Latin Resources Ltd (ASX:LRS) has underscored the scale potential of its Salinas lithium asset in Brazil, expanding the project tenure by a whopping 367% and lining it up for ambitious resource growth.
The critical minerals explorer has lodged 17 new applications — covering nearly 30,000 hectares — over land with strong lithium pegmatite potential in the highly prospective Bananal Valley district.
All of the tenements lie beyond Latin’s maiden 13 million tonnes mineral resource and large-scale exploration target (released to the market just two months ago), meaning today’s extension opens the door to some valuable resource growth opportunities.
In a move that underpins Salinas’ future development, Latin has also expanded an option agreement to acquire more tenure south of the cornerstone Colina deposit — an area that boasts further extension potential.
It won’t be long before shareholders get a better sense of what’s in the ground —in fact, Latin already has the drill bit spinning as part of a 65,000-metre diamond drilling program, designed to expand Colina’s lithium resource to the south and the west.
In the meantime, a regional team will carry out first-pass reconnaissance to better understand the lithium opportunity within Latin’s extensive new landholding.
Potential for world-leading lithium asset
Explaining the key expansion, Latin geology manager Tony Greenaway said Salinas’ flagship deposit was a tried-and-true example of the district’s vitality.
“Our proprietary knowledge gained over the past 12 months throughout the resource definition drilling of Colina, coupled with our understanding of the wider regional controls to mineralisation in this area, has enabled us to identify these opportunities to secure what we believe are favourable exploration areas for the company,” he explained.
Managing director Chris Gale echoed his comments, noting that Salinas had potential to become one of the world’s leading lithium projects thanks to the expanded tenement package.
“With the recent publication of our maiden JORC lithium resource, the aggressive 65,000 metres drill program planned for 2023 and feasibility studies well underway, we are extremely excited about this year for Latin Resources,” he concluded.
Boots on the ground in the north …
Latin’s new applications mean its landholding in Brazil’s iconic Bananal Valley will surpass 38,000 hectares — a major stake in the highly prospective lithium district.
The tenements are primarily situated to the north, beyond the boundaries of Colina’s 13.3 million tonnes maiden resource and 13.5-22 million tonnes exploration target range — figures that show Latin is just scratching the surface at Salinas.
Ground truthing, geological mapping and regional-scale sampling will form the basis of Latin’s initial exploration campaign, designed to chart the potential of these greenfield prospects and uncover what value they can add to a future resource update.
The explorer could also conduct airborne geophysical and remote sensing surveys over specific areas of interest, charting the course for drill targeting and further expansion.
… And more upside to the south
Beyond its newfound tenure, Latin has also updated an option agreement for a tenement south and contiguous with the Colina deposit.
The deal expands an existing agreement, opening up two more areas for acquisition between now and the end of July and proliferating the resource growth opportunity.
Latin acquired the first part of this tenement in late January for US$200,000 — it can now pick up the second and third components for the same amount in May and July.
Before it hits the milestone payment dates, Latin plans to conduct extra reconnaissance to determine the area’s lithium prospectivity.