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LRS FA Long
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LPD today hit a post placement
Mkt Cap of $100m (2,
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LRS looks like an comparable peer at an earlier stage so plenty of upside from current levels of
$10M Mkt Cap & $1.5M EV
Latin Resources secures option over lithium extraction technology
15:15 05 Oct 2017
Latin now has a unique opportunity to fast-track lithium carbonate production.
A lab-scale pilot plant will be built to test the technology
Latin Resources (
ASX:LRS) has signed an option agreement for an exclusive licence to use patented lithium extraction technology in Argentina, Australia, China, Canada and the U.S.
The patented, environmentally-friendly, spodumene to lithium carbonate technology was developed by the National University of Cuyo (UnCuyo) in Mendoza, Argentina.
Importantly, this technology will potentially allow Latin to develop its large-scale hard rock spodumene pegmatite projects in Argentina into lithium carbonate production.
Latin has over 1,000 square kilometres of prospective exploration concessions in the lithium pegmatite districts of Catamarca and San Luis Provinces in Argentina.
The company’s focus is on developing a JORC resource over the coming months and then moving into design phase for a spodumene concentrate plant.
Chris Gale, managing director, commented
“The securing of a lithium carbonate technology is another step forward for Latin Resources to move into the lucrative production of the highly valued electric battery minerals market.
“The current price of spodumene concentrate is $700‐$900 compared to lithium carbonate price of between $12,000-$15,000, this will add incredible value if the technology is proven successful at commercial scale.”
Opportunity to fast-track production
The company’s lithium exploration projects together with
existing plant processing capacity in San Luis presents a unique opportunity for Latin Resources to fast-track production of spodumene concentrate.
READ: Latin Resources identifies high-grade lithium at newly acquired Geminis Mine
The successful development of the lithium carbonate technology would then enable Latin to provide the full value chain of processing hard rock to spodumene concentrate to lithium carbonate for the expanding global electric battery market.
The strategy moving forward is now to produce a maiden JORC resource, to run in parallel with the design and permitting of a spodumene plant to add to an existing mining plant operation in San Luis.
Lithium extraction technology
The UNCuyo researchers discovered and developed the technology as an alternative to the current method of lithium extraction.
The rock is crushed and, through chemical treatments, the lithium is recovered in the form of salts.
The method is environmentally friendly, and it leaves no environmental legacies which other procedures do that are currently being used for lithium carbonate recovery.
Dr Mario Rodriguez, researcher, commented: “It is an alternative process that lowers the costs and makes intensive use of the mineral besides lithium; several commercially important products are also obtained through the process."
Proving the technology
Pursuant to the agreement, Latin will support the development of the technology through the financing and scaling up of the technology.
The first stage of funding to be provided by Latin will enable UnCuyo to build a lab scale pilot plant to test the technology within their Mendoza campus.
The second stage funding will then allow UnCuyo to build a full-size pilot plant to test the technology at a commercial scale level.
Catamarca, Argentina
- On 31 May 2016 the Company announced it had made claim applications over 70,000 hectares in seven exploration tenements in the Catamarca Province, prospective for Lithium Pegmatites.
- Following extinction of a series of abandoned claims by the Mining Authority of Catamarca, Latin has applied for additional exploration tenements over 7,051.6 hectares that were surrounded by the initial exploration tenement applications in two areas, Vilisman and Ancasti, each with past Lithium mining activity and that together host in excess of twenty Lithium bearing pegmatite deposits documented by various authors in publications made over the last 50 years.
- Combined estimates of Spodumene content within 15m of surface of 12 of these deposits subject of the latest claim applications are in excess of 120,000 t (Acosta et al 1988, Balmaceda & Kaniefsy 1982 and other non-JORC foreign publications).
- These Lithium bearing pegmatite deposits have a history of small scale past production, having been intermittently exploited for Lithium minerals, and associated Beryl, Tantalum and feldspars during the 1950’s and 1970’s.
- Analysis of four samples collected by Latin geologists of exposures of spodumene in old mine workings in three pegmatite deposits within the new claim applications reported grades of 6.6%, 7.1%, 6.3% and 4.9% Li2O respectively.
The two tenements cover the Vilisman and Ancasti Pegmatite Groups referred to in the Company’s announcement of 31 May 2016, and each host a number of well documented Lithium bearing pegmatites near the townships of Ancasti and Vilisman (Figure 2), each located on the eastern slopes of the Ancasti Ranges some 40 km from the Provincial Capital, San Fernando del Valle de Catamarca (Figure 1).
