Pilbara’s Colina Resource Update Highlights Open Pit Mining Prospects Amid Market Uncertainty

Background and Acquisition

Pilbara Minerals Limited (PLS) has formally integrated the Colina Lithium Project in Brazil into its portfolio following the February 2025 acquisition of Latin Resources Limited. This move grants PLS full ownership of the Colina asset, complementing its existing lithium operations and strategic partnerships globally.

Updated Mineral Resource Estimate

The company has released a comprehensive Mineral Resource Estimate (MRE) for Colina, effective as of 30 June 2025. The estimate was independently prepared by SGS Geological Services Canada, leveraging data from 297 diamond drill holes totaling nearly 99,000 metres completed up to May 2024. The MRE confirms a total Measured, Indicated, and Inferred Mineral Resource of 70.9 million tonnes at an average grade of 1.25% lithium oxide (Li2O) for the main Colina Deposit, containing approximately 890,000 tonnes of lithium oxide.

In addition, the Fog’s Block Deposit contributes an Inferred Mineral Resource of 6.8 million tonnes at 0.87% Li2O, adding around 59,000 tonnes of lithium oxide. Together, these deposits represent a significant lithium resource base for Pilbara Minerals.

Geological and Technical Insights

The Colina Deposit is characterized by a northeast-southwest striking pegmatite system approximately 2.7 kilometres long and 0.9 kilometres wide. The mineralization primarily consists of spodumene, feldspar, and quartz, hosted within biotite-quartz schists. The resource model was refined through detailed geological interpretation and structural analysis, enabling a robust understanding of grade variability.

Sampling and assay protocols followed industry best practices, with diamond core samples taken at roughly one-metre intervals and analyzed for a suite of elements including lithium. The resource estimate applies a 0.5% Li2O cut-off grade, consistent with comparable lithium spodumene deposits in Brazil, and assumes open pit mining methods with reasonable prospects for economic extraction.

Operational and Environmental Considerations

Mining assumptions include open cut extraction with a minimum mining width of 2 metres and internal dilution limited to barren pegmatite or host rock within mineralized zones. Metallurgical testwork to date supports the amenability of the ore to Dense Media Separation processing, with an assumed concentrate recovery of 70%. Environmental licensing for the project has been secured, and Pilbara Minerals is advancing further metallurgical studies and environmental planning to support future development.

Future Exploration and Outlook

Exploration drilling recommenced in March 2025 under Pilbara Minerals’ ownership, targeting lateral extensions of the Colina Deposit and satellite deposits. The company anticipates providing an updated resource estimate in the June 2026 quarter, which could further enhance the project’s scale and value. This ongoing work underscores Pilbara Minerals’ commitment to expanding its lithium resource base in Brazil and strengthening its position in the global battery materials market.