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