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🏹 MAJOR CATALYST ALERT: JORC Resource Estimate Lands in a Few Weeks


Published 28-APR-2021 13:07 P.M.


2 minute read

We invested in Latin Resources (ASX:LRS) in November 2020 and continue to maintain a significant holding.

We invested as we liked the potential in LRS’ halloysite/kaolin project. We sat on the sidelines as Andromeda Metals rose to a $496M market cap off the back of its impressive halloysite resource.

We took a position in LRS as we are hoping it can replicate similar success to Andromeda on its halloysite project in WA.

Whilst some of the buzz in LRS has come off a bit lately since its February highs of 10c, the share price looks to have consolidated around the 4.5c mark.

However now LRS is edging closer to a major catalyst.

LRS is now just a few weeks away from delivering its maiden JORC Mineral Resource Estimate - on track to be completed in May.

LRS’s Noombenberry project is one of Australia’s few known occurrences of ultra-high-grade halloysite – a naturally occurring nanotube.

$63M capped LRS vs $496M capped Andromeda Metals

Drilling assays so far have indicated that LRS’s project is comparable - if not better - than standout success Andromeda Metals.

The $496M capped Andromeda was one of the best performing stocks on the ASX last year and is a great example of how a micro cap explorer can unlock serious value in a halloysite project.

LRS is still only capped at $63.8M.

Its JORC resource estimate is due in a few weeks time - this is going to allow the market to better compare LRS to its bigger brother Andromeda.

The catalyst

LRS has received the final assay results required for it to move ahead with its maiden resource estimate - due in May just a few weeks from now.

The last batch of results were on trend with previous results showcasing the very impressive high-grade halloysite grades that are becoming synonymous with the Noombenberry Project.

LRS will now hand its current database of results over to independent resource consultants RSC Mining and Mineral Exploration, for an immediate start of the maiden mineral resource estimate.

What’s next

There’s plenty of work to be completed to support the Maiden JORC Resource Estimate, which means several more catalysts on the horizon:

  • Noombenberry site visit – scheduled for the week beginning 3 May 2021
  • Finalisation of domain wireframes - underway
  • Geostatistical data analysis and grade estimation
  • LRS now preparing to commence extensional drilling in the adjacent granted tenement (to the north) where further high-grade kaolin & halloysite mineralisation remains open

LRS has $4.5M in the bank as of December, with over $1.3 million received from the early exercise of options in CY 2021 to date. This means its work programs remain fully funded.

We are watching LRS with interest over the coming weeks, ahead of its major JORC resource catalyst.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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