Latin eyes offtake agreement after kaolin test pit work

2022-10-14

Oct. 13, 2022 - Latin Resources could soon lock in an offtake agreement for its WA-sourced kaolin after excavating a test pit and dispatching a batch of bulk sample material to a pair of potential customers.

The work forms part of a more extensive trial mining operation at its Cloud Nine deposit – an asset that Latin says is amongst the largest underdeveloped halloysite-kaolin plays in the country.

Early last year, the company tabled a maiden mineral resource at Cloud Nine, which suggested the deposit holds some 207 million tonnes of kaolinised granite.

According to the explorer, the figure includes a 123 million tonne domain of bright-white kaolinite and an 84 million tonne package of kaolin-halloysite bearing ore.

The prospective buyers will now run the ruler over Latin’s kaolin samples. If the material is up to par, it could provide a lucrative second commercial pathway for Latin who has recently been heavily focused on its Brazilian-based lithium operations.

Notably, this is the second time Latin’s potential buyers have called for samples.

Latin previously mobilised an array of smaller-scale kaolin samples to the parties for early product qualification testing.

Since then, the company has kept in touch and says discussions over a formal offtake agreement are ongoing. Included in the conversation is a potential option to supply the groups with a short-term delivery of direct shipping ore or “DSO” material.

Latin aims to supplement its buyer’s initial DSO-filled shopping basket with processed kaolin and halloysite products longer term.

ditionally, Latin has sent several kaolinite samples to a laboratory to evaluate the specimen’s rare earths content.

Management says kaolinitic clays, such as those found at Cloud Nine, often host high concentrations of rare earths.

Halloysite boasts an extensive array of industrial uses, including hydrogen storage, carbon dioxide capture, methane suppression, battery production, and nanotube technology.

Kaolin is usually used to manufacture paper and packaging, ceramics, paints and coatings, fibreglass, plastics and rubber. More recently, however, the material has received something of a new lease on life amidst its ongoing potential use in producing high purity alumina, or “HPA”.

Recent studies indicate HPA can be incorporated into a lithium-ion battery to boost its performance, durability and overall safety and it also has uses in LED lighting and even mobile phone facias.

As calls for greener energy solutions intensify, commodities capable of delivering cleaner power will inevitably rise.

Latin’s work with its potential buyers is crucial and any hint of an off-take agreement in the air in the near future will see Latin hit its straps in the market.