Latin Resources Ltd (ASX:LRS) is approaching the final stages of negotiation with offtake partners for products from the Cloud Nine Halloysite-Kaolin Deposit in Western Australia with the collection of bulk samples from a test pit on the tenure.
A kaolin sample of 50 tonnes was collected during trial mining from the test pit, which will be used in bulk-scale metallurgical testing and sent to two separate groups in offtake discussions with the company for qualification test-work.
The ongoing negotiations between these parties have included options to supply short-term direct shipping ore (DSO) products as well as value-added processed kaolin and halloysite products in the long term.
Important development stepping-stone
“The completion of the test pit and collection of bulk samples is an important stepping-stone in the development of the Cloud Nine Project as a world-class kaolin deposit,” Latin Resources managing director Chris Gale said.
“The bulk samples have now been sent to the potential customers for final analysis. We are also working on our scope of works, along with mine permitting for a DSO-style product to sell to our potential customers.
“If the numbers stack up, Cloud Nine could develop into a great project for Latin Resources.”
Apart from bulk samples for offtake and metallurgical purposes, trial mining at the test pit also provided LRS with enough information to refine its preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions.
REE kaolinite clay analysis
Latin Resources has also begun testing a selection of kaolinite samples for rare earth elements (REEs), which are commonly associated with kaolinitic clays, known as ionic absorption clay deposits.
These clays generally contain four key elements for magnets used in electric vehicles, wind turbines and other advanced technologies: neodymium, praseodymium, dysprosium, and terbium.