Latitude 66 Unveils Robust KSB Project Economics and Expands Exploration Horizons

KSB Project Economics and Development Outlook

Latitude 66 Limited (ASX: LAT) has delivered a significant milestone with the release of its March 2025 quarterly activities report, centered on the highly anticipated Scoping Study for its flagship KSB Gold-Cobalt Project in northern Finland. The study confirms the project’s potential as a standalone, economically robust operation, projecting a 7.2-year mine life with average annual production of approximately 65,000 ounces of gold and 465 tonnes of cobalt concentrate.

Financial metrics underpin the project’s attractiveness, with a post-tax Net Present Value (NPV8) of around US$310 million and an internal rate of return (IRR) of 74% based on a conservative gold price of US$2,500 per ounce. At current spot prices near US$3,000 per ounce, the NPV8 escalates to US$433 million with an IRR approaching 98%, highlighting the project’s sensitivity to gold price fluctuations and its strong margin potential.

Operational and Strategic Advantages

The KSB Project’s development plan features conventional open pit mining across the K1, K2, and K3 deposits, supported by a 750,000 tonnes per annum processing plant employing free milling CIL and flotation techniques. The project benefits from exceptional regional infrastructure, including grid power, sealed highways, and water treatment facilities, which collectively contribute to a relatively low capital expenditure estimate of approximately US$100 million and a rapid payback period of 16 months.

Operating costs are equally competitive, with all-in sustaining costs (AISC) estimated at US$1,038 per ounce of gold, or US$996 per ounce on a gold-equivalent basis, positioning the project well within the lower cost quartile of global gold producers. The cobalt component, representing about 25% of current European Union production, adds strategic value given cobalt’s classification as a critical mineral by both the EU and NATO, particularly for battery technologies and defence applications.

Exploration Progress and Expansion Potential

Latitude 66 continues to advance exploration at the KSB North Project, with a maiden Reverse Circulation (RC) drilling program recently completed at the K6E and K6W prospects. Visual identification of disseminated sulphides in drill core at K6W aligns with geophysical anomalies and surface geochemical results, suggesting promising mineralisation zones. Assay results are pending and eagerly awaited to validate these early indications.

Additionally, the company is evaluating low-cost expansion scenarios, including increasing throughput to 1 million tonnes per annum and beyond, with incremental capital investments ranging from US$13 million to US$40 million. These options, alongside underground mining potential and a carbon-neutral development model leveraging Finland’s non-fossil fuel power grid, will be further refined in an upcoming Prefeasibility Study.

Edjudina Project and Greater Duchess JV Updates

On the Australian front, Latitude 66 completed an extensive aircore drilling program at its 100%-owned Edjudina Project in Western Australia, targeting multiple gold-in-soil anomalies. The company also formalised a Drill for Equity agreement with Raglan Drilling, enabling flexible funding of drilling services through equity issuance, a strategic move to conserve cash while maintaining exploration momentum.

Meanwhile, the Greater Duchess Joint Venture in Queensland, where Latitude 66 holds a 17.5% free-carried interest, continues to benefit from encouraging drill results reported by joint venture partner Carnaby Resources. These results underscore the region’s exploration upside and potential for resource growth.

Corporate Developments and Financial Position

Corporate governance saw a notable change with the appointment of Jeremy Read as a Non-Executive Director, bringing extensive global mining and exploration expertise, particularly in nickel sulphides, copper, and gold projects. This appointment coincided with the departure of Heath Hellewell from the board.

Financially, Latitude 66 maintains a solid position with cash reserves of approximately A$1.7 million, no corporate debt, and disciplined expenditure aligned with exploration and evaluation activities. The company’s capital management strategies, including the Drill for Equity arrangement, reflect a prudent approach to funding ongoing and future projects.