Australia

Latin Resources at “most exciting point in its history” says chairman

Latin Resources Ltd (ASX:LRS) (FRA:XL5) is at the most exciting point in its history as it makes a major turning point into the strong gold sector, according to chairman David Vilenksy.

A focal point is the recent acquisition of the highly prospective Yarara Gold Project in the Lachlan Fold belt of NSW, a proven gold region where multiple companies are reporting strong gold exploration results.

This new direction comes after the company secured strong joint venture partners to take its South American projects – Catamarca Lithium Project in Argentina and MT03 Copper Project in Peru – to the next stage.

ASX reflects “optimistic outlook”


In a letter to shareholders, the chairman said: “While the global economic outlook remains in a state of flux, the ASX seems to be reflecting a relatively optimistic outlook and many global commodities are enjoying a buoyant investment market.

“I would like to welcome all new shareholders and investors to Latin Resources Ltd and also to say thank you to our long-standing shareholders for their loyalty and patience.

“In past chairman's letters, a common theme has been to emphasise the importance that the board of the company places on rewarding shareholders and enhancing shareholder value.

“These objectives have not always been fulfilled for a variety of factors many of which have been beyond the control of the company. More to the point, what the company desires is success which inevitably results in an improved share price and market capitalisation.

“I am pleased to report that I believe the company is at the most exciting point in its history and the purpose of this letter is to help explain why I believe this to be the position.”

Shares have closed up more than 18% to 1.3 cents and have been trading higher since the close of 0.6 cents on July 14.

“Transformational” projects


Vilenski explained that the strategic focus of LRS over many years had been to identify and explore potential value accretive minerals projects in the richly endowed South American continent and identify and secure JV partners for these projects.

“This journey has brought much experience and knowledge to the company and also some disappointment,” he said.

“That said, I am pleased to inform you of several transformational projects that have come about as a result of adherence to our long-term strategy.

“The MT03 Copper project in Peru and the Catamarca lithium project in Argentina have both now secured strong joint venture partners to take the projects to the next stage.”

“Major turning point”


He added: “We believe the new Yarara Gold project that has recently been announced reflects a major turning point in the company's growth and trajectory for long-term value to shareholders.”

Map

Yarara, which offers a near-term, proven mineralised project, is 70 kilometres east of Albury and LRS has entered into a binding farm-in agreement to earn up to 75% of the project which hosts three target areas:

  1. Yarara Reefs, (North): hosts structural gold mineralisation in sediments, a major shear provides focus for exploration;
  2. Carboona (Centre): known mineralisation includes multiple metals including tungsten, lead, tin, gold and silver; and
  3. Ournie (South): Ournie Goldfield contains historic workings for gold and silver in granite host.

Historical mining includes average grades of 16-37 g/t gold for 26,036 ounces between 1870 and 1935 at the Rangaritia, Perseverance, Four Mile/Mountaineer and Just In Time gold mines in the area.

Vilensky said: “We cannot wait to get a deeper look down from the historic surface mines.

“To this end, our geologists will commence work on the site once permits have been approved and will plan for the next stage of geochemical sampling and a well-defined drill program.

“The exploration tenements are granted which means the company can expect drill permits to be approved very quickly once initial exploration work is completed.”

Noombenberry plans


Another project closer to home that the WA-based company is encouraged about is the Noombenberry Halloysite-Kaolin Project 300 kilometres east of Perth, which it acquired in late 2019.

LRS has carried out fieldwork including having soil sampling assayed by an independent expert being First Test Minerals, a United Kingdom-based kaolin and halloysite specialist.

Results presented by the independent expert have confirmed the prospectivity of the project.

The chairman said: "These results were very encouraging and give confidence to further explore the project via a deeper and expanded drill program.

"The Exploration Lease has now been granted and the drill permit has been lodged so the company can expect to start drilling the project within this quarter."

He said the company would pursue an aggressive drilling program to test the deeper zones of the surface profile (0-30m) to test for commercial qualities of kaolinitic/halloysite material.

South American partners


Vilensky explained that iRead More – Source