Metwork drilling leading up to maiden trial mining program at it
This morning our investment Latin Resources (ASX:LRS) announced that it had commenced a 10 hole diamond drilling program at its WA halloysite project with the ultimate aim of:
- Upgrading its 207mt JORC resource.
- Obtaining core samples from the existing JORC resource footprint, so they can be used in upcoming metallurgical testing programs.
At the same time LRS also confirmed that permits have been submitted for a small scale test pit where a pilot mining run would take place.
Today’s announcement will directly contribute to objective #2 of “What we want to see LRS achieve in 2022” as part of our 2022 LRS Investment Memo - which is to see LRS secure offtake agreements for its halloysite project.
With the drilling program designed so that product qualification work can be done through metallurgical testing and the permitting commenced on a pilot mining run, the upcoming drilling program is just a precursor to producing some of the end product that LRS will be hoping to sell to customers.
Also, given that the program is made up of diamond infill drilling we don't expect the JORC resource to get too much bigger. Instead, we expect to see some of the inferred resources move into the measured/indicated category.
