Tightly held Latin Resources' (ASX:LRS) Peruvian explorer partner Zahena has received results from drilling its first hole at Ilo Este.
Assay results received from the first hole from 0-366 metres averaged 0.11% copper (max 0.37%) and 0.11 g/t gold (max 1.2g/t), highlighting a large mineralised system at work.
Drilling by Latin in 2014 had defined a mineralised porphyry that extends over 1.5 kilometres along the strike of the northern intrusive belt alone.
Four holes have now been completed while a fifth is drilling ahead into an untested southern intrusive belt where the geology suggests good potential for higher grades.
Three more holes will follow to continue testing the virgin southern belt. Two more holes will test under-cover potential to the east.
Latin assigned an earn-in option to Compañia Minera Zahena SAC for 70% ownership of its Ilo Este Project for a total consideration of US$1 million cash and exploration work commitments totalling US$3 million.
This included a 11,000 metre diamond drilling program.
Clearly, Ilo Este represents a significant mineralised system, with many areas still to be tested that could host much higher grades that would lead to the exercise of the option and a resource drilling campaign.
Latin is also in line for an exploration success payment of US$5 million should a successful definitive feasibility study at Ilo Este be completed.
Latin has three project areas located in the iron oxide copper gold porphyry district of the Ilo region of southern Peru.
Latin has signed an MoU with First Quantum Minerals over the Ilo Sur project, while a JV partner is sought for Ilo Norte.
Meanwhile, Latin's Chilean Filipina project has near term copper production as it holds mining permits that allow immediate small scale production.
First step at Filipina is a first phase exploration program that will carry out exploration to redefine a Canadian resource into a JORC resource at Caminada prospect.
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