Latitude66 Advances Finnish Gold-Cobalt Project Amid Strategic Asset Sale
Latitude66 has made significant strides in its flagship KSB Project in Finland, initiating a scoping study and reporting promising exploration results, while also completing the sale of its non-core Australian Sylvania Project.
- Scoping study underway for KSB Project targeting 650,000oz gold and 5,840t cobalt
- High-grade K2 deposit identified as optimal starter pit with strong drill results
- Expansion potential confirmed at multiple prospects including K1NE, K6, K8, and K9
- Sale of Sylvania Project to Capricorn Metals completed for A$1.5 million plus royalties
- Appeal lodged against Finnish court decision on mining rights extension at KSB Project
KSB Project Development Accelerates
Latitude66 Limited (ASX: LAT) has reported robust progress in its December 2024 quarterly activities, with a clear focus on advancing its flagship Kuusamo Schist Belt (KSB) Project in Northern Finland. The company has commenced a scoping study based on an existing JORC Mineral Resource Estimate (MRE) of 7.3 million tonnes at 2.7g/t gold for 650,000 ounces and 0.08% cobalt for 5,840 tonnes. This study aims to define a viable project pathway and enable resource expansion through ongoing exploration success.
Post-quarter highlights include the identification of the high-grade K2 deposit as a prime starter pit option, supported by exceptional drill intersections such as 27.35m at 30.56g/t gold and 0.6% cobalt. These results underscore the deposit's potential for a low strip ratio open pit operation, a critical factor for project economics.
Exploration Success Across Multiple Prospects
Latitude66's exploration efforts have extended beyond K2, with promising results from the K1NE prospect, which returned gold-cobalt mineralisation proximal to the existing K1 resource. The company has also expanded its tenement holdings with new applications near K1, targeting high-priority electromagnetic anomalies.
Further north, the K6 prospect yielded exceptional boulder samples with gold assays up to 490g/t, indicating multiple follow-up targets. Drilling at the K8 prospect extended mineralisation strike by 32%, while K9 drilling confirmed down-plunge and along-strike extensions of high-tenor gold-cobalt mineralisation. These findings collectively enhance the resource growth potential within the KSB Project area.
PSB Project and Greater Duchess JV Progress
At the PSB Project, located approximately 150km west of KSB, initial fieldwork at the Vinsa prospect revealed high-grade copper-gold assays, including 11.3g/t gold and 20.1% copper from surface rock chips. The mineralised quartz vein system has been mapped over a strike length exceeding 1.3km, highlighting significant exploration upside.
Latitude66 also holds a 17.5% free-carried interest in the Greater Duchess Joint Venture in Queensland, Australia. Recent reconnaissance at the San Quentin prospect identified an 800m striking corridor of sub-cropping copper mineralisation with rock chip assays up to 6.7% copper, underscoring the JV's exploration potential.
Strategic Sale of Non-Core Asset and Corporate Updates
In a strategic move to focus on core assets, Latitude66 completed the sale of its 100% owned Sylvania Project in Western Australia to Capricorn Metals Limited for A$1.5 million in shares, plus contingent payments and net smelter royalties. This transaction realises latent value from a non-core Australian asset and strengthens the company’s balance sheet.
Corporate changes include the stepping down of Dr Steffen Hagemann from the board, transitioning to a technical advisory role as the company optimises its governance structure. Latitude66 remains well-capitalised with A$2.1 million in cash as of 31 December 2024, supporting ongoing exploration and development activities.
Regulatory and Legal Developments
Latitude66 has lodged an appeal with the Supreme Administrative Court of Finland following an adverse ruling by the Administrative Court of Northern Finland regarding the extension of mining rights over key zones within the KSB Project. The company maintains that the conditions for extension under Finnish mining law are met and continues to engage with authorities to safeguard its mining rights, which are critical for project advancement.
During the appeal process, Latitude66 retains mining rights and landowner consents across the Juomasuo area, positioning it strongly to continue exploration and development uninterrupted.
Bottom Line?
Latitude66’s focused advancement of its Finnish projects, coupled with strategic asset management, sets the stage for critical milestones in 2025, though regulatory hurdles remain a watchpoint.
Questions in the middle?
- How will the Supreme Administrative Court ruling impact the timeline and permitting of the KSB Project?
- What are the expected outcomes and timelines for the ongoing KSB Project scoping study?
- How will the board restructuring influence Latitude66’s strategic direction and operational efficiency?
