Latin Resources unveils Brazilian lithium strategy

By Trevor Hoey. Published at Mar 1, 2021, in Mining

Latin Resources Ltd (ASX:LRS) has provided an update on its lithium projects and ongoing exploration activities in South America, highlighting its intention to commence significant exploration work on the group’s lithium projects held by its 100% owned Brazilian subsidiary, Mineração Ferro Nordeste.

The projects are located in the Jequitinhonha valley region of Minas Gerais, host to the Eastern Brazilian pegmatite province and home to Sigma Lithium and lithium producer Companhia Brasileira de Lítio (CBL).

As indicated below, the assets collectively represent eleven tenements named the Salinas Lithium Project that host several mapped pegmatites and spodumene occurrences.

The Jequitinhonha valley is a highly underexplored region that currently contains 100% of the official lithium reserves of Brazil.

Latin Resources has appointed local geologists to carry out field work to define drill targets on the Salinas tenements with the company having completed significant field work on the tenements in 2019, locating several occurrences of spodumene never previously known or reported.

The focus will now turn to the well-advanced spodumene tenure which will allow the rapid drill testing of any potential lithium deposit, enabling management to quickly advance to JORC compliance.

The company’s in-country resources will be directed to the Brazilian lithium projects where Latin Resources believe it can effectively and expeditiously execute exploration programs to deliver positive news and results to its shareholders.

Identifying relationships with main Salinas pegmatite

Exploration carried out by Latin Resources in 2019 showed numerous pegmatites were located hosted in schist and showed homogenous spodumene mineralisation.

During this exploration program, the largest exposure of pegmatite visited on the tenement displayed 12 metres of outcrop width, and the visual estimation of spodumene mineralisation was 25%.

The discovery of spodumene mineralisation in what could be associated pegmatites appears to bode well for the future.

The pegmatites cross-cut the rivers with exposure in a general north north-west trend, continuing into the neighbouring tenement to the south.

Further work on the pegmatites will now be followed up to determine their relationship to the Salinas main pegmatite which is 1.5 kilometres north-east.

Management views the 600 metre distance between points in the west and points in the east that show spodumene mineralisation as a good sign for a potential continuous pegmatite field below surface.

Sigma an emerging lithium hydroxide producer in a world class province

Investors looking for other projects in the region that could provide a guide as to what may lie ahead for Latin Resources could find Sigma Lithium (TSXV: SGMA) a useful point of reference.

Sigma is the most active lithium explorer in the region with a world-class lithium resource base which currently stands at 45.7 million tonnes at 1.38% Li2O.

The company is focused on 10 high-grade hard-rock lithium pegmatites, nine of which were past-producing lithium mines, yet have reported over 200 pegmatites within their tenure.

Sigma is in now in pre-construction of its large-scale lithium concentration commercial production plant in Minas Gerais.

Based on the Feasibility Study Report, the Commercial Production Plant will contemplate a capacity of 220,000 tonnes annually of battery-grade “green” lithium concentrate and Sigma will be amongst the lowest-cost producers of lithium concentrate globally.

In relatively close proximity, Companhia Brasileira de Lítio (CBL) is actively mining spodumene pegmatites, producing a spodumene concentrate which is then transferred to a chemical plant in Divisa Alegre, Minas Gerais.

The concentrate is then transformed into industrial-grade lithium hydroxide, a commodity that is forecast to grow in demand given it possesses the qualities required for battery production.

This is a market where Latin Resources sees immense opportunities, particularly given there are limited global supplies of lithium hydroxide.

Indeed, CBL is one of the few companies worldwide with the integrated lithium ore-concentrate-compound technology.

Part of CBL’s underground spodumene mining operation can be seen on the left, while the picture on the right shows an overhead view of the lithium hydroxide facility.

Latin and Integra Capital joint venture starting exploration in June quarter

The joint venture between Latin Resources and Integra Capital is progressing well and exploration work will commence in the next quarter now that COVID restrictions are being lifted in the Province of Catamarca.

Integra will spend up to US$1 million (AU$1.4 million) under the Joint Venture which will underpin an aggressive exploration program on the Catamarca concessions, with the initial aim of delivering a Maiden JORC Resource.

Following the release of a Maiden JORC Resource on the projects, the joint venture focus will turn to project development, including feasibility, engineering and metallurgy studies to produce a lithium spodumene concentrate.

Latin has already developed a high-level scoping study with consulting engineers Primero Group for the Argentinian lithium assets.

Under the JV, Latin will be free-carried through initial exploration with financing for the construction of the processing plant to be in line with percentage ownership between Integra and Latin of the project partnership at the time of the Final Investment Decision.

Commenting on the upcoming work program and the company’s broader strategy in Brazil, executive director Chris Gale said, “We are extremely pleased to start work again on our very exciting Brazilian lithium projects.

"The work carried out in 2019 by our technical team has uncovered some wonderful opportunities in Brazil.

"The more we investigate Minas Gerais, the more we get excited about the huge potential this under-explored region holds.

"This significant time and investment into Brazil marks the start of the company’s lithium strategy to develop valuable lithium projects in a fantastic mining province.

"I am very confident that the company can quickly and effectively execute exploration programs in Brazil which we hope will deliver positive news to its shareholders in a very timely fashion.”


View Our Investment Portfolios


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