LRS - Latin Resources

[System]

Latin Resources Limited (LRS) is a Perth based, Iron Ore and Gold focused exploration and development company with a number of attractive mineral concessions in Peru.

http://www.latinresources.com.au

 

[drillinto]

December 22, 2011

Latin Resources Starts To Unlock The Secrets Of Peru’s Coastal Heavy Minerals
By Our Man in Oz
>>> www.minesite.com/aus.html (The registration is free)

A maiden resource is not the green light that signals the start of mining. But, if the proposed mine falls into an unofficial category which might be called screamingly simple, and the resource estimate covers less than 5 per cent of a government-granted concession, then the green light is not too far distant. That is how Minesite’s Man in Oz interpreted today’s (December 21) statement from Latin Resources that it has a starter resource of 119 million tonnes of heavy mineral sands at its Guadalupito project on the coast of Peru. Investors who follow the stock which only listed around this time last year seem to agree, with Latin one of the few Australian explorers not harshly dealt with in the recent market turmoil, lifting Latin’s share price by more than 30 per cent over the past three weeks.

Much of the credit for the price rise to around A24.5 cents goes to a deal announced before Wednesday’s initial JORC-code compliant resource announcement, though the two events are linked. Back on November 30, Latin announced a fund-raising share placement with a Chinese investor. A large portion of the A$8.4 million raised will be spent on Guadalupito which Latin chief executive, Chris Gale, said at the time was continuing to “advance rapidly” with a maiden resource announcement expected in the first quarter of next year.



Chris was right in every respect, but not the time, with the earlier-than-expected release of the resource numbers a sign that events are moving quickly at what is a classic iron rich, beach-sands deposit of the sort found along the African, Australian and New Zealand coasts but rarely in South America. Why countries such as Chile, Ecuador and Peru should have failed to score on the global beach sands register is a mystery, but possibly a result of no-one ever looking closely because there was so much to dig out of the Andes without bothering to look for minerals washed to the coast, and then deposited by ocean currents.



Guadalupito looks likely to change that geological oversight by generations of explorers thanks to an Australian company with an understanding of marine deposited minerals, and a Chinese investor who recognises what’s been discovered and has been prepared to pay a handsome premium for the privilege of joining the game. Junefield High Value Minerals, the Chinese investor, acquired its 16.8 per cent stake in Latin via the purchase of 30 million shares at A28 cents, an impressive 51 per cent above the on-market Latin price immediately before the deal was announced.



“Bringing Junefield onto our share register achieves two objectives,” Chris said from his Perth office shortly after returning from Peru where he now spends 70 per cent of his time. “It gives us a major new cornerstone investor, and it provides the funds to accelerate work at Guadalupito and our other projects in Peru. The premium paid by Junefield is an indication of the value which our new shareholder places on the projects.”



That confidence was rewarded quickly with the release of the maiden JORC-code resource, and confirmation that Latin will move as quickly as possible to expand on the resource with more drilling, and be in a position to possibly start mining within the next 18 months. Scoping studies into how best to achieve quick cashflow are underway, alongside a busy campaign of shallow drilling to punch down a total of 1500 holes, 20-times as many as the 68 which have provided the data for the maiden resource.



For investors unfamiliar with beach sand mining (also known as mineral sands mining) there are two ways of extracting deposits laid down by eons of coastal deposition from current and wave action. Dry mining above the water table, which is as simple as it sounds, a shovel and truck operation, followed by easy separation. In the case of Guadalupito that will involve magnetic separation to produce two concentrate streams, one containing 64 per cent iron ore in the form of magnetite, and the other 5 per cent titanium dioxide. It is also likely the heavy mineral deposits will yield useful amounts of gold, zircon, and possible rare earths. The second stage, below the water table, calls for the use of a dredge in what would be a substantially bigger mine.



“The scoping study brief is to look at a 10 million tonne a year dry mining operation that will deliver early cash flow,” Chris said. “That would yield product streams containing magnetite, zircon and gold. The bigger dredging operation would be in the range of 30-to-35 million tonnes a year to produce magnetite, zircon and gold plus ilmenite, other ferro-titanum oxides and andalusite.”



Chris said the primary goals for the next 12-months included completion of the scoping study, and a start on pre-feasibility studies with the aim being to start production in 2013. “That work lies ahead of use,” he said. “What we’ve done in the past month is secure the funding to undertake the studies, and validate the exploration model we’ve been following. It is very significant that we’ve got this far with the drilling of just 68 holes out of a 1500 hole program, on just 682 hectares of the 16,437 hectares granted.”



Not discussed in detail for this report is the work Latin is undertaking at two other significant projects in Peru, including the Mariela iron and copper project, and the Ilo iron, copper and gold project. Mariela has attracted strong support from a Junefield backed company which has negotiated an option to earn a 70 per cent stake for which is has to spend A$35 million to take that project to the completion of a bankable feasibility study. Early drilling at Ilo Norte has returned encouraging assays from eight holes, including a 120 metre intersection starting at a depth of 24 metres and returning 0.13 per cent copper and 20.38 per cent iron, plus associated gold anomalism.



Taken together, the Guadalupito resource, Chinese investment deal, and work at Mariela and Ilo means that Latin has made significant advances with its Peruvian strategy, explaining why it has been a relative outperformer on the ASX over the past month. Next year, as news flows builds from the three projects should see the company attract even closer attention.

************************************

 

[springhill]

LATIN DISCOVERS MAJOR NEW HEAVY MINERAL DEPOSIT AT “LOS CONCHALES” 3km NORTH EAST OF EXISTING RESOURCE AT GUADALUPITO.

● Results received for 11 new drill holes on three sections, 1.6km apart, all continuously mineralized from surface to end of hole at depths varying from 33 to 48m (mineralization open at depth).

● Conceptual Exploration Target estimated for Los Conchales: 690Mt @ 6.8% Heavy Mineral (HM) within only 6% (1100 ha) of Latin’s 17,500 ha of mineral rights at Guadalupito.1 The section on the last page contrasts the intersections at Los Conchales with those of the Heldmaier JORC Inferred Resource Estimate of 119Mt @ 5.7% HM reported on 21 December 2011.

● The new Los Conchales target falls 2/3 outside the limits of the Snowden estimate of between 1.1 to 4.4 Bn tonnes for the entire Guadalupito project reported 20 July 20122 having three times the depth extent (and still open at depth) of the Snowden estimate, highlighting the increasing potential of Guadalupito to become a world class mineral sands project.

● Qualitative mineralogy identified Magnetite, Andalusite, Ilmenite, Zircon, Rutile and Monazite in HM separated from the sand fraction (-1mm+53μm).

● 20 holes completed to date along 4.6 km of strike and between 0.5 and 2.0 km of width.

● Drilling campaign followed up results from GUA-BL-045 reported 30 May 2012 (39m @ 7.4% HM including 15m @ 9.8% HM from 0 to 15m).

● Mineralisation is open to the North, South, East, West and at depth.

Los Conchales
The Los Conchales Conceptual Exploration Target of 690Mt @ 6.8% HM was estimated to provide a focus for resource drilling within an area bounding the current phase of follow up drilling which has resulted in significant intersections of HM in consecutive holes drilled on a relatively broad spacing. In order to upgrade the conceptual exploration target to inferred resources significant additional drilling would need to be completed on a density to be determined by geological continuity demonstrated on cross and long section throughout the area.
The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

 

[burglar]

LATIN DISCOVERS MAJOR NEW HEAVY MINERAL DEPOSIT AT “LOS CONCHALES” 3km NORTH EAST OF EXISTING RESOURCE AT GUADALUPITO.
...

Just finished reading an article on Latin Res. (LRS) in July edition of Paydirt ...

 

[springhill]

DRILLING ADVANCES AT MARIELA
Highlights
● Junefield has informed Latin of the completion of the first three drill holes of the planned 20 hole program at Mariela.
● The drilling programme at Mariela is being managed by Hong Kong based Junefield Group (‘Junefield’) as per the Earn In Option Agreement (reported Nov 2011). The agreement allows Junefield to earn up to 70% of the Mariela Project by funding all activities to the completion of a Bankable Feasibility Study or to a total cost of US$35 million.
● Junefield moved a second diamond rig onto the project after completion of first hole to 797 m depth.
● Junefield appointed SRK consultants in July 2012 to oversee logging, sampling and analysis of drill core and to provide Latin with JORC compliant exploration results and resource estimates.

 

[springhill]

Just finished reading an article on Latin Res. (LRS) in July edition of Paydirt ...

Anything of note in the article Burglar?

 

[burglar]

... insufficient exploration to define a Mineral Resource ...

The article was a little more optimistic than the ASX report, in that the disclaimer did not appear (but that's glossy magazines all over).

 

[springhill]

JORC INFERRED RESOURCES INCREASED TO 393Mt AT THE GUADALUPITO IRON AND MINERAL SANDS DEPOSIT, NORTHERN PERU


● Total Inferred Resources at Guadalupito increased 160% from 119Mt @ 5.7% Heavy Mineral (‘HM’) in situ to 393Mt @ 4.5% HM in situ.

● Snowden have completed a second JORC Inferred Resource Estimate at Guadalupito within the 1070 hectare “Tres Chosas” area containing 257Mt @ 3.9% total HM in situ with a 1% HM cut-off grade.

● In addition Snowden have also updated the geologically contiguous “Heldmaier” area to include additional data over the initial area of 682 hectares plus over another 168 hectares from 119Mt @ 5.7% HM in situ to 136Mt @ 5.5% total HM in situ with a 1% HM cut-off grade.

● With infill drilling continuing at the recently discovered high grade “Los Conchales” area, Latin aims to upgrade the conceptual exploration target of 690Mt @ 6.8% HM at “Los Conchales” (reported 26 July 2012)1 so it can be added to the Inferred Resources at Tres Chosas and “Heldmaier”, as reported above, by year end.

● Together, the “Heldmaier”, “Tres Chosas” and “Los Conchales” areas make up only 17% (3,020 hectares) of the more than 17,500 hectares of Latin controlled mining concessions at Guadalupito.

