Bullish investor presentation from LRS for Bell Potter Unearthed earlier this week which talks to demand and some new information about the quality of the current known resource at Colina - points to lower cost due to the concentrations involved and reinforces the extensive drill program underway to add to the known resource.

Then yesterday LRS announced the securing of new tenements that increases their project tenure by over 350%:

• The Company has significantly expanded the Salinas Lithium Project tenure, by securing a large package of new tenements in the highly prospective region which hosts the Company’s 100% owned Colina Lithium Deposit.
• 17 new applications covering over 29,940 hectares have been lodged with the Brazilian National Mining Agency (ANM) over what the Company believes to be areas that contain favourable basement lithologies to host lithium bearing pegmatites, like those found at Colina.
• These new tenements represent an expansion of approximately 367% over the Company’s previous holdings, to a total of over 38,000 hectares now under Latin’s control.
• The Company has also secured the rights to additional mining rights directly adjacent to the South of Colina, where drilling by the Company has confirmed the extension of the Colina host lithologies and pegmatitic intrusive bodies (assay results pending), by signing a new option agreement.
• The current 65,000m diamond drilling program which commenced in early January, will focus on the expansion of the existing Colina Mineral Resource Estimate to the west and south. The Company is will also undertake first pass reconnaissance drilling at the existing Salinas South and Lajinha Prospect areas in the coming months.
• The Company’s regional exploration team will be undertaking initial reconnaissance mapping and geochemical sampling over the new project tenements as a part of its exploration strategy in the now expanded Salinas district.

Latin Resources’ Geology Manager, Tony Greenaway, commented:

“The Bananal Valley region is a highly prospective district, as we have proved with the discovery and delineation of the Colina Lithium Deposit. Our proprietary knowledge gained over the past 12 months throughout the resource definition drilling of Colina, coupled with our understanding of the wider regional controls to mineralisation in this area, has enabled us to identify these opportunities to secure what we believe are favourable exploration areas for the Company.”

Latin Resources’ Managing Director, Chris Gale, commented:

“The Salinas Lithium Project is continuing to grow to potentially become one of the world’s leading lithium projects with this expanded tenement package. With the recent publication of our Maiden JORC Lithium Resource, the aggressive 65,000 metres drill program planned for 2023 and feasibility studies well underway, we are extremely excited about this year for Latin Resources.”

Further to last week's announcement about the commencement of further exploratory drilling, LRS announced today significant further Li intercepts from its assays of 2022 drilling.

Latin Resources’ Geology Manager, Tony Greenaway, commented:

“These latest results from our 2022 drilling campaign are exceptional. We have intersected over 67 cumulative meters of highly mineralised pegmatites in drill hole SADD055, which was collared approximately 200m to the south of the Colina West discovery hole SADD033.

“The Colina West area is shaping up to be a critical new discovery for the Company. The thick high‐ grade mineralisation we have encountered here is on par with, or arguably better that the main Colina deposit. The potential scale of the Colina West discovery, highlighted by these latest results, means that this area is a major focus for our current 2023 drilling campaign. We believe, that with more drilling, Colina West has the potential to deliver significant tonnes to the overall resource base for the Project.”

LRS updated the market this morning on the commencement of their program to expand the resource at Salinas. This program includes 65000m of planned drilling.

HIGHLIGHTS

• Six small footprint diamond drilling rigs have arrived on site and commenced drilling at the Company’s flagship Salinas Lithium Project in Brazil.
• Two additional larger, track mounted diamond drilling rigs are scheduled to arrive on site in February.
• 65,000m mineral resource infill and expansion program will focus on fast-tracking the growth of the Colina Indicated and Inferred Mineral Resource, and mineral resource definition for the Colina West Prospect.
• Upgrade and expansion of the Company’s core logging, processing, and storage facility nearing completion.
• Targeted large diameter PQ diamond core drilling for detailed metallurgical DMS pilot plant and other testwork will commence in February.

This is a significant resource but this program will give a clearer definition of its scale.

