Positive lithium drilling results from Salinas Lithium Project
Latin Resources (ASX:LRS) came out with a new batch of lithium assays from their diamond drill program in Brazil today.
We think they’re very good.
The intercepts made to the south of its first two holes have returned more high grade lithium pegmatites.
The more outstanding assay results include a peak of 2.0m @ 3.07% Li2O. All results remain open along strike and down dip.
Here’s are the intercepts from the two holes:
Importantly, both of the new assays were on intercepts >17m and well above economic lithium grades. This provides LRS with the confidence to expand the drilling team to facilitate the fast tracking of systematic mineral resource definition drilling.
In today’s announcement LRS also put out the results from some drilling ~350m to the north of the two confirmed lithium bearing zones with a spodumene bearing pegmatite intercept of ~8.4m.
If we continue to see these type intercepts that far to the north then we think we could see the ~500m strike length almost double.
In our 2022 LRS Investment Memo, we set the JORC resource estimate as Objective #1 for what we wanted to see LRS achieve this year and we hoped that with a bit of luck it could be something LRS ticked off later in the year.
With today’s announcement, LRS is now looking to bring all of this forward by adding drilling rigs to its current drilling program which could potentially mean we see this objective achieved much earlier in the year.
We think it’s an aggressive approach but appropriate given the strong results.
Assays pending from other drillholes 🔄
LRS is now up to the 12th drillhole of its current drilling program. Holes five and six both intercepted between 10m and 32m of spodumene bearing pegmatites so we will be watching to see the assays from both those holes.
LRS expects to receive these in the “coming weeks” and we will be hoping that the assays are indicative of even more high grade lithium mineralisation.
Below is an image of the spodumene crystals from drillhole 6 (assays pending).
Drilling at the newly acquired Monte Alto prospect 🔄
Mobilisation of one drill rig to the newly acquired Monte Alto tenement to the east — a newly acquired tenement that delivered strong rock chip grades.
Additional drill rig being added to do infill resource definition drilling 🔄
LRS will now be drilling on “two fronts”. One drill rig will chase higher risk exploration targets aimed at making new discoveries, the other rig focusing on drilling the current discovery with infill and step out drilling to fast track the resource definition process.
Here is why we invested in LRS and what we expect them to achieve in 2022 - LRS Investment Memo.