Latin Resources (ASX: LRS) reports that it has secured an exclusive and binding 24-month option agreement over an additional tenement to grow its 100% owned Salinas Lithium Project in Brazil
The agreement for the ‘highly-prospective’ Lajinha tenement could see the company acquire a 100% interest in the tenement
and demonstrates an expansion of the company’s footprint east of their existing Bananal Valley Project
The company notes that recent drilling conducted on Latin’s existing tenements have returned ‘high-grade’ lithium grades of spodumene pegmatites within this region
Latin Resources Managing Director Chris Gale said: “We are very pleased to have secured the Lajinha tenement area
we continue to expand our foothold in this developing regional lithium pegmatite field
Our preliminary reconnaissance mapping and outcrop sampling of this area has confirmed the presence of spodumene pegmatites
Our regional mapping team will now complete a more systematic survey to better understand the extent of the known pegmatite system and select initial drill sites
“Our preliminary reconnaissance mapping and outcrop sampling of this area has confirmed the presence of spodumene pegmatites”
With resource definition drilling underway at our main Bananal Valley area
first pass drilling underway at our Monte Alto area
first pass mapping and sampling completed at our Salinas South area; and now the initial systematic work to commence at the new Lajinha tenement – this provides the company with a full project lithium development pipeline in the Salinas Region
Now the company has made a significant new lithium discovery
this strategic expansion approach to our exploration is critical for long-term success of developing our first maiden JORC Resource.”
This acquisition grows the company’s ground position to over 6,230 hectares
which encompasses a number of key targets along the prospective lithium corridor
Latin has the option to acquire a 100% interest in the tenement upon payment of BRL3,000 (USD$600 per month for 24 months)
If the company exercises the agreement’s call option
issue shares to the value of USD$10,000 at a 30 day VWAP; and c
pay an additional USD $50,000 within 13 months
the vendor will retain a 3% net smelter royalty
if Latin is able to define a JORC resource of at least 10,000,000 tonnes @ 1.3% Li
the vendor will receive an additional USD $50,000 plus USD$50,000 worth of shares
The Salinas Project is located within the north-east region of Minas Gerais
The Project is host to outcropping pegmatites that contain spodumene over an area of more than 4km²
Latin Resources reports that it has moved forward with first pass drilling west of the newly acquired Lajinha tenement and will mobilise a regional mapping team in order to identify potential drill sites
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