Buldania-Norcott Project

Location

The Buldania-Norcott Lithium Project (Buldania Project) area totals 425km2 located ~35km east of Norseman (Western Australia), in close proximity to modern transport, energy and camp infrastructure.


Figure 1: Buldania Project – Location, tenure and regional geology plan

Geology and Mineralization

The Buldania Project is located at the far southern end of the Norseman - Wiluna Greenstone Belt within the Archaean Yilgarn Craton of southern Western Australia in a region well known for hosting significant lithium deposits including Mt Marion and Bald Hill (Figure 1). The Norcott Project covers the strategic extension at the same lithium propsective stratigraphy where multiple pegmatites have been observed.

Although there has been no previous lithium exploration on the Buldania Project, geological mapping have defined a large (2.3km x 1.5km), undrilled, spodumene-bearing pegmatite swarm (Figure 2). Individual pegmatites up to 400m long and 160m wide have been mapped at surface; however, true thicknesses are unknown due to the lack of drilling and structural data.

The project is adjacent to the eastern margin of a large, dome-shaped, granitic intrusion which is a similar geological setting to the Mt Marion and Bald Hill lithium deposits located further to the north.
Early reconnaissance rock chip sampling by Liontown (see ASX release dated 30th October 2017) has recorded multiple occurrences of high grade lithium mineralisation (>1.5% Li2O) over an extensive area, with better results including:

  • Sample 202146                       3.5% Li2O
  • Sample 202148                       2.8% Li2O
  • Sample 202152                       4.2% Li2O
  • Sample 202159                       4.6% Li2O
  • Sample 202161                       2.7% Li2O

Importantly, the mineralisation is associated with primary spodumene, with little apparent depletion of lithium that is sometimes observed in heavily weathered terrains.


Figure 2: Buldania Project – Liontown rock chip sampling

A full listing of statistics for rock chip sampling is provided in Liontown's Press release dated 30th October, 2017.


Figure 3: Buldania Project – Example of spodumene-bearing pegmatite

 

Acquisition Terms Buldania

The Buldania licences are held by Avoca Resources Pty Ltd, which is a wholly-owned subsidiary of Westgold Resources Ltd.
Liontown, through its wholly-owned subsidiary, LRL (Aust) Pty Ltd, will acquire the lithium and related metals (beryllium, caesium, niobium, rubidium, tantalum and tin) rights for the Buldania Project by:

  • Paying ongoing statutory rents and rates for the Tenements while the Agreement is current;
  • Spending a minimum of $100,000 on exploration or meeting the minimum statutory expenditure commitment (whichever is greater) on the Tenements within 12 months of the Execution date and before having the right to withdraw; and
  • Paying Avoca $2 per tonne of ore mined and 1.5% of the gross sales revenues in respect to any lithium or related metals extracted from the Tenements.

Avoca retains the rights to all other metals (excluding lithium and related metals) and has priority access for exploration.
The Tenements are covered by the Ngadju Determined Native Title Claim (WCD2014/004). Avoca has an Access Agreement with the Ngadju which will apply to Liontown’s exploration activities.

Acquisition Terms Norcott

The Norcott applications are held by private company Galahad Resources Pty Ltd.
Liontown Resources Limited through its wholly-owned subsidiary, LRL (Aust) Pty Ltd, has agreed to acquire the exploration licences by:

  • Paying Galahad an initial signing fee of $10,000; and

Once the applications are granted:

  • Reimbursing Galahad’s previous costs up to $20,000;
  • Paying Galahad $50,000 cash;
  • Issuing Galahad Liontown shares to the value of $50,000 based on a share price equivalent to the 5- day volume weighted average price for the 5 days prior to Completion; and
  • Paying Galahad a royalty equivalent to 1.25% of the gross revenue in respect to any minerals extracted from the Tenements.

The transaction is conditional upon ministerial consent to the transfer of the granted licences to LRL.