Latin Resources (ASX:LRS) will shortly begin initial drilling at Ilo Este, a large scale copper gold porphyry target in a tightly-held region, in Peru with results expected Q3 2014.
Ilo Este is a large scale, well defined copper-gold porphyry target in the middle of elephant country with potential to be a company maker if successful.
There is over 560,000 tonnes per annum of copper production and 125 billion pounds of copper in published resources and reserves within 130 kilometres of Ilo Este.
So the potential is there, in spades.
With a permit approved by Peruvian Ministry of Energy and Mines, drilling at 100% owned Ilo Este in August will follow up successful rock chip sampling where grades of up to 8.4% copper were reported.
This 3 square kilometre early stage target with confirmed copper gold mineralisation and alteration typical of porphyry systems was defined by surface (soil and rock chip) geochemistry, a ground magnetic survey and specialised geological and alteration mapping.
Early results for the program could be back as soon as Q314.
Latin’s Managing Director Chris Gale said: “Ilo Este is a 100% owned project of Latin Resources and potentially a company maker project if we achieve positive drill results.
"Therefore, we are extremely pleased to be preparing to drill Ilo Este in the next few weeks which we are confident will add significant value to the company going forward.”
Latin has permitted 13 diamond drill holes of between 800 metres and 1,000 metres depth, each angled at 60 degrees in order to cut across as much width as possible of the two mineralised porphyry belts while taking advantage of the access provided by existing tracks and topography.
In the first phase of drilling a total of four holes in the northern belt will be completed with results determining how the program will continue.
Drilling will commence on the first (northern) of two exposed mineralised porphyry belts, each 1.5 kilometres by 0.5 kilometres, within the previously reported 3 square kilometre surface copper anomaly.
Ilo Este is 6 kilometres from the Pan American Highway, railway and electrical substation, and 32 kilometres from the port of Ilo.
The initial upcoming drill program at Ilo Este is a key share price catalyst for Latin Resources.
This first stage of drilling is expected to provide indicative grades and depth of the system.
We would believe that Ilo Este would have attracted interest from majors although we would expect Latin Resource to be interested in drilling and retaining 100% interest at this stage.
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