- Brazil is the focus going forward
- The company is working to develop high-priority targets in Brazil’s Minas Gerais lithium province
- Once Latin Resources determines targets, it plans to secure ground with the best prospectivity
- Drilling will then be on the cards along with JORC resource definition work
What does Latin Resources do?
Latin Resources Ltd (ASX:LRS) (FRA:XL5) specialises in minerals exploration in South America, turning its attention to Brazil in recent months. It is run by managing director Chris Gale, an experienced corporate leader and the former chairman of the Council on Australian Latin American Relations (COALAR) for the Australian Government Department of Foreign Affairs and Trade (DFAT).
Gale is the executive chairman of Perth-based boutique corporate advisory firm Allegra Capital Pty Ltd, past chairman of CorpCloud Pty Ltd and former chief executive officer of telecommunications player Swiftel Ltd, now part of Vocus Communications group.
What is Latin Resources progressing?
The company has projects in Argentina and Peru, consistent with its long-term strategy to explore for minerals in Latin America and build and create shareholder wealth through the definition of resources.
A key focus for Western Australian-based Latin Resources is now Brazil and the country’s lithium-rich but underexplored Minas Gerais region.
READ: Latin Resources excited by lithium prospects in Brazil’s ‘mining-friendly’ Minas Gerais region
Latin Resources is on the hunt for priority-one targets in the region after permitting delays in Argentina where the company holds acreage.
Sigma Lithium Resources Corp (CVE:SGMA) (OTCMKTS:SGMLF) and Companhia Brasileira de Lítio (CBL) hold acreage in Brazil’s Minas Gerais, both operating in the area and demonstrating its prospectivity.
Sigma has drilled out a world-class lithium resource base which stands at 45.7 million tonnes at 1.38% Li2O.
An operating CBL lithium mine near Araçuaí in the area has produced 70,000 tonnes a year at 6% Li2O.
Latin Resources holds hope for the lithium prospectivity of the region, with Gale describing it as one of the great mining jurisdictions of the world during an interview two weeks ago with Proactive Investors about the company’s Brazil ambitions.
Pegmatites are a particular focus for the company’s exploration in South America. Hard-rock lithium deposits, or pegmatite deposits, can contain extractable lithium, niobium, tin and tantalum.
While lithium in pegmatites can be found in spodumene, the minerals petalite, lepidolite, amblygonite and eucryptite can also feature the battery mineral.
Despite underexploration of the Minas Gerais region, the area holds considerable amenities, including a lithium spodumene plant with a 20-year history and a newer lithium hydroxide plant.
The company hopes to obtain tenements in Minas Gerais’ Jequitinhonha valley sub-region which hosts the country’s Eastern Brazilian pegmatite province.
Its geologists are based in the city of Salvador near their area of focus, having completed three trips to the region.
They are continuing to find spodumene not known or reported.
After the geology team finishes its investigation, the company plans to secure the highest priority targets to grab the most well-advanced tenure to quickly take to JORC-compliant status.
Sigma has more than 200 pegmatites in its tenure, with the company’s focus being on 10 high-grade hard-rock lithium pegmatites, nine at past-producing lithium mines.
Brazilian lithium company CBL is also mining spodumene pegmatites to produce a spodumene concentrate that is despatched to a Minas Gerais chemical plant in Divisa Alegre where it becomes industrial-grade lithium hydroxide.
What is Latin Resources’ reporting schedule?
Latin Resources reports its annual results to shareholders on a calendar year basis, last filing its annual results in April 2019.
The company presents its cashflow and activities reports to the market on a quarterly basis. It’s next quarterly reporting is expected by the end of this month.
Resource drilling, definition and upgrade results
Scoping and feasibility studies work
Significant transactions and key partnerships
Managing director Chris Gale excited by opportunity in Brazil
“The more we investigate Minas Gerais the more we get excited about the huge potential this underexplored region holds,” managing director Chris Gale said.
“This significant time investment into Brazil marks a broadening of the company’s lithium strategy as we work to identify lithium opportunities outside of Argentina.
“I am very confident that the company can quickly and effectively execute exploration programs in Brazil which we hope will deliver positive news to shareholders in a much timelier fashion.
“We have a bit more work to do in securing concessions but we are well and truly onto that and we will start seeing more news flow.
“To get confidence back in the company we have to secure new ground and start drilling.”