L1M kicks off sampling program at Brazilian lithium project

Our Brazilian lithium Investment Lightning Minerals (ASX: L1M) just kicked off a sampling program at one of its projects in Brazil.

This is in the same area as one of our best ever Investments - Latin Resources.

L1M has three projects in the Minas Gerais region of Brazil, home to Latin Resources, Rio Tinto and Sigma Lithium.

For the past few months L1M has been working on two of its projects, and today the company announced a sampling program over the third project in the region:

One of the key reasons we initially Invested in L1M was because its projects sat in the same region as some of the lithium and broader mining industry heavyweights:

L1M’s focus with this round of work will be soil sampling, geophysics analysis and ground mapping work.

The ultimate goal is to try and rank drill targets that can be tested in the future.

With a market cap of just ~$7M we think that L1M is an early-stage lithium explorer leveraged to make a discovery.

We think that L1M is doing the right type of work given where we are in the lithium cycle.

Instead of rushing to drill targets we like that L1M is doing all the grunt work - ranking the best drill targets so that it can drill them (and hopefully make a discovery) when the lithium cycle turns for the better.

This is the same strategy that Latin Resources implemented in 2020 before the lithium bull market took off.

The company spent 2021 mapping and sampling its Colina project… all before the heights of the lithium bull market.

In February 2022, Latin eventually drilled what ended up being a discovery hole “2.71% lithium hydroxide from spodumene bearing pegmatite”.

The company grew over 1000% over the next few years and eventually was taken out by Pilbara Minerals for $600M.

We are hoping that L1M can imitate the success of Latin Resources, given the people behind the project…

However this is still early stage exploration and anything could happen.

What’s next for L1M?

Exploration program across Brazilian lithium projects 🔄

Across L1M’s Brazilian assets we want to see the company put together a portfolio of drill targets after it completes the necessary soil sampling programs.

We are looking forward to the results from the target generation work over the coming weeks/months.

Exploration program across WA lithium projects 🔄

L1M is also running a soil sampling program at its WA lithium assets.

Here, we also want to see L1M rank some interesting drill targets.

We covered the WA soil sampling program in our last L1M Quick Take which you can read here: Fieldwork begins at WA lithium exploration project