High grade lithium in Argentina?

Published 24-NOV-2022 11:38 A.M.

1 min read

This morning Latin Resources (ASX: LRS) detailed its exploration plan for its lithium projects in Argentina.

While we wait for LRS to put together its maiden JORC lithium resource at its Brazilian lithium project, LRS will complete geological mapping and sampling of some of the outcropping pegmatites.

Notably, LRS will target areas where the company has identified spodumene-bearing pegmatites and those that sit along strike previous drilling results, which measured up to ~12m thick and with lithium grades as high as 2.98%.

Those drill results were from a 2017 RC drilling program before the lithium market cooled off.

Remembering that LRS’s Brazilian discovery was made off a 4.31m intercept with lithium grades of ~2.22%, we will be watching to see what comes off this exploration work.

It is still too early to tell how big the discovery potential for LRS’s Argentinian project is, but it has the right early indicators to make us interested.

Considering LRS had $29.2M in cash in the bank at the end of the September quarter, we think putting some funds behind low-cost field work like this is a prudent use of LRS’s cash balance.

The ultimate aim for this round of fieldwork will be to rank high priority drilling targets that LRS can test in future exploration programs.

Next for LRS:

We want to see LRS’s maiden mineral resource estimate, for which we previously set our expectations as follows: