The Latin Resources Ltd (ASX: LRS) share price bombed today, despite announcing good news this morning.
The mineral exploration company is a favourite with Reddit investors and, even after today's fall, currently has an incredible 12 month return of 1,600%.
At close of trade today, Latin Resources' share price is 5.3 cents.
Image source: Getty Images
What did Latin Resources announce?
The company announced this morning that the second batch of samples from its Noombenberry project have shown the same ultra-bright white kaolin and high-grade halloysite as the first batch.
Latin Resources is the sole owner of Noombenberry, located in Western Australia.
The company also stated today that it has plenty of cash to fund the additional drilling needed to extend the maiden resource estimate. Especially, due to the shallow nature of the minerals found and the consistency of assay results.
The announced today results included:
- 17 metres at 12% halloysite and 65% kaolinite from 3 metres, including:
- 3 metres at 23% halloysite and 65% kaolinite from 8 metres.
- 10 metres at 10% halloysite and 80% kaolinite from 2 metres.
- 16 metres at 7% halloysite and 65% kaolinite from 5 metres, including:
- 4 metres at 14% halloysite and 66% kaolinite from 9 metres.
and
- 17 metres at 5% halloysite and 87% kaolinite from 10 metres, including:
- 5 metres at 12% halloysite and 67% kaolinite from 22 metres.
Both kaolin and halloysite are clay-like materials. They both can be used in the production of porcelain and fine china, although, generally, only kaolin is used for this purpose. Halloysite is most often used in industrial applications, particularly in the refining of petroleum.
Management commentary
Latin Resources executive director Chris Gale said the company was pleased to see its initial results mirrored in this batch of samples.
We now have results for over 50 of our 197 holes drilled at Noombenberry, and we are seeing continuity and consistency of the high-grade halloysite and bright to ultra-bright white kaolinite. This is shaping up to be a very large and more importantly, a high-quality deposit that we expect will command strong attention from potential end-users.
Work is well underway on building our geological wireframes, so that we can be ready to commence the resource estimate as soon as all of our test work results have been received. The team is focused on fast tracking this process, as well as looking toward the next phase of drilling to extend our coverage to the north, where our initial results show the mineralisation remain open.
More about Latin Resources
Noombenberry is Latin Resources' first foray into mining kaolinite and halloysite. It has previously made a name for itself as a miner of gold, copper and lithium.
The company has mines in Australia and South America – mining gold in New South Wales; copper in Peru; and lithium in Argentina and Brazil.
Latin Resources share price snapshot
A true marvel, despite today's drop, the Latin Resources share price is currently up by 1600% over the past 12 months with a year to date return of 93%.
Latin Resources share price is now 5 cents, having dropped 1 cent since opening this morning.
The company has a market capitalisation of $81.1 million with approximately 1.3 billion shares outstanding.