Latin Resources’ Geology Manager, Tony Greenaway, commented:

“2022 was a standout year for our exploration team, culminating in the delivery of the Company’s Maiden JORC Mineral Resource Estimate for the Colina Lithium Deposit in just ten months from starting our first drillhole.

“We are all excited to have drilling started again in 2023, where we will be looking at rapidly expanding our mineral resource base through infill and extension drilling at Colina, and systematically drilling out the new Colina West Prospect. The initial results from hole SADD033 drilled into Colina West last year was a watershed moment for the team, and our understanding of the larger mineralised system at Colina. While we are still waiting to receive all the assay results from the additional holes completed in Colina West toward the end of last year, we are confident that with continued drilling, we will be in a position to upgrade and expand our mineral resource base in the 2023 March quarter.”

... and so for the money to pay for it all... following a trading halt, LRS announced this morning the details of a capital raise at $0.16... and in early trading the stock is up 8% to $0.20. Lots of positivity and love in the air...

TRANSFORMATIONAL A$35 MILLION CAPITAL RAISING TO EXPEDITE LITHIUM BUSINESS IN BRAZIL

HIGHLIGHTS

• Latin raises A$35 million in a placement anchored by Canadian cornerstone investor, Electrification and Decarbonization AIE LP Fund, with a lead order of A$15 million.
• Latin now well-funded to rapidly accelerate its Bananal Valley drilling program at the Salinas Lithium Project in Brazil.
• Objective to delineate a maiden JORC Mineral Resource and establish project scale rapidly through escalating the drilling campaign from two to four diamond drill rigs with a planned 25,000 metre drill program on the Bananal Valley project.
• Additional drill rig to commence scout drilling at high priority regional lithium targets including Salinas South and the recently acquired Monte Alto prospect area.
• In parallel with advancement of the lithium business in South America, Latin will press forward to complete a Pre-Feasibility Study on its large-scale Cloud Nine Halloysite-Kaolin Deposit in Western Australia.

DISC: Held in SMSF

A further update on the Salinas Lithium resource this morning. As @Slats previous straw says, LRS has been on a tear. This further confirmation of the extent and quality of the resource may add to that this week.

3.07% Li2O

NEW RESULTS CONFIRM HIGH-GRADE CONTINUITY AND INCREASING THICKNESS OF PEGMATITES

DRILLING UPDATE - SALINAS LITHIUM PROJECT

HIGHLIGHTS

• Results received from the latest two diamond drill holes at the Salinas Lithium Project have confirmed the continuity of the previously reported high-grade lithium pegmatites, and upgraded the project through now confirming the thickening of the logged pegmatites to the south.
• More outstanding assay results show further high-grade lithium in pegmatites, with a peak of 2.0m @ 3.07% Li2O. All results remain open along strike and down dip.
• Intersections include:
• ○ SADD004: 17.38m @ 1.46% Li2O from 119.80m Including 10.20m @ 2.05% Li2O from 120.95m Including: 3.05m @ 2.26% Li2O from 120.95m and: 2.00m @ 3.07% Li2O from 127.00m
• ○ SADD003: 17.05m @ 0.95% Li2O from 65.65m

Including: 4.00m @ 1.96% Li2O from 69.65m 5.15m @ 1.31% Li2O from 98.35m 1.90m @ 2.13% Li2O from 98.35m

• Assay results continue to show consistent down hole and down dip grade profiles, which is now demonstrated across the first two wide spaced drill sections.
• Drilling of SADD011, approximately 350m to the north of drilling reported above, has confirmed the continuation of spodumene bearing pegmatites over a strike extent approaching one kilometre. This positive result indicates a possible link of a mineralised system to the south target, expanding the strike considerably. Planning for additional drill testing is being carried out to test this middle zone.
• These further very positive assay results provide the Company the confidence to secure additional drilling rigs in order to fast-track mineral resource definition drilling, of what it believes could be a significant lithium occurrence.

