Impact: Very Positive
Latin Resources announced results from a pilot scale, dense medium separation (DMS) test on ore from the Colina deposit, part of its 100%-owned Salinas project in Brazil. The test achieved a spodumene concentrate grading 5.5% Li2O at a recovery rate of 93.1% using a coarse grain sample grading 1.38% Li2O. We view these results very positively as they compare favourably to other hard rock Li projects and demonstrate that the Colina deposit is amenable to simple DMS processing, leading to significant capital and operating cost savings. While a coarse DMS product is more favourable for conversion into lithium hydroxide, we believe these initial results give the company plenty of options down the road, to try and improve concentrate grades for added revenue. Furthermore, with ~26,000m of drilling planned for the balance of the year, we believe there is further potential to expand Colina as well as make additional discoveries at the Salinas project.
