Liontown to maintain drilling momentum at key WA lithium projects
Drilling to re-commence before Easter at Kathleen Valley following on from the highly successful maiden drill campaign at Buldania, where a large number of assays are still outstanding.
- Assays pending for 30 holes of the recently completed 36-hole RC drilling program at Buldania,which intersected multiple spodumene-bearing pegmatites.
- New ~4,000-4,500m RC and diamond drill program to commence at Kathleen Valley beforeEaster.
Liontown Resources Limited (ASX: LTR) is pleased to advise that its strategy to rapidly advance its two key WA lithium projects is quickly gaining momentum, with follow-up drilling now set to begin at the Kathleen Valley Project following the successful maiden drilling campaign at Buldania.
At Buldania, located 30km east of Norseman, the Company last week completed a maiden 36-hole, 3,339m Reverse Circulation (RC) drilling program which tested beneath a number of spodumene-bearing pegmatites.
The main target area, Anna, was tested by 24 drill holes with significant widths of pegmatite intersected over >500m of strike, with the trend remaining open to the south-east. Assays received for the first two holes drilled into the Anna prospect confirmed strong sub-surface mineralisation (up to 16m @ 1.2% Li2O – see ASX release dated 12th March 2018).
Assays for the remaining 22 holes at Anna, as well as eight holes drilled into the Conda prospect, are expected within the next three weeks and further drilling will be planned once these results have been received and interpreted.
At Kathleen Valley, located near Mt Keith in the NE Goldfields, RC and diamond core drilling is scheduled to begin prior to Easter to follow up the high-grade lithium mineralisation intersected at the Mt Mann and Kathleen’s Corner prospects earlier in the year (see ASX releases dated 4th , 19th and 24th February 2018).
The program will comprise ~34 holes for 4,000-4,500m drilling and is designed to define the limits of the mineralisation, which remains open for both prospects. The results of this program will be used to plan in-fill resource definition drilling, using at least two rigs, which will follow on immediately afterwards.
Liontown is well funded following the sale of 13,077,342 Core Exploration Limited (ASX:CXO) shares which realised $809,874 (after costs) increasing the Company’s cash holding to ~$2.4 million. In addition, Liontown retains 26,164,683 CXO shares meaning it is well positioned to maintain exploration momentum at its lithium projects in Western Australia.
Gaining Momentum : Drilling Two High Potential Australian Lithium Projects
Liontown Resources is a mineral exploration company focused on the discovery of pegmatite-hosted lithium deposits in Australia. The Company has a strong financial position which enables it to aggressively pursue exploration. The company has acquired 100% of the lithium rights in two highly prospective projects with short to mid-term resource potential, close to established infrastructure.
Kathleen Valley (North-Eastern Goldfields, WA)
- Significant widths of high-grade lithium mineralisation (>2% Li2O) intersected in Phase 2 Reverse Circulation (RC) drill program.
- High grade lithium mineralisation has now been intersected over a >500m strike length at the main Mt Mann pegmatite with the zone open to the south and at depth.
- Multiple flat to moderately-dipping pegmatites (up to 20m thick) also intersected at Kathleen’s Corner.
- Planning is underway for in-fill drilling, including diamond core holes, as well to test for dip and strike extensions of the mineralisation.
- Growing resources potential as a high-grade lithium project in a well-established mining region.
Buldania (Norseman, WA)
- Highly encouraging initial results with multiple ore-grade lithium intersections recorded.
- Up to 4.2% Li2O recorded from rock chip sampling of spodumene-bearing pegmatites.
- Pegmatite swarm defined over 1.3km x 2km with individual pegmatites up to 400m long and 160m wide mapped at surface.
- Maiden Reverse Circulation (RC) drill program comprising of 3,000-3,500m is underway.
Plus exposure to a significant vanadium opportunity, an increasingly important member of the battery-related metal suite:
RJC Vanadium Project (Central QLD)
- Wholly-owned, ~1,000km2 area adjoining and partially incorporating the Lilyvale vanadium resource
*The potential grade and tonnage of the exploration target referred to above is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. See Presentation Appendix at the link above for full explanation of assumptions used to estimate ranges.
Liontowns’ lithium peers demonstrate the current
favourable resource valuations even for modest sized deposits.
