LRS has signed an agreement that gives the company a direct path to 100% ownership of the prized Geminis Mine and surrounding Don Gregorio concessions.
The Geminis mine has been historically linked to lithium mining in San Luis and has been rated with high grade lithium bearing pegmatites.
Now LRS is in discussions with two plant owners/operators to enable a spodumene circuit to be added to the existing crushing plant.
Chris Gale, managing director, commented:
"The added bonus of securing a known lithium deposit in San Luis province that has had decades of mineral production could potentially develop Latin Resources into a new term producer.
"Latin Resources is very focused on developing a JORC resource over the coming months and then moving into production to take advantage of the buoyant and high lithium prices."
Value of the San Luis Province
The San Luis Province has an established small mining industry that actively produces quartz and feldspar for the glass and ceramics industry from literally hundreds of small mines.
There are around 100 miners in all of which the top five might produce nearly 75% of the total minerals, along with eight crushing/grinding plants that process and sell these minerals up the value chain for the ceramics and glass industry.
Importance of Primero Group in production plan
LRS has recently appointed Western Australian based Primero Group who are a turnkey design, construction and commission engineering company with specific experience on hard rock spodumene deposits.
The brief for Primero is to commence testwork on the company's Argentinian spodumene samples to determine a flowsheet to produce a spodumene concentrate.
Primero is experienced in hard rock lithium/tantalum projects and was called in as specialist engineers to revisit modifications after delays at Galaxy Resources Ltd's (ASX:GXY) Mt Cattlin operation in August 2016.
Therefore Primero brings to LRS significant experience as project managers in the construction, commissioning and ramp-up of other hard rock lithium/tantalum projects very similar to Mt Cattlin.
The acquisition of the lithium Geminis deposit coupled with the company's other lithium pegmatite concessions along with existing plant processing capacity in San Luis presents a unique opportunity to fast track production of spodumene concentrate.
Today's news further builds on the company's strategy of controlling all of the known hard rock lithium pegmatites in Argentina.
Field and drill permitting work has commenced on the Geminis Mine and Don Gregorio concessions.
Adding interest, LRS noted that the spodumene mineralisation is the best the technical team has explored in Argentina.
An example has the main pegmatite up to 18 metres thick, more than 200 metres long and gently dipping at 20-30 degrees.
Adding to the prospectivity, the area contains multiple similar unexplored pegmatites.
LRS remains focused on the lithium production prize and is, therefore, a stock to watch.