Can Latin Resources’ JORC take it up to Andromeda?

Latin Resources (LRS) has continued to release exceptional results from its maiden air-core drilling program at the Noombenberry halloysite-kaolin project in Western Australia.

Latin Resources has named its first deposit the Cloud Nine Deposit – the first kaolin-halloysite deposit defined within the company’s larger Noombenberry project.

The Could Nine deposit is located on the company’s 100 per cent owned exploration licence E70/2622, which is situated approximately 350 kilometres to the east of Perth and to the south-east of the town of Merredin.

The resource looks to be better than $475 million capped Andromeda’s 210-million-tonne resource.

A global Inferred Mineral Resource estimate for the Cloud Nine deposit of 207 million tonnes of kaolinised granite has been reported by RSC, using an ISO Brightness (“ISO-B”) R457 cut-off of 75.

The Resource comprises two separate domains:

  • 123 million tonnes of bright white kaolin-bearing material; and
  • 84 million tonnes of kaolin/halloysite-bearing material.

Compared with Andromeda, LRS has drilled only the first of five of its projects within the Noombenberry project and its land holding is seven times the size of Andromeda.

While there is little variation between the sizes of companies’ resources, the Noombenberry Project offers a combination of benefits that could lead to cheaper production.

Andromeda has between seven metres and 62 metres of overlying hard silcrete caprock, compared with Noombenberry’s unconsolidated soil cover of less than four metres.

Thus it would appear that LRS offers lower mining costs with a lower strip ratio to AND, as ADN has significant overburden to remove before the ore can be accessed, ordinarily translating to higher mining costs.

Latin Resources is currently capped at $97 million and with the release of the mineral resource estimate (MRE) is now sitting on what could become the single-largest undeveloped kaolin-halloysite deposit in Australia.

Latin Resources’ halloysite project is one of Australia’s few known occurrences of ultra-high-grade halloysite – a naturally occurring nanotube.

Resource details

The Kaolin Domain granite resource contains a total of 73 million tonnes of bright white (+75 ISO-B) kaolin product with an ISO-B of 79 in the -45 μm size fraction, or 29 million tonnes of ultra-bright white (+80 ISO-B) kaolin product with an ISO-B of 82.

Both of these are considered high quality product specifications, potentially suitable for a wide range of industrial applications.

The global resource also contains a relatively contiguous halloysite domain within the kaolinised granite estimated at 50 million tonnes at an average grade 6 per cent halloysite using a 1 per cent halloysite cut-off, or 35 million tonnes at an average grade of 6 per cent halloysite using a +75 ISO-B cut-off it equates to 27 million tonnes at an average grade of 8 per cent halloysite using a +5 per cent halloysite cut-off.

The company now intends to expedite the next round of drilling to elevate some of the Resources to the Indicated or Measured classification for the purposes of a pre-feasibility study (PFS), which can all be funded with existing cash of more than $4 million at end of March 2021.

PFS coming

With the JORC out, Latin Resources will now immediately start technical studies to feed into a PFS.

It will also start its next round of drilling to commence in July 2021.

This is aimed at extending the Resource to the north and increasing the confidence of the MRE to a JORC Indicated and Measured classification.

The PFS will consider supply to a range of traditional end-users of kaolin-halloysite, as well as investigating the potential for downstream marketing of the high-grade halloysite to emerging new applications, including the carbon-capture and hydrogen storage markets.

 

 

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