Latitude 66 has jagged 16 metres of disseminated sulphides at a depth of only 4 metres from a maiden exploration campaign hunting high-grade gold and copper satellite deposits near its flagship KSB project in northern Finland.
The shallow 12-hole reverse circulation (RC) drill program for 315 metres targeted two prospective zones called K6E and K6W.
The exciting samples will now be sent to the lab for assay – expected to take six weeks – but, ahead of that the company says the visuals tell a compelling story. The 16-metre hit sits within arm’s reach of a previously reported surface boulder sample of 8.8 grams per tonne (g/t) gold and 0.6 per cent copper, giving a tantalising taste of what treasures may lie beneath.
The sulphide zone, which peaked at 8 per cent pyrite also lines up well with a strong induced polarisation (IP) geophysical anomaly, which is exactly the type of target that underpins Latitude’s exploration strategy.
The company is now planning a rapid follow-up exploration program around the hit and to test similar targets in the immediate area.
The K6E and K6W targets sit just a kilometre south of the company’s 7.3 million tonne mineral resource base grading 2.7g/t gold and 0.08 per cent cobalt for 650,000 ounces of gold and nearly 6,000 tonnes of cobalt.
Throughout the drill campaign Latitude 66 has also been trialling new ways to reduce its environmental impact and increase drilling efficiency – something the company sees as a vital element of exploring in an area known for its outstanding natural beauty but not familiar with widespread RC drilling prior to mine development.
Latitude 66 managing director Grant Coyle said: “Following the robust scoping study results released last week, we are committed to developing the KSB Project and demonstrating the potential upside opportunities both in and surrounding the current Mineral Resource. Both the K6E and K6W Prospects form part of this strategy and we look forward to releasing the assay results from this drill program soon.”
The stunning visuals perfectly complement the company’s recent scoping study, which revealed a striking after-tax net present value (NPV) of US$310 million (A$492 million), calculated using an 8 per cent discount rate and a gold price of US$2500 (A$3968) per ounce. However, at today’s spot gold prices, that NPV skyrockets to a whopping US$433 million (A$690 million).
Even more impressively, the all-in sustaining cost (AISC) of production has been estimated at an incredibly competitive US$1038 per ounce, which drops to just US$996 once cobalt credits are factored in.
Capital expenditure to build the plant and fully prepare the site for mining has been set at a manageable US$101M (A$160M), which appears a solid investment considering the project is expected to pay for itself in less than 16 months.
With a bounty of additional targets waiting in the wings, assays on the horizon and a booming gold price – currently just shy of the magic A$5000 per ounce mark - the stars appear to be aligning for Latitude in what could be a golden run for the company in 2025.
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By James Pearson
