Kathleen Valley Project

Work Plan

Liontown commenced a ~3,000m Reverse Circulation (RC) drill program in mid-January 2018.

This second program is targeting extensions of high-grade mineralisation intersected in 2017 as well as testing beneath outcrops where surface sampling has returned numerous high grade lithium and tantalum values (Figure 1).

Figure 1: Kathleen Valley Project – Plan showing main prospect areas and better intersections and rock chip results from 2017 work program 

Location

The Kathleen Valley Lithium Project comprises four Mining Leases and one Exploration Licence Application located ~45km NNW of Leinster (Western Australia), in close proximity to modern transport, energy and camp infrastructure (Figure 2).


Figure 2: Kathleen Valley Project – Location, tenure and regional geology plan

Geology and Mineralization

The Kathleen Valley Project is located on the western edge of the Mt Keith-Perseverance Greenstone Belt which comprises part of the much larger Norseman-Wiluna Belt within the Archaean Yilgarn Craton of southern Western Australia.

The project contains a historically documented spodumene-bearing pegmatite swarm extending over an area of 3.5km by 1km. While previous workers recorded anomalous lithium and spodumene from the swarm, which is obscured to the north by transported cover, there had been no drill testing prior to Liontown acquiring the Project.

Liontown defined two prospects – Mt Mann and Kathleen’s Corner – where multiple spodumene-bearing pegmatites with high-grade lithium (>2% Li2O) have been mapped (Figure 1).

A full listing of statistics for rock chip sampling is provided in Liontown's ASX Announcement dated 6th September, 2016.

In February 2017, Liontown completed a maiden RC drilling program which tested the northern extension of the main targets areas (Figure 1). This drilling intersected strong lithium and tantalum mineralisation with better intersections including:

  • 58m @ 1.2% Li2O from 135m incl.
    • 13m @ 2.0% Li2O from 167m
  • 24m @ 1.3% Li2O from 206m incl.
    • 2m @ 2.6% Li2O and 217m 
  • 13m @ 1.6% Li2O from 0m incl
    • 9m @ 1.9% Li2O from 2m;
  • 13m @ 1.6% Li2O from 83m incl
    • 6m @ 2.0% Li2O from 88m;

A full listing of statistics for drilling is provided in Liontown's ASX Announcement date 20th March 2017

The results confirm the potential for significant high grade, spodumene related lithium and tantalum mineralisation at Kathleen Valley. Importantly, mineralisation outcrops and is fresh from surface.

Figure 3: Kathleen Valley Project – Mt Mann area /drill sections 

Acquisition Terms

The Kathleen Valley Mining Leases were acquired from Ramelius Resources and the following encumbrances remain:

  • Pay to RMS 1% of gross sales of resulting concentrate produced from the ores processed;
  • Pay to RMS $0.50 per tonne of rare metal pegmatite-hosted ore mined and milled; and
  • RMS will retain exclusive gold rights and uninhibited access for gold-mining related activities.

Xstrata (previous owner) retains rights to any significant nickel discovery over the land package via an Off-take and Claw-back Agreement.

Liontown will assume three historical third party royalty agreements that are not applicable to existing gold production by Ramelius.

EL36/879 is not affected by third party agreements.

Related Documents

Click here for JORC Tables.
Click here for Kathleen Valley Rock Chips Statistics