Latin onto more pegmatites in Brazilian lithium quest

ASX-listed Latin Resources has raised the stakes at its Salinas lithium project in Brazil after the explorer struck a string of wide, spodumene-rich pegmatites in all six of the holes sunk in its latest round of drilling. According to the company, the cumulative intersections have a maximum thickness of over 36 metres and are open along strike and down dip.

Given the spodumene concentration and increasing thickness of the pegmatites, management believes it could be closing in on the discovery of a significant lithium deposit in South America.

Latin says the samples from the first four holes of the probe are now en route to a laboratory for assay analysis, with the results expected over the next few weeks.

With the final drill hole in the southern target region expected to be completed over the coming days, the company will now shift its focus to the next target area lying 500 metres to the north.

According to the explorer, first pass mapping and outcrop sampling have confirmed wide-scale pegmatites identified in an earlier diamond drill campaign further south that cut through the northern target area where the latest round of drilling was completed.

Latin onto more pegmatites in Brazilian lithium quest

Latin is now gearing up to sink an additional five holes across three sections.

We look forward to receiving the assay results from these spodumene pegmatites in the next few weeks. The companies market cap is approximately $60m, and much lower than our lithium peers, which we expect offers strong potential for re-rating as positive assay results confirm the strength of the Salinas Project.

The famous Bananal Valley in south-west Brazil is an important part of Latin’s Salinas lithium project. It is located in the Minas Gerais area, that also contains Sigma Lithium’s Grota do Cirilio project.

Sigma’s ground lies some 60 kilometres away and boasts a high-grade lithium mineral resource of roughly 52 million tonnes.

At Grota do Cirilio, Sigma is nearing commercial production and aims to produce an end product with an impressive average grade around 1.48 percent lithium oxide.

Latin’s lithium portfolio in Brazil comprises of the Bananal Valley and Salinas South projects. Both projects are located in the Jequitinhonha Valley, near the regional hub of Salinas and interestingly cover the only known lithium-bearing ground in Brazil.

With the company continuing to unravel thicker pegmatites at its Salinas project and global lithium prices on a seemingly unending track skyward, Latin believes it could be on the path towards the development of a significant, in-demand resource.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au