Impact: Positive
Latin Resources reported an updated mineral resource estimate (MRE) for its 100%-owned Salinas Li-pegmatite project in Brazil. Total resources have increased by 56% to 70.3Mt, albeit with slightly lower grades of 1.27% Li2O (-4%). The updated resource includes the Colina, as well as the Fog’s Block target, located ~12km to the SW of Colina. We view this update positively as Latin has significantly advanced the Salinas project over the last two years, including completing ~65,000m of drilling in 2023, making new discoveries and demonstrating the district scale potential of the project. With a third phase now anticipated in the upcoming DFS (mid 2024), we expect the project to yield better economics even amidst the backdrop of declining spot Li concentrate prices. Drilling is set to continue at Salinas in 2024, with management targeting up to 100Mt at the project.