Latin Resources Limited
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What is the significance of Latin Resources recent developments in the Salinas Lithium Project?
Latin Resources Limited (ASX: LRS, FRA: XL5) has recently revealed substantial developments in its Salinas Lithium Project, showcasing a Tier 1 Resource with exceptional lithium oxide (Li2O) content. This resource expansion holds significant implications for the company's future prospects.
Tier 1 Resource at Salinas Lithium Project
The Salinas Lithium Project has delivered impressive results, with a Tier 1 Resource containing approximately 63. 5 million tonnes (Mt) at an outstanding Li2O grade of 1. 3%. This discovery solidifies Latin Resources Limited's position as a key player in the lithium market.
Fog's Block Mineral Resource Estimate (MRE)
Within the Salinas Lithium Project, the Fog's Block MRE has unveiled a substantial lithium resource, ranging from 7.
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0 Mt to 18. 0 Mt at Li2O grades between 0. 8% and 1. 1%. This finding demonstrates the project's potential for consistent high-grade lithium mineralization.
Colina MRE
Further contributing to the project's significance is the Colina MRE, which stands at a remarkable 70. 3 Mt with a Li2O grade of 1. 27%. This Global Resource includes the Fog's Block, resulting in a comprehensive overview of the project's potential.
Robust Resource Growth Potential
The Salinas Lithium Project has shown substantial growth potential, with an estimated resource base increase of 41% from 45. 2 Mt to 63. 5 Mt. Furthermore, a substantial 65% of this resource is classified under the JORC Measured and Indicated categories.
Increased Drilling Activities
A total of 198 drill holes, covering an impressive 64,769 meters, have been incorporated into the Mineral Resource Estimate. This represents a significant increase compared to previous drilling efforts, emphasizing the project's expansion potential.
Positive Economic Implications
The increase in the Measured Resource grade by 11%, from 1. 34% to 1. 47%, bodes well for the project's economic viability. The robust resource growth could have a substantial positive impact on the project's economics, with the completion of the Definitive Feasibility Study (DFS) expected around mid-2024.
Ongoing Exploration and Development Plans
Latin Resources Limited has outlined a comprehensive plan for the continued growth of the Salinas Lithium Project:
Colina Deposit: An ongoing resource drilling program is set to continue into Q1 2024, focusing on infill and extensional drilling to improve JORC resource categories. The program will also target extending spodumene mineralization at the existing MRE down dip, with Planalto yet to be drilled.
Fog's Block Deposit: Opportunities for resource extension exist through additional drilling along strike and at depth. The presence of untested spodumene-bearing pegmatites at Fog's East offers further exploration potential, with an ongoing program scheduled for 2024.
Definitive Feasibility Study (DFS): The increase in the Global Mineral Resource Estimate will allow for planning a phase 3 extension and expansion to the phase 1 and 2 production profile, which will be evaluated in the DFS due for completion in mid-2024.
Positive Economic Indicators
The Preliminary Economic Assessment (PEA) for the Colina Lithium Project showcases impressive economic indicators:
Net Present Value (NPV) 8: A$3. 6 billion, post-tax.
Internal Rate of Return (IRR): 132% post-tax.
Payback Period: Just 7 months from the start of production (mid-2026).
All Sustaining Cost (AISC): US$536/t spod, CIF China.
A Path to Sustainable Production
Latin Resources Limited is committed to a sustainable mining approach, with a focus on delivering high-quality Li2O concentrates while meeting stringent ESG (Environmental, Social, and Governance) standards. The company's phased mining plan and sustainable practices contribute to a responsible approach to lithium production.
The Salinas Lithium Project's expansion potential and robust economic indicators are poised to bolster Latin Resources Limited's position in the global lithium market. With ongoing exploration and development plans, the company is well-positioned to capitalize on the growing demand for lithium in the years to come.
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