Latin Resources Ltd (ASX:LRS) remains in a very positive financial position with sufficient funding available and no debt at the close of its half-year ended June 2021.
The company acquired the Noombenberry/Cloud 9 project to develop while its projects were stalled in South America due to the COVID-19.
During this time, it developed one of the largest kaolin/halloysite deposits in Australia – in just over an 18-month period.
Now that Brazil and Peru are coming out of COVID lockdown, Latin Resources’ teams have been vaccinated and are now “back in business”.
Its team is now focused on Brazil to develop JORC Lithium resources over the next 12 months.
Latin Resources’ most advanced project is its 100%-owned Noombenberry Halloysite-Kaolin Project in Western Australia where it recently defined a maiden 270 million tonnes Inferred JORC resources at the Cloud Nine Deposit.
It is also actively seeking copper-gold targets across a suite of tenements in the highly prospective Lachlan Fold belt in central NSW, copper porphyry targets in southern Peru and hard-rock spodumene lithium projects in Argentina and Brazil.
Noombenberry Halloysite Project
The global kaolinized granite resource contains a total of 75 million tonnes of bright white kaolin product with an ISO-B of 79 or 29 million tonnes of ultra-bright white kaolin product with an ISO-B of 82.
Both are considered high-quality product specification, with potential use for a range of industrial applications.
Within only 18 months of identifying the opportunity for halloysite, given the very shallow nature of the resources, the company has been able to rapidly define this maiden MRE, which has substantial potential to grow, being open in all directions.
In June 2021, the company kicked off its latest campaign of exploration drilling with the aim to infill the existing resource definition drilling to allow for an upgrade of the MRE to JORC Indicated and/or Measured classification, as well as extend the current Cloud Nine MRE to the north for a further four kilometres where the resource remains open.
So far, a total of 359 air core holes were completed for 9,640 metres. Initial sampling has been completed and detailed analysis of the samples is underway.
Results from the initial test work are expected in the fourth quarter of 2021.
BHM Process Consultants have been engaged to help in the development of a detailed process flowsheet for the Cloud Nine Deposit.
Test work is set to commence in the fourth quarter 2021, once the test work process flow sheet has been finalised.
Lachland Fold Belt Copper-Gold Projects
It has started field operations on the Yarara, Burdette and Manildra projects.
Following their recent granting by the NSW Department of Planning, Industry and Environment, work is scheduled to commence on the Boree Creek Copper Gold Project and the Gundagai Nickel-Copper-PGE Project.
Detailed soil sampling has commenced across the Peep O’Day Prospect area, however, with significant rains, sampling has been suspended until the soil is sufficiently dry.
The company has also started regional and project-scale first pass targeting exploration at the Burdette-Manildra project to identify reverse circulation (RC) drilling targets.
At its Boree Creek Copper-Gold Project, it has commenced engagement with key landholders to secure site access and has scheduled the commencement of on-ground fieldwork for the fourth quarter of 2021.
Following the grant of two new tenements and securing land access and other statutory approvals for the Gundagai Project, the company plans to complete regional and project-scale first pass targeting exploration.
Catamarca Lithium Project
It is planning a field reconnaissance visit to its Catamarca Lithium Project in Argentina with its joint venture partner Integra Capital.
This will be followed by a systematic geochemical soil sampling to define and refine drill targets ahead of a proposed drilling program.
Salinas Lithium Project
The compilation and review of historic data at its Salinas Lithium Project in eastern Brazil have highlighted several priority areas.
Initial field observations have been positive, with outcropping spodumene-bearing pegmatites mapped and sampled.
All samples will be submitted for detailed analysis.
Positive financial position
Latin Resources remains in a very positive financial position with sufficient funding available and no debt following the termination of the convertible funding agreement with Lind Partners New York.
In January 2021, it concluded the Lind funding agreement by repaying the debt.
COVID-19 impact in Latin America
The company’s offices in Latin America are now closed and its staff are working from home.
Despite this, there has been no significant impact on the performance, nor the financial position of the group as at end June 2021.
Solis Minerals investment
In May 2021, the company subscribed for 2.7 million shares in Solis Minerals Ltd (TSX-V:SLMN, FRA:08W)’s placement to maintain its position as its largest shareholders with a 24% stake.
Solis plans to use the funds raised to acquire a 100% stake in the 16-square kilometre Mostazal Copper Property in one of the world’s largest copper district in the Atacama