Latin Resources Limited (ASX: LRS) has completed trial mining test-pit to advance mine pit design and discussions with offtake partners at its 100% owned Cloud Nine Halloysite-Kaolin Deposit in Western Australia.
The company previously released a Maiden JORC (2012) Inferred Mineral Resource (MRE) of 207Mt of kaolinised granite including a sub-domain of 50Mt grading 6% halloysite – making Cloud Nine one of the largest undeveloped kaolin-halloysite deposits in Australia.
“The completion of the test-pit and collection of bulk samples is an important stepping-stone in the development of the Cloud Nine Project as a world class kaolin deposit,” Managing Director, Chris Gale, said.
“The bulk samples have now been sent to the potential customers for final analysis. We are also working on our scope of works, along with mine permitting for a DSO style product to sell to our potential customers. If the numbers stack up, Cloud Nine could develop into a great project for Latin Resources.”
A test pit has been successfully excavated at the Cloud Nine Halloysite-Kaolin Deposit. The objective of the test pit is to:
• Collect a large sample for bulk metallurgical testing; and
• Provide product samples to a number of potential offtake partners for their
qualification test work.
The test pit was excavated in accordance with the Program of Works, which was approved by DMIRS early in 2022, and successfully extracted the planned volume of kaolin.
Kaolin extracted from the test-pit will be used in bulk scale metallurgical testing, and importantly, will be used to prepare bulk product samples which will be sent to two separate groups currently in discussion with the company in respect to potential offtake agreements, this will enable them to undertake their own product qualification testing.
The company has previously provided multiple small-scale samples from Cloud Nine to these two parties. Discussions with both groups are ongoing and have included options to supply short term Direct Shipping Ore (DSO) products, as well as supplying value-added processed kaolin and halloysite products in the longer term.
Excavation of the test pit has also provided the company with valuable information to further refine preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions. Material samples will also assist with further testing and analysis to continue improving the understanding of the deposit including the overlying material.
A preliminary desktop environmental study has also been undertaken on the Cloud Nine Project site. Outcomes of this study will be used to inform the scope of work required to support the pathway to apply for the relevant environmental approvals in support of the project. This information is being factored into an updated forward work plan to support the development of the Cloud Nine Halloysite- Kaolin Deposit.
The company has also recently submitted a selection of samples of kaolinite for detailed Rare Earth Element (REE) analysis. REEs are commonly found in association with Kaolinitic clays, sometimes constituting a significant source of these strategic minerals.
For further information please visit: https://www.latinresources.com.au/
