Latin Resources (ASX: LRS) could be sitting on the country’s largest undeveloped Kaolin-Halloysite deposit after successfully measuring its maiden resource.

The Australia-based explorer’s aptly-named Cloud 9 deposit – part of its larger Noombenberry Project in Western Australia – holds 84 million tonnes of kaolin/halloysite bearing material.

The deposit’s halloysite subdomain yields 50Mt halloysite at 6% grading with a 1% cut-off or 27Mt halloysite at an 8% grading with a 5% cut off, the company reported in a recent market update.

This gives it the potential to be the largest single undeveloped kaolin/halloysite deposit in Australia, with substantial potential for growth in all directions surrounding the measured resource.

Speaking on Reach Markets’ fortnightly The Insider: Meet the CEO webcast, Latin Resources’ executive director Chris Gale commended his team for defining the world-class resource despite the challenges posed by the COVID-19 pandemic.

 “This massive result adds enormous value to LRS and will elevate the company to a new level.” he said.

The company drilled to just over 4000 metres and collected 720 samples. Subsequent testing indicated widespread, high purity kaolinite and halloysite.

The Noombenberry Project is one of the few sites in Australia with high-grade halloysite. With broad applications in new technology including hydrogen storage, carbon dioxide capture, super capacitors and batteries, halloysite has strong revenue potential. 

Latin is now working towards the next round of drilling which will be funded with the company’s existing cash reserves.

“We will now look to fast track the deposit through to development as quickly as possible to take advantage of the buoyant mineral prices,” added Chris.

As well as the Noombenberry Project, Latin has Yarara and Manildra Gold Projects in NSW currently in progress. 

“We’re moving onto the ground and we’re defining our targets. We hope to have the land access agreements signed within the next month which will allow us to start drilling very soon,” said Chris about the Yarara and Manildra Gold Projects when he presented on The Insider: Meet the CEO. 

During the webcast he also discussed Latin’s other lithium and copper exploration projects in Peru and Argentina. Despite COVID-19 presenting some challenges for the company’s South American projects, the company is strengthened by a joint venture with Integra Capital, an Argentine private equity group.

“It’s the perfect fit for us to get on the ground with this local group who can help us with permits etcetera,” said Chris. 

“Once the COVID situation has fully dropped off, we’ll be back out there in the field doing our work on these projects,” he explained.

With a market cap of $89 million, over $5 million in funds available, and a very liquid stock, Latin Resources is well positioned for growth in the coming six months.

Chris Gale recently joined us for our fortnightly webcast ‘The Insider: Meet the CEOs’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session.

‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies future prospects.

The Insider: Meet the CEOs – Event Details: Date: Wednesday, 9th June Time: 12pm AEST Format: Online, 3 x 15 minute presentations

This is a free event. Click here to book your spot.

Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position. Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you. 

Sources:

• Latin Resources, 207Mt Maiden Inferred Mineral Resource Estimate, Nommbenberrt Kaolin-Halloysite Project