Latin Resources secures surface rights over key Guadalupito tenements
Latin Resources (ASX: LRS)
has received surface rights over 11,521 hectares of land over key
mining concessions of the Guadalupito iron and mineral sands project in
northern Peru.
Importantly, the surface rights are a prerequisite for approval of most of the required permits to build and operate a mine.
The
rights cover the 1.073 billion tonne JORC inferred resource at Los
Conchales and much of the 4.5Bt conceptual exploration target.
They
allow unrestricted and exclusive access to the land overlying the
mining concessions for future exploration and development work,
including mining: provided other corresponding authorisations and
permits are obtained.
“We are very pleased to have achieved this
important milestone in the development of Guadalupito,” managing
director Chris Gale said.
“Obtaining surface rights for mining
projects in Peru is a significant accomplishment often only achieved
towards the end of feasibility and/or as part of the EIA approval
process.
“That Latin has this milestone under its belt is a
guarantee of access to the land which is required for approval of mining
permits at Guadalupito.”
He added the company continues
discussions with several potential partners for Guadalupito to take the
project through feasibility and towards production as soon as possible.
Latin
will now follow the administrative process to inscribe a definitive
mining easement over land title and associated mining concession titles,
which will consolidate unalienable and exclusive rights of access.
Surface Rights
The
land belonging formerly to the Regional Government of La Libertad were
handed over by the Peruvian Superintendent of National Assets as the
first and principle step in an application for a right of way over the
land made by the company.
La Libertad will now proceed with the
administrative process to grant the right of way such that this can be
inscribed over the land titles and mining concession titles in the
public registry.
An inscribed easement is one of the key
requirements to support approval of an Environmental Impact Assessment
for a mining operation at Guadalupito which is the principal permit
amongst a series of lesser related permits required to commence mining
operations.
Upcoming Activities
Latin is
expecting initial results in the first quarter of 2014 of the new phase
of testing being undertaken on a composite sample representing a higher
grade subset of the Los Conchales resource announced 24 October 2013.
These
results will then guide the design of bulk testing of the sample which
will follow to provide updated process flow information and sufficient
sample products for marketing purposes.
It is expected 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.
The 2,000 kilogram bulk sample represents 20% of the 1.073Bt resource at Los Conchales.
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
The receipt of the surface rights has de-risked Latin Resources’ Guadalupito project by opening the way for further exploration and development work, including mining.
Share price catalysts include:
- Results from testing of the composite samples;
- Receipt of a definitive mining easement; and
- Securing a partners to develop Guadalupito.
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