The lithium market is expected to grow at ~17% p.a. and would need to increase 30x with 100% EV penetration
Buldania Lithium Project (WA)
Buldania is strategically located in an emerging lithium district
Rock chip sampling demonstrates widespread, spodumene-related lithium mineralization
*Subject to agreement with private group Galahad Resources. Liontown will have rights to all metals
Kathleen Valley Lithium Project (WA)
2018 drilling program off to a strong start with assays confirming
high-grade Li2O close to established infrastructure
Shallow high-grade lithium mineralisation intersected in
Phase 2 drill program (January 2018)
Follow up drilling to continue over the main prospects,
targeting depth and strike extensions
RJC Vanadium Project (QLD)
The RJC Vanadium Project is a strategic land position covering known resources and with excellent
infrastructure access. This project provides significant exposure to vanadium, a strongly performing
commodity and increasingly important member of the battery-metal suite.
outstanding track record of discovery success
The Company’s Chairman and major shareholder, Tim Goyder, is prominent Perth-based mining entrepreneur who heads up a stable of successful publicly listed companies including international gold developer Chalice Gold Mines (ASX: CHN) and Australian mineral explorer DevEx Resources (ASX: DEV).
Managing Director, David Richards has 30 years experience in mineral exploration in Australia, S.E. Asia and western U.S.A. His career includes exploration and resource definition for a variety of gold and base metal deposit styles and he led the team that discovered the multi-million ounce, high grade Vera-Nancy gold deposits in North Queensland. He has held senior positions with Battle Mountain Australia Inc, Delta Gold Limited and AurionGold Limited and was Managing Director of ASX-listed Glengarry Resources.
Non-Executive Director, Craig Williams is a geologist with over 30 years experience in mineral exploration and development. Craig co-founded Equinox Minerals Limited in 1993 and was President, Chief Executive Officer and Director prior to Barrick Gold's takeover of Equi-nox. He is currently Chairman of OreCorp Limited. He has been directly involved in several significant discoveries, including the Ernest Henry Deposit in Queensland and a series of gold deposits in Western Australia. In addition to his technical capabilities, Craig also has extensive corporate management and financing experience.
Non-Executive Director, Anthony Cipriano is a Chartered Accountant with 27 years accounting and finance experience. Anthony was formerly a partner at Deloitte and at the time of his retirement in 2013 he was the Deloitte National Tax Leader for Energy & Resources and leader of its Western Australian Tax Practice. Anthony has significant experience working across tax, accounting, legal and financial aspects of corporate transactions. Anthony is also a director of Lachlan Star Limited (administrator appointed) and Limeco Pty Ltd.
For the half-year ended 31 December 2017
Your directors submit the financial report for Liontown Resources Limited (“Liontown”) and the entities it controlled as at and for the half-year ended 31 December 2017 (“the Group”). In compliance with the provisions of the Corporations Act 2001, the directors report as follows:
The names of directors who held office during or since the end of the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Tim Goyder Chairman
David Richards Managing Director
Craig Williams Non-Executive Director
Anthony Cipriano Non-Executive Director
REVIEW OF OPERATIONS
1. Kathleen Valley Lithium Project (Western Australia) (100% of Lithium Rights)
The Kathleen Valley Project is located in Western Australia, approximately 680km north-east of Perth within the Eastern Goldfields of the Archaean Yilgarn Craton. Historical exploration had defined a large swarm of spodumene-bearing pegmatites at Kathleen Valley and an initial phase of drilling by Liontown in 2017 confirmed the potential for significant widths of high-grade lithium and tantalum mineralisation.
Statutory clearances required to undertake further drilling on the priority Mt Mann and Kathleen’s Corner targets were received during the period, and a 21 hole/2,700m Reverse Circulation drilling program was completed in early February 2018.
The second phase of drilling was designed to test along strike of previously reported 2017 intersections (up to 58m @ 1.2% Li2O) and beneath high grade (>1.5% Li2O) outcropping mineralisation.
At Mt Mann, high-grade lithium mineralisation has now been intersected over a strike length of more than 500m hosted by moderately south-west dipping pegmatites with the trend open towards the south and at depth.
Better intersections from the latest drill program include:
- 22m @ 1.2% Li2O from 26m (KVRC0020), including:
- 5m @ 1.7% Li2O from 26m; and
- 10m @ 1.6% Li2O from 34m
- 15m @ 1.4% Li2O from 18m (KVRC0024), including:
- 4m @ 1.8% Li2O from 23m; and
- 2m @ 2.0% Li2O from 29m
(NB true widths approximately 85-95% of downhole widths listed above)