Latin Resources Ltd (ASX:LRS) has embarked on the next chapter at its Salinas Lithium Project in Brazil after appointing a leading mining consultant to kick off feasibility studies.
SGS Geological Services (SGS) will carry out metallurgical test-work, a JORC mineral resource estimate and a preliminary economic assessment (PEA) at Salinas’ Colina prospect, bringing the company one step closer to developing its core lithium asset.
The Colina PEA is being run in parallel with the current diamond drilling program, which is designed to establish the maiden JORC resource that will feed into the feasibility studies.
Latin Resources also plans to commission SGS to build a pilot plant to produce a representative sample of lithium concentrate product.
Once the PEA is in hand, Latin expects it can fast-track the Salinas project to the definitive feasibility study (DFS) phase.
“Proven track record”
Speaking to progress at Salinas, Latin managing director Chris Gale said today: “We are extremely pleased to have engaged SGS Geological Services as an integral part of the development team …
“This appointment is an important milestone in the future development of the Colina prospect.
“SGS is a well-respected group with a proven track record of delivering high-quality studies and projects.
“They have vast experience in the region, with the recent successful completion of Sigma’s DFS. Their recent and very relevant experience will help Latin to fast track the development of our Salinas project.”
Next on the agenda
Latin expects to deliver its maiden JORC mineral resource for Colina by year’s end and complete the PEA by March 2023.
Once the environmental assessment is in the can, it can work on completing a DFS by Christmas next year.
The company also plans to commission SGS to build a dense media separation pilot plant in Belo Horizonte, Minas Gerais, and provide potential offtake customers with a representative lithium concentrate product.
So far, Latin has held preliminary discussions with several international car and battery manufacturers and leading lithium trading houses about the future supply of its lithium product.
Now that it has decided to fast-track the feasibility studies, the company is one step closer to inking offtake agreements with suitable customers.
Gale continued: “Latin Resources is aiming to become one of the key lithium players to feed the world’s insatiable appetite for battery metals.
“The high level of inquiry we are fielding from potential offtake customers shows that they very much value the quality of Colina’s lithium grade and tenure, which gives them confidence of Salinas’s potential to become a significant lithium project.”