(MENAFN - ProactiveInvestors - Australia) Latin Resources (ASX: LRS) has intersected good grades of iron along with some copper mineralisation from drilling designed to extend mineralisation at the Mariela Project in Peru.
Preliminary results from the first five new drill holes along more than 1 kilometre of strike confirm that a magnetic anomaly is associated with magnetite iron mineralisation.
Drill hole MA20-06 returned an assay of 61.2 metres at 40.4% iron from 455.85 metres followed by 17.5 metres at 34.5% iron from 538.9 metres.
Numerous other iron intersections of lesser thickness were obtained from the incomplete sampling of the other four holes with two of them intersecting multiple iron mineralised zones from 294 metres to 780.6 metres and from 90.6 metres to 561.1 metres, respectively, with grades ranging from 16.1% to 48.7% iron.
Copper was also seen in 67 individual samples selected for copper analyses. These showed values of up to 0.5% with a with a continuous interval of 5.34 metres assaying 0.34% copper.
"We are very pleased with these additional preliminary results which have extended the iron mineralisation zone to over one kilometre of strike confirming that Mariela is an important mineralised system with good Iron grades and suggested potential for associated copper mineralisation."
Preliminary results are available for seven holes with four holes currently being logged or assayed. Another five holes are underway with six drill rigs operating on the project.
The 20 diamond drill hole program is managed by joint venture partner Junefield under the Earn-In Option that allows Junefield to earn up to 70% of Mariela by funding all activities to the completion of a Bankable Feasibility Study or to a total cost of US35 million.
This targets primarily the magnetic anomaly for Marcona and Pampa del Pongo style massive magnetite mineralisation.
The Marcona iron deposit in south-central Peru contains 1,900 million tonnes at 55.4% iron and 0.12% copper and is the preeminent central Andean iron oxide deposit.
Pampa Del Pongo is fast catching up with an Inferred resource of 863 million tonnes at 41.3% iron and 0.1% copper.
Although covered by Quaternary sands, the Mariela anomaly occupies a similar geological setting to that of the Marcona and Pampa del Pongo deposits.
Like other deposits of this style there is also potential for co-incident copper-gold mineralisation.
The intersection in the first hole at Mariela can be compared favourably to the initial intersections of iron mineralisation reported by Cardero Resources from the Pampa del Pongo deposit, which is now owned by Nanjinzhao Group and located 400 kilometres further northwest along the Peruvian Coast.
The Mariela Project comprises seven contiguous mining concessions covering 5,200 hectares in the Islay Province of Arequipa in Southern Peru.
It is located immediately adjacent to a major road transport route and only 60 kilometres from the mining port of Ilo.
With the Junefield funded drilling continuing to return good iron grades and associated copper mineralisation, Mariela is shaping up to be a highly attractive project. The interval of 61.2m at 40.4% Fe from 455.85m is demonstrating the potential of the project.
Funded by Junefield up to 35 million or up to BFS, Junefield is likely to up the ante with exploration at Mariela. The copper grades are also interesting. The agreement allows Junefield to earn up to 70% of the Mariela Project, which provides Latin Resources with a free carry on a project starting to demonstrate its worth.
The project is located immediately adjacent to a major road transport route and only 60 km from the mining port of Ilo assisting with later development options.
Its similarities with other projects including the Pampa del Pongo deposit and Marcona deposit point towards its potential to become a large iron oxide copper gold deposit.