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LRS delivers Maiden Jorc Resource: Is it better than Andromeda?


Published 31-MAY-2021 10:04 A.M.


2 minute read

Our $96M capped Halloysite hero Latin Resources (ASX:LRS) just announced a 207mt maiden JORC resource which on our initial read looks to be better than $475M capped Andromeda’s 210mt resource.

Today’s LRS JORC resource news has significantly exceeded our expectations, also considering LRS has drilled only the first of 5 of its projects - its land holding is 7 times the size of Andromeda.

We didn’t expect LRS would announce a maiden JORC inferred kaolin-halloysite resource that is practically the same size as its wildly successful bigger brother Andromeda - we also note that LRS’s JORC resource estimate was done independently.

Andromeda was one of the best performing stocks on the ASX last year and is a great example of how a micro cap explorer can unlock serious value in a halloysite project - its share price hitting 10x at its peak.

Today we provide our initial quick take on the LRS news (it’s better than we had hoped for) and we will shortly follow up with a deeper dive into the LRS JORC resource, what it means and how it compares to Andromeda.


LRS is currently capped at $97M and is now sitting on what could become the single-largest undeveloped Kaolin-Halloysite deposit in Australia.

LRS’s halloysite project is one of Australia’s few known occurrences of ultra-high-grade halloysite – a naturally occurring nanotube.

A global Inferred Mineral Resource of 207 million tonnes of kaolinised granite has been estimated at Noombenberry, comprising two separate domains:

  • 123 million tonnes of bright white kaolin-bearing material; and
  • 84 million tonnes of kaolin/halloysite-bearing material.

We invested in LRS in November 2020, and increased our position a few months later.

We invested as we liked the potential in LRS’ halloysite/kaolin project.

We sat on the sidelines as Andromeda Metals rose to a $475M market cap off the back of its impressive halloysite resource.

We took a position in LRS as we are hoping it can replicate similar success to Andromeda on its halloysite project in WA.

Today’s JORC announcement looks like LRS may be in a position to match Andromeda.

We will do a full deep dive of this major announcement in the coming days.

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S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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