Latin Resources Ltd (ASX:LRS) has kicked-off its maiden aircore drilling of the Noombenberry Halloysite-Kaolin Project, east-southeast of Merredin in Western Australia.
This comes after initial reconnaissance prospecting along strike confirmed bright white kaolinite dams an estimated 15 kilometres to the northeast within the company’s new tenement applications.
Fully-funded to advance project
Latin Resources executive director Chris Gale said: “We are all very excited to have our maiden aircore drilling campaign underway at Noombenberry, where we are testing the extent of our known high-quality kaolinite-halloysite occurrence.
“Drilling is progressing very well, with geological logging identifying good intersections of white kaolinitic clays in the early drilling.
“We will continue to drill right up December 20, infilling our drill pattern where we see good kaolin intersections in the logging.
“We are fully-funded to advance the Noombenberry project at a time where there is strong and broad global demand for high-quality kaolin products.
“The Noombenberry project has the added benefit of sub-cropping high-quality material, which will have a significant positive impact on any future project economics, should we define sufficient material to support development.”
Globally scarce commodity
Noombenberry, which hosts halloysite and kaolin, offers a particularly compelling opportunity for Latin Resources as halloysite is a globally scarce commodity, with strong demand drivers.
The global market for quality kaolin product is very established, kaolin being necessary for the manufacture of paper, ceramics, porcelain, cement, paint and polymers.
Primary main markets for halloysite are ceramics, batteries, supercapacitors, the construction industry and the petroleum industry as a catalyst for fluid catalytic cracking.
Further, emerging markets are also developing such as nanotube technologies and cancer therapeutics.
Gale previously noted: “High-grade halloysite-kaolin producers globally are in decline and the product is finding more uses in both technology applications such as EV batteries, medical applications and as well as industrial storage of carbon and hydrogen and as a concrete additive.
“Hence we are fairly excited to be beginning exploration of this potentially significant project.”
Buoyed by Andromeda’s progress
Latin Resources is also encouraged by the success of fellow halloysite-kaolin explorer Andromeda Metals Ltd (ASX:ADN).
That company’s market cap has increased from $13 million when it first began exploring the Great White Kaolin Project in South Australia in 2018 to around $250 million post the publication of a PFS study on the project outlining the economic model for a proposed mine and currently sits at $580.6 million.
Andromeda’s shares last traded at 27 cents, after hitting a new 13-year high of 36.5 cents on November 23 and since the start of September shares have risen from 4.5 cents.
In comparison, Latin’s market cap is approximately $31.9 million and shares last traded at 3.1 cents
Since the market close of 1.5 cents on November 2, Latin shares have traded up to a new 12-month high of 4.3 cents on November 27 and last traded at 3.1 cents.
Initial drilling
Latin Resources will complete an estimated 2,500-3,000 metres of shallow aircore drilling to confirm the extents of a known kaolinite-halloysite occurrence.
The initial phase of drilling will be completed in a regular 400 x 400 metres grid pattern, with a second phase of off-set infill drilling to a nominal 200 x 200 metres pattern focusing on thicker zones of kaolinite development, to be completed should time permit.
Any unfinished areas of infill drilling will be completed early in 2021.
Latin Resources has additional capacity within the existing approvals to extend the drilling campaign as required.
Samples for detailed tests
Reconnaissance prospecting of ‘target dams’ identified in aerial photo mapping, has confirmed the presence of sub-cropping bright white kaolinitic clays and kaolinised granite, some 15 kilometres along strike to the northeast of the known halloysite-kaolinite occurrence, within new tenement applications lodged by the company.
Bright white kaolinitic clays and kaolinised granite in dam walls at new areas to the northeast.
Four sub-outcrop samples of this bright-white material have been collected from two specific sites and submitted for detailed test-work along with the composite samples from the aircore drilling.
Composite samples from the aircore drilling will be sent to laboratories in Perth and Adelaide where they will undergo detailed test-work, including;
➢ Brightness testing;
➢ Definitive clay mineral species quantification via a combination of X-Ray Diffraction; and
➢ Spectral scanning, along with other elemental analysis via X-Ray Florence.
Results from test-work are expected from the laboratory in January 2021.