Lake Percy Lithium Project

Location

Liontown can earn up to 70% equity in the 41km2 Lake Percy tenement (EL63/1222) located approximately 430km east of Perth, Western Australia, at the northern end of the Lake Johnson greenstone belt (Figure 1).

Figure 1: Location of the Lake Percy pegmatite

Geology and Previous Exploration

The Lake Percy pegmatite field is located in the heart of the emerging Forrestania Lithium Province, which includes the Mt Cattlin spodumene mine (currently being commissioned by Galaxy Resources) and the Earl Grey project, where Kidman Resources has recently  completed a drill-out.

Historical exploration on the property has defined very large pegmatites more than 100m true thickness. Furthermore, soil sampling by Liontown in 2016 has defined strongly anomalous lithium values co-incident with these large pegmatites (Figure 2).  

Figure 2: Lake Percy Project – soil geochemistry (lithium) over interpreted bedrock geology

Work Plan

Liontown is very encouraged by the initial soil sampling and mapping results, which outlined very thick pegmatites coincident with lithium-in-soils anomalies. Similar soil sampling results at Bynoe, which shows similar surface weathering features, ultimately resulted in the discovery of spodumene mineralisation at depth.

Liontown will undertake further infill soil sampling before designing a maiden drilling program to test for primary lithium mineralisation.

Acquisition Terms

Liontown has agreed to terms with White Cliff Minerals whereby it may acquire up to 70% of the Lake Percy Project, on the following terms:

  • by spending A$1,000,000 on exploration within 3 years to earn 51% equity;
  • at its election, Liontown can increase its equity to 70% by spending an additional A$750,000 before the 4th anniversary of the JV Agreement execution; and
  • committing to spending $50,000 on exploration before having the right to withdraw from the joint venture.

Related Documents

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