Latin Resources Ltd (ASX:LRS) has begun multiple workstreams to advance the Cloud Nine Halloysite-Kaolin Deposit in Western Australia toward production, simultaneously undertaking a resource upgrade, trial mining for bulk sampling and offtake qualification testing.
LRS has commenced large-diameter diamond geotechnical drilling at the deposit, designed to deliver higher confidence levels in the current inferred JORC-compliant resource while also providing data for mine design and supporting the company’s pre-feasibility study.
Core samples from the drilling will be used for bulk density test-work – sourced from several representative units across Cloud Nine – and provide samples for metallurgical test-work.
“Significant step forward” for Cloud Nine
“It is an exciting time for the project, with the first diamond drill core coming out of ground this week, work underway in the background to upgrade the current inferred JORC resource and multiple study pathways advancing,” Latin Resources exploration manager Tony Greenway said.
“The submission of the POW application for the trial mining test-pit and commencement of other approvals-based work is a key milestone for the project.
“We have been in detailed discussions with a number of potential offtake partners for both Cloud Nine kaolinite and halloysite products, and the shipment of bulk product samples from the planned test-pit will be a significant step forward.”
LRS has already submitted permits for trial mining via said small test-pit, which will provide an opportunity to collect a large sample for bulk metallurgical testing and provide product samples to potential offtake partners for qualification test work.
Contractors have also been mobilised to Cloud Nine to complete detailed topographical and aerial surveying.
The data will be used to create a detailed three-dimensional Digital Terrain Model (DTM) of the ground surface, with which Latin Resources will design the test-pit, detailed longer-term mine design, and infrastructure planning as part of ongoing technical studies.
Cloud Nine deposit holds an inferred JORC resource of 207 million tonnes kaolinised granite, including a sub-domain of 50 million tonnes grading at 6% halloysite, making it one of the largest undeveloped kaolin-halloysite deposits in Australia.