Final lithium assays are in
Yesterday, Latin Resources (ASX: LRS) reported final assay results from its resource definition drilling program at the high-grade Colina Lithium Prospect in Brazil.
We're pleased at how quickly LRS drilled out its Salinas lithium project and we think LRS could be on track to hitting our bull case after these results.
We’re also eagerly awaiting the JORC resource due before the end of the year.
The drilling that produced these assays returned further outstanding intersections, confirming the continuity of high-grade at depth and along strike.
These final results show the consistent nature of the pegmatite mineralisation at Colina and allow for LRS to incorporate them in preparing its maiden JORC resource, which is on track to be delivered in December.
These assay results were key milestones that we wanted to see LRS meet on its way to achieving our key objective for the company for 2022 — defining a JORC resource — that we had set in our LRS Investment Memo back in June.
Having a resource would allow LRS to engage in more substantive conversations with offtake partners and help the market appropriately value LRS versus its peers.
Our expectations we set included an overall grade for the resource of >1% lithium, while we set our overall tonnage expectations as follows:
- Bullish case (Exceptional) = >15Mt JORC resource
- Base case = 5-15Mt JORC resource
- Bearish case= <5Mt JORC resource
Now that the resource drilling is complete, the rigs can shift their focus to the recently discovered Colina West pegmatites. LRS hopes to incorporate this second area into the preliminary economic assessment (PEA) and other studies that are underway.
