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Latin Resources excited by lithium prospects in Brazil’s ‘mining-friendly’ Minas Gerais region

The company’s resources are being directed at Brazil where it believes it can effectively execute exploration programs and deliver positive news and results in a timely manner.’

Geologists in underground mine in Brazil
Latin Resources geologists identify large spodumene crystals in an abandoned mine

Latin Resources Ltd (ASX:LRS) is excited by the lithium potential presented by the prolific yet underexplored Minas Gerais region of Brazil and is seeking to secure a number of priority one targets.

After enduring an ongoing lengthy wait for permitting in Argentina, the company has turned its attention to the world-class lithium region which is within a mining-friendly state and country.

READ: Latin Resources non-executive director acquires 7.5 million shares

Evidence of the Minas Gerais region’s prospectivity comes from Sigma Lithium Resources Corp (CVE:SGMA) (OTCMKTS:SGMLF) and Companhia Brasileira de Lítio (CBL), which are both active.

Sigma Lithium has world-class resource

Sigma has drilled out a world-class lithium resource base which stands at 45.7 million tonnes at 1.38% Li2O.

Latin’s managing director Chris Gale told Proactive Investors that it had not been sitting on its hands while enduring frustration associated with permitting delays in Argentina.

“The delays have allowed us to assess other opportunities and we have been looking at pegmatites in other countries.

“I was sent information on Sigma Lithium and we decided to have a look in the Minas Gerais region.”

He described the region, and wider Brazil, as one of the great mining jurisdictions of the world.

Latin Resources area of interest in northwest Minas Gerais, Brazil.

Existing lithium infrastructure

In terms of lithium, he said the company was excited with the existing lithium infrastructure in the region, which was still largely unexplored.

This includes a lithium spodumene plant that has been there for about 20 years as well as a newer lithium hydroxide plant.

“What appears to be a diamond”

Gale said: “We have taken advantage of the time lag, looked at other opportunities and come up with what appears to be a diamond.

“There is existing infrastructure that we don't have in Argentina which means we can hit the ground running.”
The company is seeking to obtain tenements in the Jequitinhonha valley region of Minas Gerais which hosts the Eastern Brazilian pegmatite province.

Geologists based in region

Latin Resources geologists have based themselves out of the city of Salvador in close proximity to the area of interest.

The team has just completed their third trip to the region and have continued to locate occurrences of spodumene never previously known or reported.

Sampling of pegmatite trenches.

Due diligence work

Due diligence is being carried out and upon completion, Latin intends to begin securing its top priority targets.

Focus will be given to well-advanced tenure which will allow the company to rapidly drill test any potential spodumene deposit and enable it to quickly be advanced to JORC compliant status.

Sigma is focused on 10 high-grade hard-rock lithium pegmatites, nine of which were past-producing lithium mines, yet have reported more than 200 pegmatites within their tenure.

CBL is mining spodumene pegmatites, producing a spodumene concentrate which is then transferred to a chemical plant in Divisa Alegre, Minas Gerais, where it is transformed into industrial-grade lithium hydroxide.

CBL underground spodumene mining operation.

Lithium hydroxide potential

Latin Resources is particularly excited by the opportunities this may present in the future for battery-grade lithium hydroxide production.

Gale said: “We have a bit more work to do in securing concessions but we are well and truly onto that and we will start seeing more news flow.

“To get confidence back in the company we have to secure new ground and start drilling.

“Excited” about potential

"The more we investigate Minas Gerais the more we get excited about the huge potential this underexplored region holds.

"This significant time investment into Brazil marks a broadening of the company’s lithium strategy as we work to identify lithium opportunities outside of Argentina.

"I am very confident that the company can quickly and effectively execute exploration programs in Brazil which we hope will deliver positive news to shareholders in a much timelier fashion.”

About the San Luis projects in Argentina, Gale said these still offered an outstanding opportunity to the company once permitting was completed.

Quick facts: Latin Resources Ltd

Price: 0.02 AUD

Market: ASX
Market Cap: $18.11 m

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