LRS up nearly 20% this morning on more good news from their drilling campaign. The more news that trickles in (none of which is properly assayed or JORC compliant at this stage), the more it seems they have a significant resource.

DISC: Held in my SMSF - with this announcement I'm just about back into the black!

DRILLING CONFIRMS THICK SPODUMENE BEARING PEGMATITES, OPEN IN ALL DIRECTIONS

HIGHLIGHTS

• Six diamond drill holes completed, on four sections covering 500m of strike, with all holes intersecting multiple spodumene bearing pegmatites.
• Cumulative pegmatite intersections of up to 36.1m true thickness encountered in one hole, with individual pegmatites up to 21.1m true thickness. All pegmatites are open along strike and down dip.
• Samples for the first four holes have been dispatched to the laboratory for analysis, with the first assay results anticipated in the next few weeks.
• Drilling focus has moved approximately 500m to the north to drill Priority 1 drill holes in the northern target area.

Further to @Slats below, LRS up 11% today on a further interim announcement about prospects from their Salinas drilling campaign. It's all further good news but of course not yet JORC compliant or even quantified. I do prefer good to poor news though.

Disc: held in SMSF

LATEST DRILLING AT SALINAS LITHIUM PROJECT CONFIRMS CONTINUITY AND THICKENING OF PEGMATITES ALONG STRIKE AND DOWN DIP

HIGHLIGHTS

• Three diamond holes completed, with all three intersecting multiple spodumene bearing pegmatites, confirming strike and dip continuity.
• All pegmatites are open along strike and down dip.
• Drilling 180m along strike to the south has intersected 16.17m (true thickness) spodumene
• bearing pegmatites.
• Drilling has confirmed the “pinch and swell” nature of the pegmatites at Salinas, highlighting the significant nature of this greenfields discovery.
• Drilling of the 14-hole program is ongoing, with SADD004 currently underway testing the down dip extensions of pegmatites intersected in SADD003.

Latin Resources’ Managing Director, Chris Gale, commented:

“We are extremely pleased with the progress of the drilling campaign, as well as our initial observations of the drill core. We are continuing to intersect the three separate pegmatites in the drilling, but importantly, we have indications that these pegmatites are increasing in thickness along strike to the south, as well as down dip.

“This is a significant observation from the new drilling, and while we are very encouraged by these early signs from this greenfields discovery and our Salinas Lithium Project, we will continue to develop our geological model as our fully funded drilling campaign progresses and we continue to step out and test further afield along strike and down dip.

“Our field team is working hard to process the core, collecting all of the necessary geological, structural and mineralogical data before the core is cut and sampled for analysis. We are anticipating a four to six week turnaround time from the laboratory, with first results potentially around the end of March.

“We will continue to update the market on drilling progress, and once analytical results have been returned.”

Further results from drilling at Cloud Nine confirm the positive high-grade nature of the deposit

HIGH-GRADE RESULTS FROM CLOUD NINE HALLOYSITE-KAOLIN DEPOSIT

HIGHLIGHTS:

The final XRD results from the close spaced drilling, further confirms the continuity of high? grade and thickness of the halloysite bearing kaolinised granite, within the Cloud Nine Mineral Resource area. Significant intersections include:

o NBAC378: 6m @ 24% halloysite from 7m and: 13m @ 18% halloysite from 21m 

o NBAC380:16m @27%halloysite from 14m

 o NBAC382: 6m @ 26% halloysite from 14m Incl: 2m @ 36% halloysite from 16m

o NBAC383:18m  @26%halloysitefrom7m Incl: 6m @ 46% halloysite from 17m

• Ongoing analysis of the infill drilling required to update the existing Cloud Nine JORC Mineral Resource Estimate will be completed using the Company’s alternate analysis pathway, which is anticipated to significantly improve the results delivery timeframe.
• A specialised drilling contractor has been secured to complete geotechnical drilling and metallurgical drilling at the Cloud Nine Halloysite?Kaolinite deposit, with drilling scheduled to commence in February.

