Posts

Pilbara Minerals Increases Lithium Exposure through acquisition of Latin Resources

/in , /by

THE BOURSE WHISPERER: Pilbara Minerals (ASX: PLS) made a lithium splash this week by announcing a binding Scheme Implementation Agreement to acquire 100 per cent of Latin Resources (ASX: LRS).

Pilbara Minerals will now take on Latin Resources’ Salinas lithium project in Minas Gerais, Brazil, which it considers having top 10 hard rock lithium operation potential.

In May, Latin Resources announced a material upgrade to its global Mineral Resource Estimate to 77.7 million tonnes at 1.24 per cent lithium oxide (Li2O) with greater than 85 per cent sitting in the Measured & Indicated categories.

On the other side of the coin, Latin Resources shareholders will see Salinas benefit via de-risking of funding and development through Pilbara Minerals’ proven experience in developing and operating hard rock lithium projects, such as the latter’s Tier 1 Pilgangoora operation.

“This acquisition is on-strategy, diversifying the business with what we believe is a counter-cyclical, accretive extension that further builds out Pilbara Minerals’ position as one of the leading lithium materials suppliers globally,” Pilbara Minerals managing director and CEO Dale Henderson said in the company’s ASX announcement.

“The acquisition will deliver our second 100 per cent-owned, Tier 1, hard rock lithium asset, which is expected to be low-cost and accretive for our shareholders.

“It provides Pilbara Minerals with optionality to sequence new supply and diversify into new growth markets for lithium such as Europe and North America.”

Latin Resources has been progressing a DFS for Salinas which had been anticipated to be completed by the end of the September Quarter 2024 based on a standalone development of Salinas.

Once the DFS is completed and ongoing Stage 1 fast-tracked permitting is finalised, Pilbara Minerals has the optionality to consider a final investment decision.

“I’m in no doubt that Pilbara Minerals’ expertise’ in lithium mining will be an enormous benefit not only to Latin Resources and its 100 per cent-owned Brazilian subsidiary, Belo Lithium, but to Brazil itself,” Latin Resources managing director Chris Gale said.

“Brazil’s Lithium Valley will now well and truly be on the world’s global lithium map as one of the best lithium mining jurisdictions in the world.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Latin Resources Makes Third Salinas Lithium Discovery

/in , /by

THE DRILL SERGEANT: Latin Resources has claimed a third major spodumene discovery within the company’s 100 per cent-owned Salinas lithium project in Brazil.

Latin Resources reported it has received high- grade assay results confirming the discovery at the Planalto prospect.

Assays received have supported the presence of coarse grained spodumene previously observed in drillhole SADD223 with 32.94 metres of intercepts (cumulative) encountered.

Highlights include:

SADD223:
9.25 metres at 1.21 per cent lithium oxide (Li2O) from 395.29m; and

16.14m at 1.29 per cent Li2O from 425m, including 7.14m at 1.63 per cent Li2O from 434m

“I am extremely excited by the progress we have made to date,” Latin Resources managing director Chris Gale said in the company’s ASX announcement.

“This past year has been a transformative period for our company.

“We have achieved significant milestones that not only reflect our commitment to excellence but also underscore our potential for future growth.

“2023 was a busy year for our Brazilian exploration team, resulting in a series of major upgrades and increases to our Mineral Resource of now over 70 million tonnes.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Latin Resources Increases JORC Resource at Salinas Lithium Project

/in , /by

THE DRILL SERGEANT: Latin Resources (ASX: LRS) announced a 50 per cent increase to the Minerals Resource Estimate (MRE) at the company’s 100 per cent-owned Salinas lithium project in Brazil.

Latin Resources increased the Salinas MRE via growth at the project’s Colina and Fog’s Block deposits.

This included a 41 per cent increase to the Colina deposit MRE to 63.5 million tonnes at 1.3 per cent lithium oxide (Li2O), which Latin Resources claimed places it amongst one of the largest scale Tier-One undeveloped lithium resources globally.

This combined with a maiden Inferred Resource Estimate defined at Fog’s Block for approximately 6.8 million tonnes at 0.9 per cent Li2O.

Latin Resources signalled its upcoming intentions for the two deposits, indicating 16 – diamond drill rigs will commence drilling in January 2024 at Colina and Fog’s Block, which is anticipated to expand through 2024 with a focus on upgrading the Colina MRE, leading into a DFS and testing the new Planalto discovery over the Salinas project tenure.

“What a great effort from our exploration team,” Latin Resources managing director Chris Gale said in the company’s ASX announcement.

“Another significant milestone met with our upgraded MRE to over 70 million tonnes.

“This project is fast becoming a Tier One lithium resource as we predicted.

“We are also very encouraged by the consistent uplift in grade as we infill drill.

“This is a great sign of a quality mineral resource.

“The increase in size of the JORC resource will have an extremely positive impact on our DFS economics as the resource increase allows us to evaluate building phase 3 of the project lifting output significantly.

“The lithium market sentiment is low at the moment; however, no one can say Latin hasn’t delivered what it has promised over the last two years.

