Latin Resources Ltd (ASX:LRS) continues to advance its lithium strategy in Argentina, and has now attracted a Speculative Buy rating from Resource Capital Research.
The following is an extract from the report.
Focused on near-term lithium production in Argentina
Latin Resource's has emerged from a period of transformation with a portfolio that includes strategic hardrock lithium projects in Argentina and First Quantum as a JV partner at the Ilo Sur copper project in Southern Peru.
Lithium concessions include historic spodumene production and exciting potential for large scale, high grade discovery (drilling 4Q17 10,000m), potential for fast track resource definition 1Q18 and production at a third party processing plant from 2020.
Investment Points
- Mineral exploration and development company focused on lithium and cobalt in Argentina, and copper in Peru.
- Southern Peru copper belt is a major copper producing region. LRS has strategic exposure through a JV with First Quantum for Ilo Sur and a 43% stake in TSX.V:WMR for Ilo Este and Ilo Norte projects. Projects are proximal to power and key transport infrastructure - rail, road and port.
- Ilo Sur Copper Project (100/49/20/0% LRS) – potential large porphyry copper target interpreted from geophysics. Global copper producer First Quantum Minerals (TSX:FM) JV partner. LRS free carried.
- LRS holds over 100,000ha in Argentina prospective for hardrock lithium pegmatite. Drilling San Luis 4Q17 (10,000m); potential resource 1Q18.
- Geminis Lithum Mine (San Luis district, Argentina) acquired (binding LOI Aug '17): historic high grade lithium (spodumene) production. Potential for fast track, small scale production from 2020.
- Turnkey engineering company appointed by LRS to develop flowsheet for spodumene concentrate production at San Luis.
- Guadalupito mineral sands project (100% LRS, Peru): World class resource 1.1bt @ 6.1% Heavy Mineral (HM); conceptual exploration target 4.5bt @ 6.1% HM. Very large and shallow deposits. PFS stage. Seeking partner.
- Global lithium-ion battery capacity is expected to increase 521% from 2016 to 2020. Lithium battery offtake is expected to reach 374,000t LCE by 2025 up from 64,000t in 2015, driven by EV and grid storage.
Share price catalysts
- Fast track exploration and development milestones for lithium projects in Argentina - drilling 4Q17 (10,000m);
- Potential resource 1Q18;
- PFS 2H18;
- Potential drilling La Rioja cobalt project 1H18;
- Ongoing copper exploration in Peru; and
- Potential sale of Guadalupito.