Latin Resources Limited (ASX: LRS) has kicked off a geotechnical diamond drilling programme at the 100% owned Cloud Nine Halloysite-Kaolin Deposit in Western Australia.
The company released its maiden Mineral Resource Estimate (MRE) of 207Mt Inferred Resources at Cloud Nine in May 2021.
Latin has also submitted permitting applications to allow the excavation of a test-pit to provide further bulk samples to several potential offtake partners.
The planned drilling of up to ten PQ (85mm) diameter drill holes aims to provide sufficient representative core samples from within the footprint of the existing JORC MRE, for detailed density and geotechnical analysis.
The density data is an integral part of the ongoing resource estimate work at Cloud Nine aimed at increasing the confidence levels in the current Inferred JORC resource, while the geotechnical data is required for the mine design and scheduling work currently underway as part of the company’s Pre-Feasibility Studies (PFS) and other studies.
Topographic Drone Survey
Survey contractors have mobilised to the Cloud Nine site to complete a detailed topographic and aerial imagery survey.
The drone data will be used to generate a detailed three-dimensional Digital Terrain Model (DTM) of the ground surface, which will be utilised in the excavation of the test-pit, detailed longer term mine design and infrastructure planning work that is currently underway as part of the technical studies.
In parallel with the ongoing resource estimation work at Cloud Nine, the company has commenced the permitting and approvals process.
This has included:
- the submission of a Program of Work (POW) application under the company’s current Exploration Licence, to the Department of Mines, Industry Regulation and Safety (DMIRS), to enable the excavation of a trial mining test-pit at Cloud Nine;
- applications to convert the current Exploration Licence to a full Mining Licence; and
- scheduling for the commencement of baseline environmental studies.
Exploration Manager, Tony Greenaway, said Kaolinite 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 to allow them to undertake their own product qualification testing.
The company has provided multiple small scale samples from Cloud Nine to the two parties. Preliminary discussions with both groups have included options to supply short term Direct Shipping Ore (DSO) products, as well as supplying value-added processed kaolinite and halloysite products in the longer term.
It is an exciting time for the project, with the first diamond drill core coming out of ground this week, work underway in the background to upgrade the current Inferred JORC resource, and multiple study pathways advancing,” Mr Greenaway said.
“The submission of the POW application for the trial mining test-pit and commencement of other approvals-based work is a key milestone for the project.
“We have been in detailed discussions with a number of potential offtake partners for both Cloud Nine kaolinite and halloysite products, and the shipment of bulk product samples from the planned test-pit will be a significant step forward.”