Figure 1: Location of the mining friendly Catamarca Province, its capital, and the Ancasti Ranges in NW Argentina.
Pegmatites of the Ancasti Ranges:
Various studies of pegmatites in the Ancasti Ranges have been reviewed: Herrera (1964), Rossi (1965), Fernández Lima et al. (1970), Marconi (1972), Balmaceda (1982), Balmaceda and Kaniefsky (1982), Lottner (1983), Acosta et al. (1988) and Galliski (1992a, 1994a, 1994b).
Acosta
et al (1988) grouped a series of lithium-bearing pegmatites occurrences in the Ancasti Ranges into two groups, geographically located within several kilometres of each of the Vilisman and Ancasti townships.
Figure 2: Location of the Vilisman and Ancasti Lithium Pegmatite Groups, (Solid red areas), with old mines marked. Latin’s claim applications now cover the orange shaded areas extending outwards from, and also including the known Lithium deposits.
The Vilisman Group hosts at least 8 pegmatite deposits that have evidence of past mining activity. Six of these are individual dykes emplaced along structures in banded mica schists, while two are formed as multiple dykes. Most of the dykes outcrop over at least 100 m of strike length with thicknesses of between 1 m and 5 m (Table 1). Acosta
et al (1988) mentions 11 other deposits in the Vilisman Group that were visited as part of this work, but cites insufficient data preventing their inclusion in the tabulated list, despite having observed good mineralisation and workings.
Table 1: Dimensions and estimated spodumene content within 15 m of surface in pegmatites from the Vilisman Group (after Acosta et al 1988).
Cautionary Statement: These data are published historical foreign estimates not reported in accordance with the JORC Code. A competent person has not done sufficient work to verify the data in accordance with the JORC code and it is uncertain that following evaluation and/or further exploration work that these foreign estimates will be able to be reported in accordance with the JORC Code.
Data from Acosta et al (1988) and Balmaceda & Kaniefsky (1982) were compiled to prepare a table for the pegmatites of the Ancasti Group (Table 2) comparable to that presented for the Vilisman Group after Acosta et al (1988) (Table 1). These are individual dykes emplaced along structures in banded mica schists with well differentiated zoning. There are apparently fewer identified Lithium pegmatite deposits in the Ancasti group but these are relatively larger in terms of strike length and width relative to those of the Vilisman Group.
Table 2: Dimensions and estimated spodumene content within 15 m of surface in pegmatites from the Ancasti Group (after data from Acosta et al, 1988 and Balmaceda & Kaniefsky, 1982).
Cautionary Statement: These data are published historical foreign estimates not reported in accordance with the JORC Code. A competent person has not done sufficient work to verify the data in accordance with the JORC code and it is uncertain that following evaluation and/or further exploration work that these foreign estimates will be able to be reported in accordance with the JORC Code.
Analytical Results from Latin Sampling
Latin geologists collected 4 samples from spodumene exposures in the intermediate zone of pegmatites exposed in old workings on a visit to the area in May 2016 (Table 3).
Table 3 – Analytical Results of Spodumene samples collected by Latin Geologists from old Mine Workings.
Results confirm Lithium content typical of Spodumene exposed to minor weathering due to surface exposure to the elements.
Historical Foreign Estimates of Mineralisation
The historical foreign estimates of mineralisation in Tables 1 & 2 are modified from data published in Acosta et al (1988) and Balmaceda & Kaniefsk (1982), both Spanish language publications translated as follows:
Acosta et al (1988): “Geoeconomic Study of Pegmatites” and was undertaken by the Provincial Government of Catamarca as part of an agreement between the Department of Mines and the [Argentine] Federal Council of Investment.
Balmaceda & Kaniefsky (1982): “Characterisation of two Spodumene Pegmatites located in Catamarca and San Luis, Argentina” published in the Acts of the Fifth Latin American Geology Congress in Argentina in 1982.
These authors undertook field work including descriptions and mapping of the geology, mineralogy and measurements of size of the Lithium bearing pegmatite dykes and their internal structure where these were encountered within the Vilisman and Ancasti Groups, within the tenement areas that have now been applied for by the Company. The works also included details of trenching and modal estimates of spodumene (lithium silicate) content within the different mineralised zones of each pegmatite. This method of estimation of spodumene mineral content is considered appropriate considering the large size (up to 1 m) of the spodumene crystals and subsequent difficulty in obtaining representative samples to estimate grade through chemical analysis.
