Latin Resources starts testing 1Bt Guadalupito iron, mineral sands resource
Latin Resources (ASX: LRS)
has started testing of its 1.073 billion tonne at 6.1% HM Los Conchales
Resource at its Guadalupito iron and mineral sands project in nothern
Peru.
The company is also in discussions with several potential
joint venture partners to take the Guadalupito Project through
feasibility and towards production.
This re-setting of its key
focus follows the sale of its five Mariela concessions in Southern Peru
to Junefield Group for US$2.5 million.
“We are very pleased to be
advancing with an important phase of testing that is expected to
provide the Company with process flow definition to commence the design
of the mineral separation plant to produce two very important value
products from Los Conchales,” managing director Chris Gale said.
In
addition, the company has requested quotes from several engineering
consultants to commence the Pre-Feasibility Study once the testwork has
been completed.
Testwork
The 2,000
kilogram bulk sample composite sample, which represents 20% of the 1.073
billion tonne at 6.1% HM resource, will be used to design a flow sheet
that will shape the design of the required minerals sands plant.
It
was prepared by combining weighted aliquots of 437 individual 1 metre
sonic drill samples from a portion of the Los Conchales resource area.
This contiguous area is accessible from surface and could be suitable for consideration within a future mine plan area.
The
calculated weighted average heavy mineral content of the composite
sample is 9.8% HM in the sand fraction, almost 20% higher in grade than
the equivalent measure of the overall Los Conchales resource.
Latin
noted the testing regime is designed to aid in the development of a
flow sheet for optimal recovery of magnetite and also the production of a
high purity andalusite concentrate, which are the most abundant
minerals and also the highest value mineral components in the Los
Conchales resource.
Andalusite
About 90% of the consumption of the Al2SiO5 (andalusite) minerals are for refractory use in the following areas:
-
The steel industry (e.g. lining of smelting furnaces in the form of
bricks, which depending on the raw material are called andalusite
bricks, kyanite bricks or sillimanite bricks, molds, plastic compounds,
refractory concrete, ramming mix, refractory mortar, etc.);
- The
non‐ferrous industry (e.g. lining of electric smelting furnaces for the
smelting of aluminium, copper‐rich bronze, brass and Cu‐Ni alloys, in
zinc smelting and gold refining);
- The glass industry (e.g. framework of glass mix tanks), and;
- The cement industry (e.g. lining of cement furnaces), for incineration plants and other industries.
The
Al2SiO5 minerals are also used outside of the refractory industry. Of
this material, ground andalusite (together with kyanite) is most
commonly used as a mass additive (source for Al and Si) in the
manufacture of sanitary and kitchen ceramics, tiles and
electro‐porcelain (high voltage insulators etc.) and brake shoes.
French company Imery’s supplies a significant quantity of the world’s market demand for andalusite products.
The
value of andalusite (South Africa) FOB 55% to 59% alumina in 2,000
tonne bulk lots, European port, increased to $463 to $562 per ton in
2012 from $466 to $540 per ton in 2011, according to the U.S. Geological
Survey.
Los Conchales
The Los Conchales
resource covers just 1,350 hectares of the 22,000 hectare Guadalupito
project on the coastal plain north of the Santa River in Northern Peru.
It
is located in unpopulated desert, adjacent to Panamerican Highway, just
15 kilometres from the Santa River, 25 kilometres by road to Peru’s
largest steel smelter and 29 kilometres by road to Chimbote Port.
Latin
has maintained ongoing community relations with the residents of the
nearest small population centre, “Campo Nuevo”, located more than 10
kilometres to the south and with other groups throughout the Guadalupito
District.
Analysis
Latin Resources is re-committing to its flagship Guadalupito project following the sale
of its Mariela concessions to Junefield Group with the start of
testwork on the Los Conchales Resource of 1.037 billion tonnes at 6.1%
HM.
Proving up the ability to recover both magnetite and
andalusite from the large Los Conchales is a key milestone in attracting
a development partner and will also aid in design of the mineral
separation plant.
A flowsheet for optimal recovery of magnetite for use as a potential
pig iron feed, and also a high purity Andalusite concentrate is a key
milestone.
Why? The major producer of Andalusite products, is a
French company, Imery’s with a Market Cap. of EUR4.2 billion which
supplies a significant quantity of the world’s market demand.
So
with the current value of Andalusite (South Africa) f.o.b. (free on
board) 55% to 59% alumina in 2,000‐metricton‐ bulk lots, European port,
at $463 to $562 per tonne in 2012, Latin Resource's Guadalupito Project
is starting to look attractive to a potential JV partner.
So it would not surprise to see interest in not only Guadalupito but also in Latin Resources given its Market Cap. of just $13 million.
