Latin Resources on Cloud Nine with maiden 207 million tonnes kaolin-halloysite resource at Noombenberry

Latin Resources Ltd (ASX:LRS) (FRA:XL5) is on Cloud Nine after establishing a “globally significant” maiden inferred mineral resource estimate of 207 million tonnes at Noombenberry Kaolin-Halloysite Project in Western Australia. Cloud Nine is the first deposit defined within the larger Noombenberry project and potential to become the single-largest undeveloped kaolin-halloysite deposit in Australia with potential for future growth. Prepared by independent consultant RSC Global Pty Ltd, the estimate comprises two separate domains: 123 million tonnes of bright, white kaolin bearing material; and 84 million tonnes of kaolin / halloysite-bearing material. “It really puts us on the map” Latin Resources exploration manager Tony Greenaway said: “We are thrilled to have identified this globally significant kaolin-halloysite resource within only 18 months since acquiring the Noombenberry Project. “It really puts us on the map in this emerging sector and provides a remarkable opportunity to potentially push Latin from explorer to producer within a brief period.” Shares have been almost 20% higher in early trading to A$0.085 and at that price, the company’s market cap stands at approximately A$110 million. Expediting drilling The company 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 will be funded with existing cash of more than $4 million at end of March 2021. Greenaway added: “We look forward to commencing the next round of drilling in July, which will have a dual focus of both uplifting the current resources to indicated or measured status, and resource growth.” The halloysite sub-domain yields 50 million tonnes grading 6% halloysite using a 1% halloysite cut-off, or 27 million tonnes grading 8% halloysite using a 5% halloysite cut-off within the minus 45- micron (-45 µm) subfraction. Cloud Nine’s global kaolinised 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 29Mt of ultra-bright white (+80 ISO-B) kaolin product with an ISO-B of 82. “Massive result adds enormous value” Executive director Chris Gale also reflects the company’s confidence by saying: “My fellow directors and I are extremely pleased that Latin has achieved this outstanding milestone for the company. “Our exploration team has excelled in defining a world-class deposit despite the challenges of a difficult COVID environment. “This massive result adds enormous value to LRS and will elevate the company to a new level. “We will now look to fast-track the deposit through to development as quickly as possible to take advantage of the buoyant mineral prices. “I would also like to extend my sincere thanks to the landowners in Merredin for being so accommodating during the exploration and drilling process." Next round of drilling in July Latin Resources plans to begin technical studies to feed into a PFS, along with its next round of drilling to start in July 2021 aimed at extending the resource to the north and increasing the confidence of the resource estimate to 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. With cash of $4 million in hand at end of March 2021, no debt, and very low drilling costs due to the shallow deposit and limited cover, Latin is well placed to deliver infill drilling and resource growth with existing cash resources.