Resources expand at Latitude

26/05/2006 Robert Tyerman

Latitude Resources claims inferred copper resources at its Filipina Grande project in Chile could be worth a gross £1.9 billion.

AIM-quoted Latitude, which began life as Latin American Copper and is primarily focused on Chilean prospects, says an in-house estimate suggests Filipina Grande could contain 545 million lbs of copper, currently trading at around $3.5 per lb. Run by chief executive officer Martyn Konig, an experienced financier linked to veteran wheeler-dealer David Rowlands' 16 per cent Latitude holder, Resourceworks, the company has six properties in Chile and has raised money to accelerate the pace of exploration.

The other day, Latitude announced encouraging grades of 1.58 per cent copper and 38.5 per cent iron at another prospect, Santa Dominga. The company is contemplating joint venture possibilities at a copper porphyry project south of the Chilean capital of Santiago.

Konig takes pride in investments the company has made with shareholders' funds before deploying them on its own projects. These include US group Western Goldfields, whose shares have soared on prospects for its Mesquite mine in California (once owned by the late Sir James Goldsmith).

At 6.63p, valuing the company at £18 million, the shares might repay a strong-nerved punt, as long as mining markets regain their confidence.