Latin Resources Limited is pleased to announce results from mineral separation testing undertaken and reported by CPG-Mineral Technologies in Carrara, Queensland, a leading mineral sands processing laboratory. The testing was undertaken on two, 500 kg, -6.33 mm composite samples prepared by the Company at its sample preparation and homogenisation facility at the Guadalupito project. One composite was prepared from 50 samples ranging from surface to 4 m depth from 17 shafts located throughout the north central portion of the Heldmaier JORC Inferred Resource Area (136Mt @ 5.5% HM). The other composite was prepared from 67 samples ranging from surface to 3.3 m depth from 32 shafts located throughout the Tres Chosas JORC Inferred Resource Area (256Mt @ 3.9% HM). Both samples are representative of the material that makes up the above water table portion of the previously announced JORC resources. Details of the composite samples appear in Appendix 1.

No testing has yet been completed on samples from the higher grade Los Conchales JORC Inferred Resource Area (1,073Mt @ 6.1% HM) located 2 km east of the Heldmaier area. The test results of both composites demonstrated that these were similar in separation characteristics highlighting the continuity between the two resource areas. High grade magnetite products were obtained from both composites using conventional wet Low Intensity Magnetic drum separators (LIMS), each  containing 63% Fe and less than 4% TiO2. The agnetite mass yield relative to the -1 mm fraction of the -6.33 mm head feed samples tested was 2.6% and 1.9% from the Heldmaier and Tres Chosas composites respectively. The gross mass yield from the Heldmaier composite compares favourably with results from Davis Tube Recovery (DTR) testing on the Heavy Mineral fraction separated from shaft samples from the Heldmaier area (reported 16 August 2012).

Additional characterisation of the Magnetite product stream by CPG showed that the -106 micron size fraction contained even higher grade magnetite (66.9% Fe) with further reduced titanium content (less than 3% TiO2). Gold concentrates were produced from both composite samples, representing an overall mass yield of around 0.007% of the -1 mm fraction of the -6.33 mm head feed and with grades of between 10 g/t and 19 g/t Au demonstrating that a respectable gold concentrate can be produced by conventional gravimetric methods. CPG recommends further work on larger samples to better quantify both mass  yields and gold contents but the recoverability of gold has been demonstrated.

A high quality Andalusite product (up to 58% Al2O3) was achievable by heavy liquid separation in this round of testing. It was demonstrated that titanium and phosphorus contaminants could be reduced by electrostatic separation techniques, but further testing is required to investigate optimizing physical
separation methodologies for the production of a high quality Andalusite product.

Zircon products were generated using conventional wet gravity, magnetic and electrostatic separation processes. The zircon quality was mostly in line with typical zircon product specifications with ZrO2 above 65% for both the Heldmaier and Tres Chosas composites. CPG recommends additional work by processing larger feed samples. Overall mass yields of between 0.02% and 0.04% of the -1 mm fraction of the -6.33 mm head feed compare favourably to previously reported Zircon contents from QEMSCAN analyses of the Heavy Mineral fraction generated from these composites (reported 16 August 2012).

Rutile products were unable to be achieved using conventional separators and it was necessary to use heavy liquids to isolate a rutile product for assay purposes. The quality of the rutile was in line with typical rutile product specifications, and CPG recommend further work with larger composites in order to
resolve separation issues.

Iron/Titanium oxide (Ilmenite type) products were produced using conventional magnetic and electrostatic separation techniques from both composites having TiO2 and Fe contents of 23% and 46% respectively. Overall mass yields of between 0.6% and 0.8% of the -1 mm fraction of the -6.33 mm head feed were significantly higher than expected from previously reported QEMSCAN analyses of samples of the Heavy Mineral fraction separated from these composites (reported 16 August 2012).

Latin’s Managing Director, Mr Chris Gale commented “We are very pleased to receive CPG’s report, the results from which are really Latin’s first round of properly focussed separation testing on bulk composites, despite these being still relatively small in size. With this work we have demonstrated the capacity to obtain a high quality magnetite product using conventional proven technologies and we are also now well on the way to doing the same with respect to Zircon, Gold, Andalusite, Rutile and Ilmenite”. He went on to say, “With such promising results from the Heldmaier and Tres Chosas areas, we are now very much looking forward to using this base knowledge to start testing much larger samples  from our new higher grade, more than 1 Billion Tonne resource area at Los Conchales, which in turn promises an even better mineral assemblage”.