Latin’s Exploration Manager Tony Greenaway commented, “Our field team has been busy back out on site as of last week at Cloud Nine, collecting samples for additional metallurgical test work. We will continue to progress our detailed studies at Cloud Nine over the next quarter, including work on an upgrade to the maiden JORC Inferred Mineral Resource, along with geotechnical and other mining related studies.

We plan to have drilling rigs back out on site very soon to enable us to collect bulk samples; while in parallel we will also be commencing work on the longer lead time approvals required for development of the deposit, which include conversion of the existing Exploration Licences to Mining Licences and baseline environmental studies.”

Disc: Held in my SMSF

Lots of high-grade halloysite being discovered at the moment it seems (or maybe that's some weird cognitive bias in the companies I follow) including at Latin's Cloud Nine deposit. Also, seeing lots of announcements of significant delays in lab testing - business opportunity anyone?

Disc: I hold LRS in my SMSF

HIGH-GRADE HALLOYSITE INTERSECTED AT THE CLOUD NINE DEPOSIT

• Consecutive holes demonstrate excellent continuity of high-grade halloysite bearing kaolinised granite from within the Cloud Nine Mineral Resource area.
• High-grade halloysite results have been received from the next 14 holes in the geostatistical cross drilling program. Significant intersections include:
• 
  
• NBAC366: 9m @ 18% Halloysite from 28m to EOH Incl: 2m @ 47% Halloysite from 28m
• NBAC367: 18m @ 17% Halloysite from 24m to EOH
• NBAC368: 19m @ 23.4% Halloysite from 13m
• Incl: 2m @ 50% Halloysite from 19m
• NBAC369: 6m @ 18% Halloysite from 7m
• and 13m @ 19% Halloysite from 19m Incl: 2m @ 30% Halloysite from 19m
• NBAC373: 3m @ 18% from 3m
• and 15m @ 21% Halloysite from 10m
• NBAC374: 16m @ 25% Halloysite from 9m to EOH
• NBAC375: 9m @ 36% Halloysite from 14m to EOH
• 
  
• Moving forward, significant cost savings and improvements in sample throughput will be achieved by LRS through the approved use of the FTIR and Machine Learning (ML) approach.
• Recent drilling results and ongoing drilling in Q1 2022 will drive an update to the JORC Resource Estimate for the Cloud Nine deposit, designed to increase confidence levels to Indicated and potentially Measured status.
• Significant laboratory delays continue to impact the Company’s ability to announce results from the Cloud Nine drilling program in a timely manner.

Early days of course but another positive glimpse on the resource front for Latin...

Disc:  I hold

LITHIUM POTENTIAL CONFIRMED AT SALINAS LITHIUM PROJECT, BRAZIL

HIGHLIGHTS:

• Field work and mapping of the Bananal Valley area of the Salinas Lithium Project has identified outcropping pegmatites containing spodumene over 4km2 area, confirming the Project’s high prospectivity for lithium.

• A total of 82 samples were collected during this initial mapping exercise including 38 stream sediment samples and 44 outcrop rock-chip samples. All samples have been dispatched to the laboratory for detailed analysis – assay results are pending.

• Data compilation and desktop reviews completed while COVID-19 lockdown conditions were in place, have highlighted several high priority target areas within the Salinas Project. Latin has commenced systematic mapping and sampling of these focus areas with the aim of identifying drill targets.

• Preliminary drill sites have been selected and will be finalised for the submission of the statutory approval documentation once all assay results from sampling have been received.

• Geology and sampling teams are now back on the ground to focus on the next priority areas.

Mostly a cut and paste for Catalyst Hunter today with a few comments:

Disc:  I hold LRS and SUV in my SMSF

Halloysite is a rare derivative of kaolin where the mineral occurs as nanotubes. The size of the halloysite particles varies within 1-15 microns in length.  Halloysite has a wide variety of industrial uses beyond simple kaolin and commands a significant premium above the average kaolin price.  Its main applications are in ceramics, where it is used in the manufacture of high-quality porcelain by adding whiteness, transparency and exceptional strength to the final fired product.  It is also used as a petroleum cracking catalyst.

