Drilling to start: can $29M LRS follow in the footsteps of $650M capped ADN?

By Jonathan Jackson. Published at Nov 26, 2020, in Mining

Latin Resources (ASX:LRS) announced this morning that it will commence its maiden aircore drilling program at its Noombenberry Halloysite-Kaolin project in Western Australia, in early December.

LRS will be drill testing one of Australia’s few known occurrences of ultra-high-grade halloysite – a naturally occurring nanotube.

Drilling is designed to outline the extent of a known sub-outcrop occurrence of high quality kaolinitic clays and halloysite.

Kaolinitic clays and halloysite were identified in previous sampling, where results confirmed up to 38.9% kaolinite and 15% halloysite by weight in the 45 – 180um size fraction.

The fully funded drilling campaign will comprise of an estimated 2,500m of air-core drilling.

The initial phase of drilling will be completed utilising existing farm and fence-line tracks, with a second phase of infill drilling planned for early in the new year (2021).

The Company has additional capacity within the existing approvals to extend the drilling campaign as required.

Read: LRS to Drill for Halloysite, Hoping to Emulate Some of ADN’s 700% Run

Following the drilling, composite samples will be sent to laboratories in Perth and Adelaide where they will undergo detailed test work including; brightness testing, definitive clay mineral species quantification via a combination of X-Ray Diffraction (“XRD”) and spectral scanning, along with other elemental analysis via X-Ray Florence (“XRF”).

“We are all very excited to have secured an appropriate drilling contractor and to be getting our maiden air-core drilling campaign underway at Noombenberry, where we will be testing the extent of our known high-quality kaolinite-halloysite occurrence,” Latin Resources Executive Director Chris Gale said.

“We are fully funded to advance the Noombenberry Project at a time where there is strong and broad global demand for high-quality kaolin products. The Noombenberry Project has the added benefit of sub-cropping high-quality material, which will have a significant positive impact on any future project economics, should we define sufficient material to support development.”

LRS’s WA project has very similar geology to Andromeda Metals (ASX: ADN)

Halloysite projects in South Australia.

Andromeda has delivered a 700%+ return since September 2020 and is currently capped at over $620M. It is developing one of the world’s largest known high purity halloysite-kaolin reserves and resources in South Australia.

Andromeda’s rise suggests that Noombenberry could emerge as a significant share price catalyst for Latin Resources, just as Oakdale Resources (ASX: OAR) has been the beneficiary of Andromeda’s success so far.

Oakdale’s Gibraltar Project is adjacent to Andromeda’s in this premier halloysite-kaolin region.

Its shares were 20% higher to 2.5 cents last week with a market cap of approximately $40.5 million after it announced the presence of kaolinite and halloysite minerals after completing an aircore drilling program at Gibraltar.

LRS is confident it can move in a similar direction and will soon understand more about the potential of its ground in this drilling campaign.

Read: Multiple share price catalysts on the horizon for Latin Resources


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X