Kathleen Valley Project

Location

The Kathleen Valley Project comprises 15 granted Mining Leases and one Exploration Licence Application (ELA36/879), covering a total area of 75km2 and is located ~45km NNW of Leinster (Western Australia), in close proximity to good transport and energy infrastructure.The Mining Leases are currently held by Ramelius Resources which ceased gold mining operations in late 2016.


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

Geology and Mineralization

The overall package is located on the western edge of the Norseman- Wiluna Belt within the Archaean Yilgarn Craton, and forms the western edge of the Mt Keith- Perseverance Greenstone Belt.

The project contains a spodumene-bearing pegmatite swarm extending over an area of 3.5km by 1km and represents an outstanding, advanced lithium exploration opportunity with walk-up drilling targets. While previous workers recorded anomalous lithium and spodumene from the swarm, which is obscured to the north by transported cover, there has been no drill testing.

Work by Liontown in 2016 (see ASX release dated 6th September 2016) has defined two prospects – Mt Mann and Kathleen’s Corner – where multiple spodumene-bearing pegmatites with high-grade lithium (>2% Li2O) have been mapped (Figure 2)

  • The Mt Mann Pegmatite (Figures 2 and 3) has been mapped over a 1.4km strike length and widths varying from 10-26m with reported rock chip results of 3.9%, 1.5%, 1.8% and 1.2% Li2O (for an average of 2.1% Li2O) and an average Ta2O5 value of 195ppm.  It remains open to the north-west, where it is obscured by transported cover.
  • At Kathleen’s Corner, traversing by Liontown geologists confirmed the continuity of numerous shallowly-dipping, strongly mineralised pegmatites (up to 2.6% Li2O and 431ppm Ta2O5) over a strike length of 600m, with the strike length again obscured by transported cover.

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

Figure 2: Kathleen Valley Project – Mt Mann pegmatite outcrop

Figure 3: Kathleen Valley Project – photo looking southeast along Mt Mann pegmatite

Work Plan

Liontown has commenced discussions with Native Title claimants.  Discussions were positive and a heritage survey to clear planned drill sites is scheduled for December 2016.  An initial 3,500m drilling program is due to start in the March quarter of 2017.

Ramelius’ gold mining activities have ceased and are unlikely to affect Liontown’s planned exploration work.

Acquisition Terms

The acquisition of the Kathleen Valley Mining Leases are subject to a binding term sheet with Ramelius Resources Limited (RMS). Principal terms include:

  • Issuing to RMS 25 million fully paid shares at closing (complete);
  • 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

Related Documents

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