Latin Resources Ltd (ASX:LRS) has expanded its lithium holdings in Brazil to more than 5,350 hectares after exercising its option to acquire tenement 830.691/2017 in the highly prospective Bananal Valley district, creating a lithium corridor that includes the existing Salinas Lithium Project.
Multiple drill targets have already been identified along this new lithium corridor, with results from recent drilling on the acquired project area confirming the presence of high-tenor lithium grades in spodumene pegmatites and returning a peak grade of 3.22% lithium oxide, double the average grade of 0.9%-1.6% in hard rock lithium.
Latin Resources will pay US$15,000 in cash as immediate consideration for the acquisition, and another US$15,000 in LRS ordinary shares, with an additional cash payment of US$75,000 to be paid 12 months after the option exercise.
“Tenement contains significant potential”
“We are very pleased to have exercised our option to acquire the Bananal 830.691/2017 tenement, securing 100% ownership of the area where we will be undertaking an extensive diamond drilling program,” Latin Resources managing director Chris Gale said.
“Based on what we have seen so far from the results of the current maiden diamond drilling, we are very confident that this tenement contains significant potential for high-grade lithium pegmatites.
“The next phase of drilling is aimed at providing sufficient data to enable the company to undertake a JORC mineral resource estimate should results continue to be favourable.”
Bananal Valley 'Southern Target Area' drill collar plan showing significant intersections received to date.
Having recently filled the coffers with a $35 million placement, Latin intends to continue its aggressive resource definition drilling program, consisting of 25,000 metres at the Salinas Lithium Project intended to fast track the next major milestone – a maiden JORC resource.