“I thank the shareholders that have stuck with us through these difficult times!”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Latin Resources Releases Results for Colina Lithium Project PEA

/in /by

THE DRILL SERGEANT: Latin Resources (ASX: LRS) reported key outcomes of a technical and financial study aka Preliminary Economic Assessment (PEA) on the company’s 100 per cent-owned Colina lithium project located in Minas Gerais, Brazil.

In a nutshell the combined Phase 1 and 2 results of the assessment are as follows:

o After-tax NPV8% of A$3.6 billion (US$2.5 billion @ 0.70 AUD:USD) and IRR of 132%.
o After-tax payback period of approximately 7 months.
o LOM average production of approximately 405,000 tonnes per annum (tpa) (55,068tpa LCE0F 1 ) of SC5.5.
o LOM average production of approximately 123,000tpa (9,125tpa LCE1 ) of SC3.
o Weighted average LOM spodumene concentrate price of US$1,699/t (A$2,427) CIF SC5.5 and US$927/t (A$1,324) CIF SC3 based on average price forecasts from Fast Markets and Benchmark Minerals; two of the leading price reporting agencies in the lithium sector.
o All-in sustaining cost (AISC) of US$536/t (operating costs, sustaining capital and royalties).
o LOM revenue of A$12.6 billion (US$8.4 billion), with free cash flow of A$6.8 billion (US$4.7 billion) over 11-years of operation.
o Extension of resource and production expansion opportunities to be evaluated in the DFS.

Based on the current 45.2 million tonnes at 1.32 per cent lithium oxide (Li2O) Mineral Resource Estimate (MRE), the company said the two-stage expansion plan for Colina project has the potential to establish it as the second largest spodumene concentrate producer in Brazil and among the lowest cost spodumene concentrate producers globally.

Latin Resources continues to expand the MRE through a resource drilling program with eleven drill rigs currently on-site supporting the Definitive Feasibility Study (DFS) due for completion in mid-2024.

A Phase 3 extension and expansion to production will be evaluated in the DFS.

“Latin Resources is extremely proud to have produced such compelling economic results with our first feasibility study on the Colina project,” Latin Resources managing director Chris Gale said in the company’s ASX announcement.

“The low-cost capex and fast track to production in 2026 will hit the sweet spot of rising lithium prices many are predicting over the coming years.

“The Colina project is on track to become one the world’s largest spodumene mines with very low operational costs.

“The company is very committed to developing a lithium mine with true sustainable mining practices, which will include hydro power, dry-stack tailings and recycled water systems.

“The phased capital development strategy provides a viable ramp-up that self-funds its expansion to become a Tier one lithium mine.

“Minas Gerais is an excellent jurisdiction to support delivery of the Colina project into a sustainable, large and low-cost spodumene operation on an accelerated basis.

“Latin Resource alongside Sigma Lithium will propel Lithium Valley, Brazil into one of the global top 4 lithium provinces.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Latin Resources Extends Colina Lithium Pegmatites

/in , /by

THE DRILL SERGEANT: Latin Resources (ASX: LRS) backed up its attendance at the RIU Sydney Resources Round-up by updating the market on the latest assay results from resource definition drilling currently underway at the company’s 100 per cent-owned Salinas lithium project in Brazil.

Latin Resources has completed 133 drill holes, which represents a substantial increase from the 47 holes it used for the project’s maiden MRE completed in December 2022.

The latest extension drilling to the west of the existing Colina MRE has encountered, what the company described as, “a significant lithium swarm” that has extended the footprint of the Colina deposit to over 2 kilometres long by one kilometre wide.

Latin Resources declared it is very confident these lithium swarms could continue along strike to the southwest, providing the potential to further extend the Colina deposit mineral resource.

The company signalled a new program of step-out drilling will now be designed to test the extension of the pegmatite structure.

“The continued expansion of this lithium pegmatite deposit is phenomenal and has the whole team very excited to potentially see this develop into a tier one lithium deposit in the Minas Gerais Lithium Valley,” Latin Resources VP of Operations – Americas Tony Greenaway said in the company’s ASX announcement.

“We will now move some rigs to start testing to expand the deposit through systematic step-out to the southwest from the known Colina mineralisation or what our team call the Colina Corridor, where our deposit remains open.

“Our team on the ground at Colina has done an outstanding job to get through the full drilling program that we had planned for the upcoming June resource update.

“All holes are now complete, samples collected and are with the laboratory in Belo.

“We have been seeing fast turnaround from the lab, so we expect to have all results back for the beginning of June, when SGS in Canada will commence the estimation process.

“Now that this drilling milestone has been achieved, we will switch our focus on site, moving some of our drilling fleet to start drilling some large diameter drill core to collect the necessary metallurgical samples for our DFS studies.

“This will include running the samples through the SGS DMS pilot plant in Lakefield, Toronto.

“While we are all eagerly anticipating the outcome of the MRE update, our focus is very much to continue to advance this exceptional project on all fronts.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE