7 Diamond drill rigs on site, 3 more rigs on the way

Our lithium Investment Latin Resources (ASX: LRS) put out an update on its 65,000m+ resource extension drill program.

The key takeaways for us from today’s announcement were:

1) 3,000m of the planned 65,000m of drilling completed - LRS has a total of seven diamond drill rigs on site and plans on bringing another three on-site over the coming months. This means LRS will be drilling with 10 drill rigs.

2) Colina West discovery continues to grow - Assay results from drilling completed to date show that LRS’s Colina West discovery continues to get bigger. Below is an image of the mineralised zone relative to LRS’s current JORC resource.

3) More spodumene being intercepted - LRS continues to hit thick spodumene-bearing pegmatites 500m along strike and 300m up dip with mineralisation open in all directions.

So far so good for LRS which is planning on incorporating all of the drill results from this year's drill program in a planned resource upgrade later this year.

At the moment LRS’s existing JORC resource measures 13.3mt with lithium grades of 1.2% (only at the Colina discovery).

None of the mineralised zones at Colina West is included in LRS’s existing JORC resource.

We are hoping the company is able to increase its JORC resource significantly as it looks to follow in the footsteps of its $4.6BN neighbour - Sigma Lithium.

In our last LRS note, we discussed the similarities between Sigma and LRS, namely the similar initial JORC resources the two companies announced.

Just like LRS, Sigma back in 2018 announced an initial JORC resource of 13Mt with lithium grades of 1.56%, now <5 years later the company’s resource is multiples larger and the project is months away from production.

Since 2018 Sigma’s share price increased from peak to trough by over ~3,500%+

Given enough time (and a bit of luck) we are hoping LRS is able to emulate the success of its neighbour.