The Latin Resources Ltd (ASX: LRS) share price is having a strong day on Tuesday.
In morning trade, the lithium explorer's shares are up 9.5% to 11.5 cents.
Why is the Latin Resources share price racing higher?
Investors have been bidding the Latin Resources share price higher today following the release of an update on the company's Salinas Lithium Project in Brazil.
According to the release, the company has secured an additional highly prospective tenement, expanding the Salinas Lithium Project's footprint to the east to cover additional strike extensions of the regional prospective host stratigraphy.
Latin Resources has achieved this through an exclusive and binding 24-month option agreement over the new concession from Mineracao Salinas. This allows it to acquire a 100% interest in this tenement.
Positively, the Lajinha tenement is highly prospective, with known outcropping spodumene bearing pegmatites. Its addition expands Latin Resources' strategic land package to over 6,230 hectares in the Salinas lithium corridor.
Management commentary
Latin Resources' Managing Director, Chris Gale, was very pleased with the development. He commented
We are very pleased to have secured the Lajinha tenement area, we continue to expand our foothold in this developing regional lithium pegmatite field. Our preliminary reconnaissance mapping and outcrop sampling of this area has confirmed the presence of spodumene pegmatites. Our regional mapping team will now complete a more systematic survey to better understand the extent of the known pegmatite system and select initial drill sites.
Mr Gale also spoke positively about the company's ongoing drilling plans, which will support its first maiden JORC Resource at the Salinas Lithium Project. He adds:
With resource definition drilling underway at our main Bananal Valley area, first pass drilling underway at our Monte Alto area, first pass mapping and sampling completed at our Salinas South area; and now the initial systematic work to commence at the new Lajinha tenement – this provides the Company with a full project lithium development pipeline in the Salinas Region.
Now the company has made a significant new lithium discovery, this strategic expansion approach to our exploration is critical for long-term success of developing our first maiden JORC Resource.
Following today's gain, the Latin Resources share price is up almost 300% in 2022.
