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LATIN RESOURCES LIMITED

(LRS)
Delayed Australian Stock Exchange  -  05/24 02:10:52 am EDT
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05/18Latin Resources Starts Resource Definition Drilling at Brazil's Bananal Valley; Shares Decline 7%
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Latin Resources : Salinas Lithium Project Update - Brazil

11/22/2021 | 05:39pm EDT

For personal use only

LATIN RESOURCES LIMITED

ACN: 131 405 144

Unit 3, 32 Harrogate Street,

West Leederville, WA

6007

P +61 8 6117 4798

E info@latinresources.com.au

W www.latinresources.com.au

23 November 2021

SALINAS LITHIUM PROJECT EXPANDED, AND DRILLING SET

TO COMMENCE IN FEBRUARY

HIGHLIGHTS

  • Latin Resources has secured two new lithium tenements, contiguous with its existing position, in the highly prospective Bananal Valley district in eastern Brazil.
  • Latins' lithium ground position, now expanded to 5,338 hectares, with multiple drill targets defined in the lithium corridor.
  • The Bananal Valley is within the Minas Gerais State - a rich mining region of Brazil, and home to the Grota do Cirilio Project under development by TSX-V listed Sigma Lithium Corporation.
  • Drilling permits lodged with drilling to commence February 2022.
  • Geology and recent assay results define highly compelling drill targets.
  • Priority drill targets identified where sampling returned high-grade results including 2.71% Li2O and 1.45% Li2O from spodumene bearing pegmatites, mapped over a strike length of over 1.2 kilometres.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to provide an update of recent and ongoing activities at the Company's Salinas Lithium Project in Brazil ("Salinas" or the "Project"), where the Company has defined multiple drill targets and submitted drill permits to commence drilling. The Company has also secured two new highly prospective tenements to grow its footprint at the project area (Figure 1) with known outcropping high-grade lithium spodumene bearing pegmatites.

Salinas is located in the highly prospective Jequitinhonha Valley district of Minas Gerais Province of eastern Brazil (Appendix 1). Minas Gerais hosts the Eastern Brazilian lithium pegmatite province, home to TSX-V listed Sigma Lithium Corporation and lithium producer Companhia Brasilia de Lítio (CBL).

Latin has secured an exclusive and binding 12-month option over two new concessions in the Bananal Valley 830.219/2017 & 831.799/2005, whereby Latin may acquire a 100% interest in these tenements contiguous with the Company's existing Bananal Valley Project. These two new tenements now position Latin with a very large land package of over 5,338 hectares in the newly defined Salinas lithium corridor.

Latin Resources' Managing Director, Chris Gale, commented "Our geological team is extremely keen to commence drilling in early 2022, testing multiple high priority targets at Salinas.

"In addition, the option agreement to acquire two tenements next door to Bananal Valley significantly increases the prospectivity of the Project, given the two new tenements contain outcropping high- grade lithium spodumene bearing pegmatites."

Page 1 of 7

For personal use only

Figure 1: Salinas lithium project location - Minas Gerais District, Brazil

DRILLING HIGH GRADE SPODUMENE PEGMATITES

The Company has finalised a total of 14 drill sites to test the outcropping high-grade Li bearing pegmatites identified in previous mapping and geochemical sampling programs. Drill permits have been submitted for the Phase I drillholes, with drilling scheduled to commence in February 2022. Additional permits for the follow-up Phase II holes will be lodged in the coming weeks.

The drilling is designed to test two priority target areas where sampling has returned multiple high- grade results including 2.71% Li2O and 1.45% Li2Oi from highly weathered spodumene bearing pegmatites, mapped over a strike length of over 1.2 kilometres within the Company's tenure.

The proposed drilling campaign will be the first drilling to test this highly anomalous and outcropping mineralised trend in an underexplored region that currently contains 100% of the Brazil's official lithium reserves.

Lithium, as a highly volatile element, is rapidly leached and depleted from weathered spodumene. Therefore, the presence of remnant lithium anomalism of this calibre in weathered outcrop is extremely encouraging and worthy of a targeted drilling campaign.

Page 2 of 7

For personal use only

Figure 2: Bananal Project - Planned Phase I and Phase II drill sites

Figure 3: LRS geology team on site at the Bananal Valley Project - Mineralised pegmatite identified in mapping,

with very weathered spodumene

Page 3 of 7

For personal use only

Figure 4: LRS geology team on site at the Bananal Valley Project - Mineralised pegmatite inside drainage

showing highly weathered spodumene in outcrop

OPTION AGREEMENTS OVERVIEW

Under the terms of the agreement, Latin has the option to acquire a 100% interest.

TENEMENT 8331.219/2017

  • To acquire the exclusive purchase option, Latin Resources (LRS) will issue a monthly payments of BRL 3,000 (~A$750), to the vendor for a period of 12 months. At any time during the 12 months, LRS have the right to exercise its option to purchase, at which point monthly payments will cease and purchase payments will begin.
  • Within 15 (fifteen) days of the date of the exercise date, LRS or its designated entity or individual shall pay or allocate to the vendor:
    • the total amount of US$20,000 cash; and
    • the total amount of US$10,000 in Ordinary LRS shares.
  • Within 15 (fifteen) days of the completion of twelve (12) months after the exercise date, LRS or its designated entity or individual shall pay to the Vendor the total amount of US$60,000.
  • If LRS exercises the option and acquires 100% of the concessions, the vendor will retain a transferable 3% net smelter royalty on all commercial sales from the Project. LRS will have the right to purchase this on fair agreeable commercial terms in the future.
  • In addition, if a Mineral Resource as defined by the JORC-2012 Code of at least 10Mt in any category with a grade of at least 1.3% Li2O is established within the concession, LRS will pay a bonus of US$50,000 cash plus US$50,000 in Ordinary LRS shares to the vendor.

Page 4 of 7

For personal use only

TENEMENT 831.799/2005

  • To acquire the exclusive purchase option, Latin Resources (LRS) will pay the fixed amount of US$10,000 within 30 (thirty) days from the latest signature date on this Agreement and the monthly amount of US$1,000 for the first (6) months as of 30 (thirty) days from the latest signature date on this Agreement.
  • Within 30 (thirty) days of the date of the Exercise, LRS or its designated entity or individual shall pay or allocate to the vendor:
    • the total amount of US$40,000 cash; and
    • the total amount of US$15,000 in Ordinary LRS shares.
  • Within 30 (thirty) days of the completion of twelve (12) months after the exercise date, LRS or its designated entity or individual shall pay to the Vendor the total amount of US$75,000.
  • If LRS exercises the option and acquires 100% of the concessions, the vendor will retain a transferable 3% net smelter royalty on all commercial sales from the project. LRS will have the right to purchase this on fair agreeable commercial terms in the future.
  • In addition, if a Mineral Resource as defined by the JORC-2012 Code of at least 10Mt in any category with a grade of at least 1.3% Li2O is established within the concession, LRS will pay a bonus of US$50,000 cash plus US$50,000 in Ordinary LRS shares to the vendor.

This Announcement has been authorised for release to ASX by the Board of Latin Resources.

For further information please contact:

Chris Gale

Sarah Smith

Executive Director

Company Secretary

Latin Resources Limited

Latin Resources Limited

+61 8 6117 4798

+61 8 6117 4798

info@latinresources.com.au

www.latinresources.com.au

Page 5 of 7

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Latin Resources Limited published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2021 22:38:05 UTC.


© Publicnow 2021
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Capitalization 231 M 165 M 165 M
EV / Sales -1
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Free-Float 91,4%
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