side of South America.

Over the same period, Chile’s reserves grew seven-fold whilst Australia’s increased 15-fold to 5.7 million tonnes.

Notably, Chile’s lithium comes in brine form whereas Brazil’s is mostly found in hard rock minerals such as spodumene, as is also the case in Australia.

In 2017, contemporary explorer, Sigma Lithium discovered a swarm of deposits dubbed Grota do Cirilio, about 75km south-east of Latin’s latest lithium intercept and within a similar geological setting as seen within its own project, according to the company.

In June, Sigma boosted its mineral resource at Grota do Cirilio to 86Mt at 1.43 per cent lithium oxide, subsequently hailing it as the “largest” and “highest quality hardrock” lithium deposit in the Americas.

Interestingly, Latin’s appointed consultant SGS also provided technical services for Sigma’s nearby deposit.

Whilst Grota do Cirilio might be the largest deposit in that part of the globe, it would be more akin to one of WA’s medium-sized deposits such as Mineral Resources’ Mt Marion of 72.9Mt at 1.37 per cent lithium oxide.

Whilst lithium in Brazil is still in its formative years if Latin keeps laying down thick lengths of core it might help the country climb the lithium ladder.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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