Some very promising mineralisation has been identified at the Guadalupito Iron and Heavy Mineral Sands Project, which Peru focused Latin Resources (ASX: LRS) has an option and lease agreement over 6 mining concessions totalling 2,218 hectares.
Two magnetic concentrates identified up to 64% iron and 5% titanium, with gold grades of potential economic significance, and quantities of the rare earth elements; lanthanum, cerium, neodymium and thorium were identified in monazite.
By way of comparison, these concentrates were comparable to iron concentrates produced from an operating iron sands mine in New Zealand.
Interestingly, Monazite accounted for more than 1% of two mini-bulk samples, providing encouragement for the company to continue evaluating the economic potential of this mineral at Guadalupito.
Monazite is a reddish-brown phosphate mineral containing rare earth metals and is an important source of thorium, lanthanum, and cerium.
Managing director of Latin Resources, Chris Gale said significant quantities of the rare earth elements of lanthanum, cerium, neodymium as well as thorium were identified in Monazite.
He said Latin, "Is encouraged that these minerals are also present in a liberated form and will continue to evaluate their economic potential as part of the Guadalupito project."
Latin signed an option to buy agreement with the owners of the property with a 6 month due diligence period to collect samples for mineral sands analyses with GBRM of Perth.
The concessions are located in uninhabited coastal desert with surface land owned by the Peruvian Government.
Of major importance, the port town of Chimbote is just 25 kilometres south of the project along the paved Pan American highway, which passes within 5 km of the project.
Chimbote is host to Peru's largest iron smelter which is owned by the Brazilian based Gerdau Group, the leading long steel producer in the Americas.
These initial results are important as they confirm the presence of a number of minerals of economic interest in free forms, where no milling would be required to liberate the economic minerals from the unconsolidated bulk material.
Latin said it is very pleased with the initial results because of the coincidence of positive results; the liberated nature of the minerals, their apparent quality and/or alignment with market requirements, and the variety of commodities present.
This provides the company with enough encouragement to continue evaluating processing alternatives, and to undertake a more systematic evaluation of the concessions under its control for their resource potential during 2011.
With high grade assays of up to 64% iron and 5% titanium, and rare earth elements, Latin Resources' option and lease agreement over mining concessions in Guadalupito, Peru totalling 2,218h offers intriguing potential for the company.