The Latin Resources Ltd (ASX: LRS) share price is heading south today following the company's latest announcement to the ASX.
At the time of writing, the lithium explorer's shares are selling at 17 cents, down 10.53%.
What did Latin Resources announce?
Latin Resources shares are sinking regardless of the company's positive drilling results at the Bananal Valley Prospect.
In its release, Latin Resources advised it has recorded the thickest intersection to date from its ongoing drilling campaign.
As such, management believes that the results could represent a significant new lithium discovery at the Salinas Lithium Project. Both diamond drill holes returned the following:
- 4.25 metres at 1.32% Li2O from 125.4 metres (SADD005)
- 4 metres at 1.36% Li2O from 159.1 metres (SADD005)
- 21.1 metres at 1.2% Li2O from 208.8 metres (SADD006)
While the presence of thick high-grade lithium bearing pegmatites has been confirmed, the company will commence a systematic drilling campaign. This will be aimed at providing sufficient data to undertake a maiden mineral resource estimate for the Salinas Lithium Project.
The resource definition drill out is expected to comprise around 25,000 metres of diamond drilling. This will involve testing a full 800 metre strike length of the known high-grade pegmatites.
In addition, Latin Resources stated that drilling rig access to the Monte Alto site has now been established.
A planned 2,000 metre drilling campaign will test the strike extent of the outcropping spodumene bearing pegmatites. Coring operations are expected to begin any day now.
Management commentary
Latin Resources managing director, Chris Gale commented:
We continue to receive exceptional assay results from our Bananal Valley Prospect. This continues to get more encouraging every day.
We are also very excited to be commencing drilling at our new Monte Alto Prospect. Our mapping and outcrop sampling in this area has shown us that we have thick, high- grade lithium pegmatites outcropping over a considerable strike extent…
We are planning an initial 2,000m of drilling in two stages at Monte Alto and assay results should start flowing in May.
With the company recently raising $35,000,000, we have now expedited the drilling program by commencing our 25,000m resource definition drilling campaign at Bananal Valley.
With drilling now on multiple fronts, and more rigs on the way to site, we have really stepped up our pace in Brazil to fast track our pathway to an initial JORC Mineral Resource estimate.
About the Latin Resources share price
The Latin Resources share price has accelerated in the past year, gaining more than 250%.
While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds.
Based on the current share price, Latin Resources commands a market capitalisation of more than $286 million.
