Impact: Positive
Latin Resources (LRS) reported initial rare earth elements (REE) results from its recent drill program at the Cloud Nine halloysite-kaolinite deposit at its 100%-owned Noombenberry project in Australia. Results confirmed widespread clay-hosted REE mineralization and contained a high proportion of magnetic rare earths. In our view, the demonstration of REE potential makes the Cloud Nine deposit more attractive. However, we consider this to be a non-core asset for LRS and expect most eyes to remain on its flagship Salinas Li-pegmatite project in Brazil, where a maiden resource is due by year-end.
