Thickest intercept to date at Brazilian lithium project

This morning, Catalyst Hunter exploration investment Latin Resources (ASX: LRS) put out the assays from drillholes five and six at its Brazilian lithium project.

The headline intercepts were as follows:

• SADD005 (drillhole 5)= 4.25m @ 1.32% lithium from 125m
• SADD006 (drillhole 6)= 21.1m @ 1.2% lithium from 209m. (the thickest intercept made at the project to date)

Importantly drillhole 6 is located at the far south of the areas LRS has drilled to date meaning it now proves that the mineralised lithium structure extends over a ~800m strike length.

In today’s announcement, LRS also confirmed that drilling at the newly acquired Monte Alto prospect had commenced, in parallel with the ~25,000m resource definition drilling program taking place in and around drill holes one to six in the above image.

At the time of writing this the LRS share price is down ~13% for the day which we suspect is a result of broader market conditions and possibly as a result of the thinner intercept received at drillhole five.

We expected the thinner intercept from drillhole five considering the JORC table listed the pegmatite intercepts at ~10.58m for that particular drillhole.

On balance, we think the key takeaway from today was that the thickest intercept to date has been recorded at the far south of the ~800m strike length LRS has so far identified. The significance of this being that more drilling to the south could lead to extensions to the discovery.

With ~25,000m in additional drilling planned, we suspect LRS will look to target extensions to the south in the coming weeks/months as it looks to establish a maiden JORC resource for the project.

We set the maiden JORC resource as Objective #1 in our 2022 LRS Investment Memo and expect it to be delivered after several rounds of drilling.

With ~$35M raised just a few weeks ago, LRS now has cash in the bank and the drill rigs on site to get this delivered before the end of the year.

To see all of the key objectives we set for LRS in our 2022 Investment Memo, the reasons why we hold LRS in our portfolio and the key risks to our Investment thesis, click here.