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Latin Resources attracts investors as news flows from Argentina and Peru

The company is discussing joint venture and offtake for its lithium assets in Argentina.
Latin Resources attracts investors as news flows from Argentina and Peru
The company's shares have been on the rise recently

Latin Resources Ltd's (ASX:LRS) shares have more than doubled to $0.01 over the past six weeks' as the company continues to advance its assets in South America.

The company is set for strong news flow into 2018 on both the lithium and cobalt front, while also being leveraged to the improving copper price.

READ: Latin Resources lithium strategy attracts investment from Asian fund

First up Latin Resources has received the go-ahead to order equipment for the UnCuyo University spodumene technology first stage pilot plant, with construction to commence in January 2018, and should be completed in February.

The initial investment is minimal and in the vicinity of USD$50,000, with a further investment to scale plant to full pilot plant size.

Initial test work will commence in March 2018.

If proven successful the test work will lead to the building of a full scale pilot plant to further prove the process of turning a spodumene concentrate into a lithium carbonate product over which Latin Resources has secured a technology license agreement.

Chris Gale, managing director, commented:

"Latin Resources has now set a strong foundation in 2017 to commence serious development of its lithium projects in Argentina.

"The plan to develop a JORC resource and then move into a pre-feasibility study proves to be exciting times for Latin in 2018."

Loma Pelada, Catamarca

Mapping and sampling have been completed at the Lomo Pelada project in Catamarca province.

Historical mapping and a first pass visit in early 2017 showed the likelihood of multiple sub parallel pegmatites.

This has now been confirmed with drill targets currently being determined with drilling to commence in the first-quarter of 2018.

Coming up

Latin Resources will undertake exploration and resource development drilling at the Maria del Huerto project in San Luis commencing in late January 2018 once the drilling operator has been appointed.

Drilling will be funded from existing cash resources.

Metallurgical test work will be carried out on a material derived from drill core, and the company strategy is to run the scoping study in parallel with the drilling to determine a JORC resource in respect of its lithium projects in Argentina.

The purpose of this work is to provide Latin Resources an indicative CAPEX for a stand-alone process plant.

Adding to the news flow, concession applications covering over 98,000 hectares in San Luis are expected to be granted early 2018.

Moving to cobalt

At the La Rioja Cobalt project, the consultants that submitted the concession applications and completed the supporting EIA’s have advised that the approvals of the EIA’s and the issue of the concessions is imminent.

They also advise that geological work such as mapping and sampling can be carried out now.

Consequently, fieldwork will commence in the first-quarter of 2018 for further mapping and sampling to assist in determining drill targets.

Copper leverage

First Quantum Minerals has commenced an induced polarization geophysics program on the MT03 copper concessions in Ilo District, Southern Peru.

The data will be analysed and on completion used to generate drill targets with the drill permitting to commence shortly thereafter.

Gale added: "The possibility of First Quantum drilling our copper project in Ilo along with our new sister company Westminster Resources developing our other Ilo copper projects adds further value to LRS with copper prices recently reaching 5 years highs."

Also, the sale of the company's copper assets in Southern Peru to Westminster Resources Ltd (TSXV:WMR) is nearing completion.

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