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More lithium hits add to Brazilian acreage for Latin

Fresh from announcing significant lithium oxide hits from its Salinas project in eastern Brazil, Latin Resources has added another 50 hectares of high grade, drill-ready lithium spodumene pegmatite targets to its portfolio. The company is now mobilising one of its diamond-drilling rigs to kick off an immediate 2000 metre program with Latin aiming to put together a JORC-compliant resource for the in-demand battery metal commodity.

The company has a 12-month option deal with vendor MSL Ltda to acquire 100 per cent of the Monte Alto tenement 830.080/2022 to the east of Latin’s existing Salinas project holdings in the Bananal Valley.

It said the new, highly prospective tenement contains known outcropping pegmatites with high-grade lithium, expanding Latin’s footprint to more than 5350ha in the newly-defined Salinas lithium corridor.

Latin has already notched up some interesting results, unveiling in late March a suite of lithium-rich pegmatites with a peak grade of 3.22 per cent lithium oxide in one hole.

Some of the other key intersections include a 4.31m hit going 2.22 per cent lithium oxide from 83.82m with a higher grade 1.13m section running 2.85 per cent lithium oxide from 87m.

A longer 8.13m strike took in a grade of 2 per cent lithium oxide from 111.3m and housed the headlining 1m section grading 3.22 per cent lithium oxide from 112.3m.

The news jolted a surge of trading activity in Latin shares, with investors driving the share price from around $0.05 in mid-March to trading at $0.18 in less than a month.

To secure the new acreage, Latin must pay MSL US$21,000 within a month, followed by monthly payments of US$4200 for the next 12 months. If the option is exercised Latin must also pay MSL US$240,000 in cash and the equivalent of US$120,000 in Latin shares – with a further US$640,000 13 months later.

MSL keeps a 3 per cent net smelter royalty under a separate royalty agreement and will also receive US$100,000 in cash and shares if a JORC resource is established.

Latin Resources’ Managing Director Chris Gale said he was very confident the tenement contained additional drill ready high-grade lithium pegmatites. He noted reconnaissance mapping and outcrop sampling had shown grades of surface samples from these features as high as those from Latin’s early sampling activities to the west.

The Monte Alto tenement is a priority drill target area for us, so we will be mobilising one of our two diamond rigs immediately to this area to commence drilling, Gale said.

We have planned 2,000m initially, with a second phase of follow-up, step out drilling already proposed.

This new area now puts us well and truly in the driver’s seat to produce more compelling drilling results to achieve our objective of a JORC resource. We are also looking forward to receiving the assay results on holes three and four over the next week.

Latin has two lithium projects in South America – Salinas in the state of Minas Gerais, Brazil and the Catamarca lithium project in Argentina. The company’s exploration portfolio also contains the Cloud Nine halloysite-kaolin deposit in Australia.

With the company’s lithium projects generating some serious momentum, there’ll likely be plenty of interest in what else is in store for Latin’s venture in South America.

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

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