Latin Resources results support 2Bt target at Guadalupito Iron and Heavy Mineral Sand Project

Latin Resources (ASX: LRS) is continuing to unlock the vast potential of the Guadalupito Iron and Heavy Mineral Sand Project in Peru, with the latest results providing encouragement for the company.

Latin also confirmed an Inferred JORC Resource by September 2011, and has appointed Boart Longyear and Snowden Mining consultants.

The latest results of 192 exploration samples collected from 1 metre deep pits at the project confirm elevated heavy mineral contents, which were sampled along 13 kilometres of strike.

The average heavy mineral content (determined by TBE separation) of the first 192 samples was 6.9%, and the average heavy mineral content of the -1mm+52μm “Sand” fraction (that represents 48.7% of total sample mass) was 16.4%.

The samples contained on average 50% “Oversize” (+1mm) material which confirms previously reported suggestions that simple, low cost screening will significantly upgrade heavy mineral content.

Latin said the heavy mineral assemblage of the six samples was consistent and dominated by magnetite (average 41%) with low iron andalusite (average 13%), ferro-titanium oxides including ilmenite (average 11%), zircon (average 0.9%), ilmenorutile (average 0.6%), rutile (average 0.5%), titanite (1.8%) and Rare Earth Element (REE) bearing minerals (average 0.14%).

The most liberated minerals present were zircon (average of 86% as free particles), low iron andalusite (average of 82% as free particles), Magnetite (average of 60% as free particles), Ferro-Titanium minerals including Ilmenite (average of 40% as free particles).

Mineralogical test results show clean grains of liberated minerals which indicate good potential for low cost mineral processing.

Adding further to the potential of the project, gold content is also being analysed, with results pending.
Highlighting the extent of the mineralised sediment, the package is up to 3 kilometres wide and open to the north and the south.

Pit sampling has been completed on a 1 kilometre by 100 metre spacing along 25 kilometres of strike, with results still pending from 12 kilometres of the strike.

Chris Gale, managing director, said the company is encouraged by the confirmation of the extensive areas of elevated heavy mineral bearing sediments.

Importantly for these elevated areas is the dominance of magnetite with important levels of coincident heavy minerals including low iron andalusite, a variety of titanium minerals, zircon and Rare Earth Element (REE) bearing minerals.

“The enormous Iron and Heavy Mineral Sand potential of Guadalupito continues to be reinforced by positive exploration data that not only increases our confidence in the economics of the project, but also provides us with valuable information to guide future process development work.

“Clearly Guadalupito is taking shape not only as an Iron Sands project, but also as a robust multi-commodity mineral sands project of world class proportions."

Analysis

Acquiring an advanced project of the quality of Guadalupito is rare enough, with potential to become one of the world’s pre-eminent producers of magnetite and heavy mineral sands with potential for low cost development and production.

Importantly, for the project returns, capital costs are expected to be low as only very simple beneficiation will be required due to extensive weathering.

The scale and exploration target of 2 billion tonnes at Guadalupito plus its proximity to infrastructure and port tick more boxes.

The port town of Chimbote is just 25 kilometres away and proximity to one of the largest steel smelters in the country.

The recent investment by major global resources investor RMB Resources should send a signal that current valuation of Latin Resource at around $21 million is low with an upcoming JORC Resource milestone followed by Scoping Study milestone at end of 2011, as the company progresses Guadalupito towards production.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17702/latin-resources-results-support-2bt-target-at-guadalupito-iron-and-heavy-mineral-sand-project-17702.html