Highly valued by downstream buyers, halloysite is a hard mineral to find. But Latin Resources Limited (ASX: LRS) seems to be making light work of it at its 100% owned Noombenberry Halloysite-Kaolin Project in Merredin, WA.

Initially attracted to the company’s potential to become the single-largest undeveloped Kaolin-Halloysite deposit in Australia, we added LRS to the Catalyst Hunter investment portfolio in November 2020 initiating coverage at 3.0¢. 

LRS went on to deliver a Maiden Inferred Mineral Resource for Noombenberry back in May. But this 207Mt of kaolinised granite — which placed it as a globally significant halloysite project — could just be a starting point, with LRS hinting that it could get bigger and higher grade with more work. 

We think the project presents a compelling opportunity as one of Australia’s few known occurrences of ultra-high-grade halloysite – a naturally occurring nanotube, and the company is now rapidly advancing its first defined area — the Cloud Nine Deposit. 

Aside from its traditional uses in ceramics and as a petroleum cracking catalyst, halloysite has potential applications in greenhouse gas / carbon-capture, hydrogen storage, and HPA feedstock.

LRS yesterday reported that Resource infill drilling to upgrade the current Inferred Mineral Resource Estimate to a JORC Indicated classification has been completed.

When trying to establish the size of an underground deposit, “step out” drilling is to test the boundaries of how far the deposit extends, and “in-fill” drilling is used to confirm the deposit continues in between step out drills holes at a decent grade.

Infill and stepout drilling has been completed at Cloud Nine with a total of 359 new aircore drill holes for 9,640 metres of drilling. Initial sample processing and analysis now underway.

Detailed metallurgical test-work is set to commence (this is proving that the material can be extracted in an economic fashion by processing a small sample), yet drilling has already revealed that Cloud Nine remains open in all directions, offering substantial potential to grow to support a long-life mining opportunity. 

Systematic stepout drilling to the north of the existing Cloud Nine Mineral Resource has also been completed, with the aim of extending the known Kaolin-Halloysite resource a further four kilometres to the north. 

Metallurgical bulk samples have been collected for the commencement of the detailed test work program as a component of the Pre-Feasibility Study (PFS).  

The PFS, based on development of the Cloud Nine Resource, will consider supply to a range of traditional end-users of kaolin-halloysite. 

Halloysite is a rare derivate of kaolin, a clay mineral. Traditionally, it has been used in ceramics and as a petroleum cracking catalyst, however it has a raft of exciting new applications in emerging industries.

LRS has partnered with third party consultants to investigate the potential for downstream supply of the high-grade halloysite to emerging new applications, such as carbon-capture, hydrogen storage, and HPA feedstock. 

Cloud Nine, expected to be a shallow open pit mine, is situated close to major road and rail infrastructure. The project’s expected low-cost processing flowsheet provides opportunity to rapidly advance the deposit to production. 

LRS also reported that a further four tenements have been granted at the Noombenberry  Project, adding an additional 359km2 to the project area which now totals 566km2.

What’s Next at Noombenberry?

LRS have plans to undertake a regional exploration campaign across its extensive and highly prospective 100%-owned tenement holding in the Merredin area, aiming to highlight priority focus areas for ongoing exploration. 

Two separate sites within the newly granted tenements and reconnaissance sampling have already been identified, showing additional ultra-bright white, and high-grade halloysite bearing material up to 14km to the northeast.

What we are watching out for next

LRS currently has an attractive market cap of just $55 million and provides exploration and development exposure across multiple projects in Australia and globally.  

While the recent focus has been on its Noombenberry Halloysite Kaolin Project and its Yarara Gold Project in NSW — the company’s Salinas Lithium Project in Brazil and Catamarca Lithium Project in Argentina present upside further potential to investors in what is a particularly hot market right now.