en.Wedoany.com Reported - Latitude 66 (ASX:LAT) has identified multiple high-priority drilling targets from recently completed exploration at its Kuusamo Schist Belt and Peräpohja Schist Belt projects in Finland, with results that could materially expand the company's existing 650,000-ounce gold resource.
Exploration work identified the K1 conductor outside the current mineral resource envelope. The conductor is considered to have the potential to "materially expand" the existing resource, which comprises 650,000 ounces of gold and 5,840 tonnes of cobalt, with a scale of 7.2 million tonnes. Managing Director Grant Coyle stated that the immediate identification of stronger and more extensive conductors outside the existing K1 resource boundary at the KSB project supports the company's geological model and provides drill-ready targets with the potential to materially expand the current resource. At the Reutu area of the PSB project, the scale of the identified conductors is particularly encouraging.
The K1 conductor lies outside the current mineral resource envelope, and its extension direction has the potential to expand the existing resource. In the marginal area, analysis of five anomalous historical drill intersections defined a continuous conductor, including drill results such as 5.6 meters at 7.3 g/t gold, 2.3 meters at 4.1 g/t gold, and 3.5 meters at 2.6 g/t gold. Large-loop fixed-loop electromagnetic (FLEM) surveys confirmed and significantly strengthened the K1 conductor. Integrated downhole electromagnetic (DHEM) and FLEM modeling jointly delineated a continuous conductor extending 320 meters along strike and up to 650 meters down dip. Mineralization at K1 is closely associated with sulfide-rich horizons, with high-grade gold and cobalt associated with pyrrhotite, making electromagnetic surveys the preferred tool for identifying mineralization extensions.
At the PSB project, FLEM surveys at the Reutu prospect identified a large conductor measuring approximately 1,200 meters by 700 meters, sub-parallel to the near east-west trending Sihtunna fault. Modeling of the Reutu 1 anomaly defined a conductive plate extending approximately 1.1 kilometers along strike and down to a depth of approximately 680 meters down dip. The scale and structural setting of these conductors are considered highly prospective.
Latitude 66 plans to advance next-stage exploration and development activities in the second half of 2026. Rig assembly is underway, with drilling scheduled to commence later this quarter. The focus remains on resource growth and advancing development at the KSB project. A targeted diamond drilling program will test high-priority FLEM and DHEM conductors at KSB and PSB, including the K1 resource expansion target and the Reutu conductor. Additionally, technical work streams for the pre-feasibility study are ongoing, including mine design optimization, geotechnical and hydrogeological surveys, environmental baseline studies, and infrastructure assessments. In April, Latitude secured its tenure at KSB by submitting an exploration license.
A scoping study indicates the project could produce 65,000 ounces of gold and 465 tonnes of cobalt annually over a 7-year mine life, with a net present value of US$433 million (A$620 million), an internal rate of return of 98%, and capital expenditure of approximately US$100 million. The data is based on a spot gold price of US$3,000 per ounce as of March 2025.