● The importance of Gold as a potential by-product at Guadalupito is reinforced with un-cut grades in the fine (-52 μm) fraction of samples from above the water table at “Tres Chosas” averaging 0.43 g/t, and below the water table averaging 0.08 g/t. By comparison, at “Heldmaier” un-cut gold grades in the same fraction, above and below the water table average 0.32 g/t and 0.05 g/t respectively.

 

[pixel]

I picked LRS off a chart and bought a speculative position at vwap, thinking the Price and Volume Brigade might jump on it tomorrow for a quickie. And then I heard that it's a HC ramp, which makes me feel slightly uncomfortable. While it may still play out as I planned, the opposite is also possible.

Anyway, I can only go by what the chart tells me and adjust my plan accordingly:

View attachment 59114

I entered on the premise of a double bottom, but would be happy if only the overhead gap were closed; happier still of course if HC could keep ramping it up to 6c or beyond.
Stop-loss at 3.4c - obviously.

 

[rb250660]

Sign up to HC pixel so you get the PnD emails.

 

[pixel]

Sign up to HC pixel so you get the PnD emails.

Thanks, but no thanks

I was registered once, and they still remember me; but I found a shortcut to divert those emails directly into the round filing cabinet. You know the one: where all SPAM bits and electrons are recycled.

 

[pixel]

I picked LRS off a chart and bought a speculative position at vwap, thinking the Price and Volume Brigade might jump on it tomorrow for a quickie. And then I heard that it's a HC ramp, which makes me feel slightly uncomfortable. While it may still play out as I planned, the opposite is also possible.

Anyway, I can only go by what the chart tells me and adjust my plan accordingly:

I entered on the premise of a double bottom, but would be happy if only the overhead gap were closed; happier still of course if HC could keep ramping it up to 6c or beyond.
Stop-loss at 3.4c - obviously.

Reposted with the chart visible - hopefully this time:

 

[frugal.rock]

Alright, let's dust this one off.
Potential halloysite in WA and something in the Lachlan Fold Belt NSW (gold etc), they were wasting money in South America, not sure what came of that if anything...
Interested in thoughts.
Have held before and got stung by a consolidation with the price collapsing afterwards... my bias is bad, but the recent price rising can't be ignored.
The fundamentals need a thorough go over though...

 

[Garpal Gumnut]

Alright, let's dust this one off.
Potential halloysite in WA and something in the Lachlan Fold Belt NSW (gold etc), they were wasting money in South America, not sure what came of that if anything...
Interested in thoughts.
Have held before and got stung by a consolidation with the price collapsing afterwards... my bias is bad, but the recent price rising can't be ignored.
The fundamentals need a thorough go over though...

The Lachlan Fold Belt must have very few holes left in it for those of large girth.

gg

 

[Dona Ferentes]

The Lachlan Fold Belt must have very few holes left in it for those of large girth.

The new Gawler Craton, I'd reckon (saw mention of it in your CNJ post)

 

[frugal.rock]

Well, consider the thread dusted.
My bias says I still don't like it, it's confounded by emotional loss and finsncial loss surrounding it.... baggage is baggage... what can I say?!
Announcement today about lithium in Argentina, due diligence or something aruther... don't care. Not for me.

 

[Dona Ferentes]

dusted, but not done yet.

latest bit of news that excited some was on 19 Jan. And closer to Perth office. closer than Lachlan fold belt, closer than Peru.... Handy when borders close.

HIGHLIGHTS:
• Maiden air-core drilling campaign has been completed on a nominal 200m x 200m grid patten for a total of 197 holes for 4,430 meters at LRS’s 100% owned Noombenberry Project in WA.
• Drilling intersected bright white kaolin up to 50m thick across the 18km² area drill tested which remains open to the north, south, east and west.
• Detailed test-work from the sampling from the Phase I drilling is underway, with Phase II samples dispatched to the Laboratory. LRS anticipates the initial results from test work in February 2021.
• Significant opportunity to extend the known Kaolinite occurrence along strike, with reconnaissance sampling identifying bright white kaolinite in dams some 15km to the north east, within LRS’s expanded tenement holdings
• Discussion and planning are underway for the generation of a maiden mineral resource estimate for the Noombenberry Project once all results have been received

(DNH )

 

[charlsie]

I've taken LRS for the Feb comp and backed it up with my 3rd purchase since September last year. Watching the chart climb from march last year gave me the impetus buy in and then buy in the dips.

 

[Dona Ferentes]

swinging into the HPA Halloysite camp (name change likely?)

HIGHLIGHTS:
• Results from the second batch of samples from the Noombenberry project have continued to show bright to ultra-bright white kaolin and high-grade Halloysite.
• Work has commenced on the construction of geological wireframes in preparation for the planned maiden JORC resource estimate.
• Results received so far from 50 of 197 holes drilled, with further results anticipated to be received in the coming weeks.
• Given shallow nature of the mineralisation, and consistency of assay results, and over $4.5 million cash at end of December 2020, the Company remains well funded to undertake additional drilling to extend the maiden JORC resource estimate, targeted for Q2 2021.

 

[System]

Results look good: Is Latin Resources the next Andromeda?