LTR Latitude

RNS Number:4536X
Latitude Resources plc
31 May 2007




                             Latitude Resources plc


           Potential economic copper-gold project at Filipina Grande


  * SRK Consulting (Chile) S.A. ("SRK") completes review of internal
    Filipina Grande scoping study
  * New geophysical drill targets discovered in recently expanded
    landholding
  * Opportunity to increase resources significantly through further
    exploration to support an 8,000 tpd underground, copper-gold mining
    operation
  * Operation of this scale would give an NPV(10%), of US$88.7 million at
    US$1.40/lb copper/ US$500/oz gold and post Chilean royalties and taxes.
  * US$1.87 million in land payments saved this year by dropping
    sub-economic 98 hectare land package in northern part of project
  * Copper and gold grades increased with reduction in overall inferred
    resource tonnage


LONDON: 31 May 2007 - Latitude Resources plc ("Latitude" or "the Company")
(LTR.L) reports that SRK, independent geological consultants, has completed a
review of its Filipina Grande (Chile) IOCG project. The review was commissioned
to establish the scale of operation required for the project to be economically
viable as an underground copper-gold mine and whether sufficient exploration
potential exists to meet the required level of resource.

The review showed that the existing inferred resource at Filipina Grande,
defined by 10,000m of drilling over 288 hectares, was too small to be economic
but that an 8,000 tpd operation would be commercially viable, although would
require an inferred resource of approximately 60 million tonnes of similar grade
to that of the existing resource. It is the opinion of both Latitude management
and SRK that there is adequate exploration potential at Filipina Grande to
achieve this, within the known mineralisation and exploration potential of the
original project area and the further exploration potential of prospective new
drill targets in a recent expansion of the land tenure.


Large, new geophysical drill targets discovered in recently expanded landholding
                                      
In 2006 Latitude staked and acquired a large package of land surrounding the
original project bringing the total landholding in the area to approx. 11,300
hectares (almost a forty fold increase). A geophysical program of ground
magnetics and induced polarization was conducted over this increased land
holding and two large, new target areas were identified, immediately adjacent to
the original project area.

The SRK report comments that these targets are of 'particular interest' and the
target to the south of the known mineralized zone "...is a very promising
exploration target". Based on the size and intensity of these geophysical
anomalies, SRK commented, "...the new potential may be much greater than that
covered by the original concessions. Given Latitude's experience and relative
success in interpreting geophysics anomalies in the Filipina Grande project
area... this is a very positive factor in evaluating exploration potential."

Paste the following link into your web browser to view Map: 

http://www.rns-pdf.londonstockexchange.com/rns/4536x_-2007-5-30.pdf




Termination of option agreement and the revised inferred resources

As part of this review process, Latitude Resources has terminated an option
agreement with a third party covering a 98 hectare landholding in the north of
the Filipina Grande project area. The material occurring within this area,
predominantly oxide copper with some sulphides, is sub-economic and termination
of the agreement has saved US$1.87 million in option payments due by October
2007. Relinquishment of this land means that the overall inferred resource
tonnage at Filipina Grande has decreased but the grade has increased as follows:

+-----------------------------+------------------------+---------------------+
|Inferred Resources (*,**,***)|Sulphides               |Oxides               |
+-----------------------------+------------------------+---------------------+
|Original Resource Estimate   |16 Mt @ 1.12% Cu,       |11 Mt @ 0.64% Cu     |
|(May 2006)                   |0.31 g/t Au             |                     |
+-----------------------------+------------------------+---------------------+
|Revised Resource Estimate    |12 Mt @ 1.28% Cu,       |1.9 Mt @ 0.83% Cu    |
|(May 2007)                   |0.34 g/t Au             |                     |
+-----------------------------+------------------------+---------------------+


* Source: These estimates and this announcement has been reviewed and approved
by Barry D. Rayment BSc., PhD, Latitude's senior non executive Director, a
Mining Geologist of more than 30 years standing and a member of the SME.

** Standard: Inferred Resource estimates comply with the JORC standard
definitions

*** This asset is wholly owned by Latitude and so the table represents both the
gross and the net attributable estimates.


Opportunity to significantly increase resources to support an 8,000 tpd
operation

In order to support a mining operation of significant commercial value,
resources would need to be increased to support an operation of 8,000 tpd for 21
years. The Company believes the project may support a larger resource and SRK
reported "the chances of accomplishing this with further exploration are
considered quite positive. Furthermore, the larger concession area has
significantly increased the amount of prospective land on which to develop
future infrastructure for the project."



