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