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 modern transport, energy and camp infrastructure.


Figure 1: 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.

Figure 2: Kathleen Valley Project – Mt Mann pegmatite outcrop

Early work by Liontown (see ASX release dated 6th September 2016) 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.

In February 2017, Liontown completed a maiden RC drilling program which tested the northern extension of the main targets areas (Figures 3 and 4). This drilling intersected strong lithium and tantalum mineralisation with better intersections including:

  • 58m @ 1.2% Li2O and 156ppm Ta2O5 from 135m (KVRC0015), including:
    • 9m @ 1.8% Li2O and 220ppm Ta2O5 from 141m; and
    • 13m @ 2.0% Li2O and 138ppm Ta2O5 from 167m
  • 24m @ 1.3% Li2O and 139ppm Ta2O5 from 206m (KVRC0015), including:
    • 3m @ 1.6% Li2O and 105ppm Ta2O5 from 208m; and
    • 2m @ 2.6% Li2O and 271ppm Ta2O5 from 217m; and
    • 4m @ 1.6% Li2O and 145ppm Ta2O5 from 226m
  • 13m @ 1.6% Li2O and 114ppm Ta2O5 from 0m (KVRC0002), including:
    • 9m @ 1.9% Li2O and 107ppm Ta2O5 from 2m;
  • 13m @ 1.6% Li2O and 111ppm Ta2O5 from 83m (KVRC0002), including:
    • 6m @ 2.0% Li2O and 113ppm Ta2O5 from 88m;
  • 14m @ 1.7% Li2O and 163ppm Ta2O5 from 91m (KVRC0003), including:
    • 8m @ 2.0% Li2O and 130ppm Ta2O5 from 97m;

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

A full listing of statistics for drilling is provided in Liontown’s ASX release dated 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 4: Kathleen Valley Project – Mt Mann area/drill sections (see Figure 3 for location)

Work Plan

Liontown is seeking access to its main target areas and is in ongoing discussions with the Traditional Owners.

The Company has also lodged a Section 18 application with state government seeking statutory clearance to access the Mt Mann and Kathleen’s Corner areas.

Further drilling is scheduled for September/October 2017.

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