Ilo Iron Ore Project (100%) – Iron

Location

The Ilo Project comprises both the Ilo Norte Project and the Ilo Sur Project. The Project sites are located in southern Peru, south of the Mariela Project.

The company currently has 22,000ha of granted concessions and 2,600ha of pending concessions.

Ilo Norte Exploration Targets

LRS has 7,300ha of controlled concessions within 7 blocks at Ilo Norte. The Ground magnetic and gravity surveys have been carried out over the concessions. The company has since identified a large iron skarn.

The altered and anomalous outcrops cover an area of 600m x 400m and is party surrounded by colluvial cover. The skarn consists of a stacked sequence, approximately 120m thick of interlayered calc-silicate altered volcanic rocks and iron-rich (magnetite and maghemite) horizons.

This package of altered and mineralised rocks dips east (into the hillside) at 20 to 30 degrees. Iron grades from 41 samples in the core of the skarn vary from 30.5% up to 34.6%. Approximately 800m to the south of the skarn target, there are several magnetite-rich veins of 0.5 to 1.5 meters width, which contain up to 62.3%Fe.

The company has undertaken an initial eight hole drill program at Ilo Norte along 1.25km of strike and 400m in width, Magnetite and copper mineralisation were confirmed from the samples, with the potential for gold mineralisation.

Grades of iron in the most significant intersections range from 10% to 20% and the most significant copper intersections range from 0.1% to 0.2%.

HOLE:ID	From	To	Interval	Cu (%)	Fe (%)	S(%)
IN-01	0	74	74m	0.13%	14.28%	2.57%
	76	96	20m	0.11%	13.78%	4.15%
	150	262	112m	0.06%	14.74%	3.31%
Including:	6	38	32m	0.14%	15.60%	1.44%
	24	62	38m	0.17%	13.98%	3.50%
	78	92	14m	0.13%	13.83%	4.31%
IN-02	24	144	120m	0.13%	20.38%	3.06%
	156	224	68m	0.03%	19.59%	3.70%
Including:	52	66	14m	0.55%	20.36%	4.05%
	78	88	10m	0.23%	20.05%	3.91%
	98	138	40m	0.05%	22.79%	2.88%
	162	194	32m	0.04%	22.47%	4.44%
IN-03	96	112	16m	0.27%	10.73%	1.18%
	250	276	26m	0.23%	10.43%	0.97%
Including:	88	102	14m	0.17%	12.76%	1.56%
IN-05	122	146	24m	0.01%	15.08%	3.25%
	274	322	48m	0.02%	14.12%	2.66%
Including:	132	142	10m	0.01%	16.89%	4.24%
	284	312	28m	0.01%	14.81%	2.64%

HOLE ID	From	To	Interval	Cu (%)	Fe (%)	S (%)
IN-06	0	22	22m	0.11%	17.36%	0.53%
	98	210	68m	0.07%	15.13%	3.40%
Including:	0	8	8m	0.19%	14.40%	0.88%
	110	128	18m	0.14%	15.63%	4.60%


IN-07	0	42	42m	0.14%	14.35%	0.13%
	98	132	34m	0.03%	16.54%	4.07%
Including:	16	28	12m	0.19%	16.67%	0.05%



IN-08	14	24	10m	0.23%	5.58%	0.10%
	154	164	10m	0.09%	16.70%	1.68%
	184	196	12m	0.11%	13.45%	2.18%
	208	218	10m	0.15%	12.21%	2.82%
	226	350	124m	0.04%	18.39%	3.26%
Including:	246	306	60m	0.07%	21.47%	3.64%

Table 1: Most Significant intersections from IIo Norte Drilling Results

Figure 1: Ilo Norte drill target area

Figure 2: Ilo Norte drill target area

Ilo Sur Target

The Company has been granted 10,200 hectares in twelve blocks at Ilo Sur, based on numerous occurrences of magnetite - maghemite veins, some exposed alteration and abundant covered areas. Latin Resources has a further two blocks totalling 2,000 hectares in application at Ilo Sur.

Ground magnetic and gravity surveys were also carried out over the Ilo Sur concessions. Mapping in the east block of the Ilo Sur property has identified a 300 x 300 meter area of several iron veins (4-6 meters long) and weak to moderate skarn alteration in volcaniclastic and volcanic intrusive rocks (sample results pending). This area is surrounded by sand or colluvial cover. This alteration zone is adjacent to a magnetic andesite dike.

Magnetic surveying in the area has produced a 'remnantly' magnetized circular anomaly of 200 x 300 meters, coincident with the vein and altered area - the remnant magnetism may be the product of a remnant polar reversal effect or was produced by hydrothermal alteration, which is common in skarn deposits.

Figure 3: View of Ilo Sur surface at geophysical anomaly

Figure 4: Ilo Sur drill target area