The historical foreign estimates as presented do not use categories of mineralisation and are considered by the Company to be only indicative of the mineralisation style and estimated according to the terms presented: considering strike length and thickness of the respective pegmatite bodies, qualified by a modal estimate of spodumene content to a relatively conservative depth extent. Tonnages are arrived at by calculating a volume of spodumene within the overall pegmatite body by simple mathematics and then applying a nominal and theoretical density to the volume of Spodumene estimated.
Santa Gertrudis Mine Workings (Ancasti Group)
San Luis, Argentina
- Latin Resources has claim applications over 24,769 hectares in six exploration concessions and one vacant Lithium mining concession within the Conlara and Estanzuela pegmatite fields have been lodged at the mining authority in the San Luis Province, Central Argentina.
- The six exploration concessions each surround pegmatites dykes known to have been mined in the past for Lithium minerals (as spodumene or lepidolite) and/or other related minerals including quartz, feldspar, beryl, tantalite (tantalum mineral) and colombite (niobium mineral).
- Latin has also claimed the “Maria Del Huerto” mining concession, comprising three parallel dykes where spodumene was mined between 1936 and 1940.
- The main working at “Maria del Huerto” measures 110 m x 15 m and has been excavated to only 10 m depth. Spodumene crystals of up to 1 m in length have been recorded.
- Drilling of “Maria del Huerto” planned to commence in 1st Quarter 2017.
A total six exploration concessions have been claimed within the Conlara and Estanzuela pegmatite fields. Each claim surrounds documented lithium bearing pegmatite deposits that have been mined in the past for Lithium bearing minerals (spodumene or lepidolite) and/or other related minerals including quartz, feldspar, albite, beryl, tantalite (tantalum ore) and colombite (niobium ore).
Table 1: Details of Latin’s new claim applications in San Luis Province, Argentina.
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
| 1 |
Claim No. |
Reference Name |
Pegmatite Province |
Area |
| 2 |
63-C-2016 |
La Meta |
Conlara |
5,000 ha |
| 3 |
64-C-2016 |
La Estanzuela |
La Esanzuela |
7,976 ha |
| 4 |
65-C-2016 |
El Portazuelo |
La Esanzuela |
1,988 ha |
| 5 |
66-C-2016 |
Tilisarao |
La Esanzuela |
3,838 ha |
| 6 |
84-C-2016 |
San Francisco |
Conlara |
3,977 ha |
| 7 |
85-C-2016 |
Puerta Colorada |
Conlara |
1,990 ha |
| 8 |
134-Q-1936 |
Maria del Huerto |
Conlara |
18 ha* |
| 9 |
|
|
TOTAL |
24,789 ha |
* The Maria del Huerto mine is located with the bounds of the 1,990 ha Puerta Colorada exploration tenement, thus does not add to the total area claimed.
A number of smaller mineral rights are enclosed by, (but excluded from), the six exploration claims made: one of which, the “Maria del Huerto” mining concession, is enclosed by the Puerta Colorada exploration claim and was claimed for the Company after being declared vacant by the Provincial mining authority. The Maria Del Huerto deposit was mined between 1936 and 1940 and was one of the first spodumene producers in the San Luis Province to have good grades. (Roquet et.al. 2006).
There are three pegmatite fields in San Luis, and each with an important past record of producing mica, beryl, spodumene (Lithium), tantalite, and lastly, K-feldspar, albite and quartz. El Totoral and Conlara fields are placed in the Sierra Grande de San Luis and La Estanzuela is situated in the La Estanzuela, El
Portezuelo, and Tilisarao mountain ranges (Galliski & Marquez-Zavalía, 2011). The Company’s claims focus on the Estanzuela and Conlara fields as well as the western margin of the Totoral field (Figure 2).
Figure 2: Location of the Latin’s new Exploration and Mining Claims (orange polygons) prospective for Lithium bearing Pegmatites in North Eastern San Luis Province, Argentina. The base map is a schematic geological map of the San Luis ranges showing the location of the 1: El Totoral, 2: Conlara and 3: La Estanzuela pegmatite fields. (After Galliski & Márques-Zavilía, 2011).
The pegmatites of the three fields in Figure 2 are hosted in metamorphic complexes of medium grade, intruded by orogenic and postorogenic granites. The medium-sized pegmatites are representative of several types and subtypes as beryl-columbite-phosphate, spodumene, albite-spodumene and albite (Galliski & Marquez-Zavalía, 2011).
The Puerta Colorada Exploration Claim and the Maria del Huerto Mining Concession.