SRK estimate that an 8,000 tpd operation could generate the following economics:

+-----------------+---------------------------+----------------------------+
|                 |       Base Case 1*        |       Base Case 2**        |
+-----------------+---------------------------+----------------------------+
|Capital Cost     |      US$235 million       |       US$243 million       |
+-----------------+---------------------------+----------------------------+
|Resources        |  61.5 Mt @ 1.28% copper,  |  61.5 Mt @ 1.28% copper,   |
|included in mine |                           |                            |
|plan exercise ***|       0.34 g/t gold       | 0.34 g/t gold, 19.24% iron |
+-----------------+---------------------------+----------------------------+
|Life of Mine     |         21 years          |          21 years          |
+-----------------+---------------------------+----------------------------+
|NPV (5%)         |     US$231.3 million      |      US$310.4 million      |
+-----------------+---------------------------+----------------------------+
|NPV (10%)        |      US$88.7 million      |      US$131.4 million      |
+-----------------+---------------------------+----------------------------+
|Payback          |          7 years          |          5 years           |
+-----------------+---------------------------+----------------------------+
|IRR              |           18.6%           |           21.78%           |
+-----------------+---------------------------+----------------------------+


*Base Case 1. Copper-gold operation, US$1.40/lb copper, US$500/oz gold, post
tax, post royalties.

**Base Case 2. Copper-gold-iron operation, US$1.40/lb copper, US$500/oz gold,
iron concentrate value US$28/t, post tax, post royalties.

***For this conceptual review, the revised inferred resources plus the Company's
view of the potential of the project, supported by SRK, were considered.


The Filipina Grande project is at an early stage of development and therefore
certain assumptions with respect to the volume and quality of the resource have
been made. For evaluation purposes SRK used average or assumed values for
certain parameters; details of the most significant assumptions are given below:


1.   The study assumes adequate mineralised material to support an increase
     in resource to 61.5 Mt to sustain an 8,000 tpd operation over 21 years

2.   Rock Mass Rating (RMR): The study assumes a RMR of 60, which equates to
    'fair rock'. A significant reduction in RMR would increase the complexity of 
     the underground mining method, leading to decreased recovery and / or 
     increased costs.

3.   Metallurgy: ICP analysis on 712 mineralised samples shows the
     mineralization contains no deleterious impurities which can complicate the
     recovery of copper and gold. SRK assume a copper recovery of 86%, gold 75% 
     and iron 80%, based on empirical data from other mines in the region. SRK 
     recommend basic metallurgical process test work is undertaken.


Conclusion

In order to increase the resource base through further exploration a budget of
approximately US$1.5 million, to be spent over 10 months, has been estimated
which would effectively test the new target areas and determine the extent of
mineralization. It will also better constrain geotechnical and metallurgical
characteristics.

Latitude will commence the next phase of work immediately. Metallurgical testing
and geotechnical appraisal will be run in parallel to a detailed geological and
geophysical program to understand better the new targets prior to drilling.

For the purposes of AIM Rule 11, this announcement has been reviewed by
Latitude's senior non executive Director, Barry D. Rayment BSc., PhD, Mining
Geologist of more then 30 years standing and a member of the SME.

This announcement has also been reviewed by Raul H. Paredes, BSc., Mining
Engineer; 21 years experience in mining and management, Head of Mining Services
at SRK Consulting (Chile) S.A., the Leader of the SRK project reviewer team, and
accordingly SRK have confirmed that the contents are a true and fair reflection
of their findings and the report.


Ends


For further information please contact:

Latitude Resources plc
Martyn Konig, Chief Executive     
Phone                               +44 (0) 207 087 7971
Fax                                 +44 (0) 207 734 3870
Email: info@latituderesources.com

Bankside Consultants
Keith Irons                         +44 (0) 20 7367 8873
Simon Rothschild                    +44 (0) 20 7367 8871

Evolution Securities
Simon Leathers                      +44 (0) 20 7071 4315


Note:
Latitude's shares are traded on the AIM Market (AIM) of the London Stock
Exchange under the symbol LTR and are quoted in Sterling. No stock exchange,
securities commission or other regulatory authority has approved or disapproved
the information contained herein. The Directors of Latitude Resources plc accept
responsibility for the contents of this announcement.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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