The Puerta Colorada Claim (Figure 3) is located in the Conlara pegmatite field, and encloses a number of mining concessions including the Maria del Huerto mining concession, also claimed by the Company after it was declared vacant by the Provincial mining authority.
The majority of the enclosed third party mining rights are expected to be excluded from the exploration claim and are predominantly pegmatites mined intermittently at a small scale for quartz and feldspar. The remainder is considered prospective for Lithium bearing pegmatite dykes and will be explored once the claim is granted and permits are in place.
The Maria del Huerto mining concession has been claimed for Latin, and is located 20 km west of the town of Concarán along the sealed Provincial Route 6 road. The concession hosts three parallel pegmatite dykes located only 300-400 m from the road.
The dykes are tabular to lenticular outcropping over 370 m, each with a strike NE-SW (Figure 4). While all three dykes show evidence of past workings, the central dyke has the most significant open pit being 105 m long, 15 m wide and excavated to a depth of almost 10 m. Zonation is well developed and asymmetric, with clearly developed zones defined as border, external, intermediate external, intermediate internal and nucleus. The Lithium mineral Spodumene occurs as prismatic crystals from a few centimetres to over a metre in length, in various colours from pale green through white to pink and lavender, occurring predominantly in the intermediate zones and nucleus of the dyke. (Roquet et.al. 2006).
Figure 3 – Plan of the Punta Colorada Exploraiton Claim, including the Maria del Huerto Mining Concession.
Latin has confirmed the presence of pink coloured, weathered spodumene in the main pit exposure (Figure 5& 6).
Figure 4 – Geological Mapping of the Maria del Huerto Pegmatite showing the spodumene bearing intermediate zones and nucleus exposed over the entire width of the open pit (Roquet et.al. 2006).
Figure 5 – Examples of pink coloured weathered spodumene in the Maria del Huerto open pit (Intermediate Zone).
Figure 6 – View to the South Western end of the main pit at Maria Del Huerto.
La Estanzuela Pegmatite Field: Tilisarao, Estanzuela and Portezuelo Exploration Claims
Three exploration claims have been made over the “La Estanzuela” pegmatite field, the Eastern most occurrences of lithium bearing pegmatites in the San Luis Province. This pegmatite field was defined by Galliski (1994a) as comprising the pegmatites of the Tilisarao, La Estanzuela and El Portezuelo ranges and the claims cover all available outcrop in these ranges (Figure 7).
Most of the pegmatites of this district include representatives of the Lithium-Caesium-Tantalum (LCT) petrogenetic family, rare-element class (REL), REL-Lithium subclass, with complex types of spodumene and lepidolite-subtypes, and of albite-spodumene type. In general, the pegmatites are irregular lens-shaped bodies, tens to hundreds meters long, and besides the usual rock-forming minerals, the pegmatites carry spodumene (lithium), beryl, tourmaline, lepidolite (lithium), colombite group minerals (tantalum), wodginite group minerals (tin/tantalum) in one pegmatite, amblygonite-montebrasite (lithium), triphylite-lithiophilite (lithium) and the array of secondary phosphate species. (Galliski & Marquez-Zavalía, 2011).
The Viquita and San Elias mines boast significant past production of the lithium bearing minerals spodumene and lepidolite respectively. While excluded from the Company’s claims, these deposits highlight the prospectivity of the Estanzuela field for Lithium pegmatites.
Figure 7 – Latin’s exploration claims in the Estanzuela pegmatite field which comprise all available outcrop in the Tilisarao, El Estanzuela and Portazuelo mountain ranges.
The El Totoral Pegmatite Field: San Francisco Exploration Claim
The San Francisco exploration claim covers approximately 13 km along strike of structures interpreted to be significant for the emplacement of the Geminis pegmatite, exploited for spodumene last century. There are significant outcrops of pegmatites along the structural trend forming swarms of considerable number particularly in the North Eastern half of the claim.
Figure 8 – Plan of the San Francisco Exploraiton Claim. The Geminis mine surrounded by the claim was exploited for spodumene last century.
The Company has claimed a significant land package with good potential for significant lithium bearing pegmatite mineralisation and is proceeding with the formalities required to commence exploration of the concessions. Clearly the Maria del Huerto mine concession is a significant addition to Latin’s lithium portfolio in Argentina and is ripe for contributing to Latin’s Lithium resource generation program in the near future.
Drilling at Maria del Huerto will commence once the environmental study along with the drill permits are approved by the San Luis mining authorities which is expected to occur early 2017. The resource will be defined according to the JORC code mineral resource estimates should the data produced allow such estimates to be prepared.
