Mohanga Lithium-Tantalum Project (Liontown - 100%)

Location

The Mohanga Project comprises three contiguous tenements covering a total combined area of approximately 177km2 located in central Tanzania approximately 40km NNE of the capital Dodoma and 400km WNW of Dar es Salaam (see Figure 1).

Figure 1: Map of Tanzania showing location of Liontown projects

History

Liontown secured the Mohanga Lithium-Tantalum Project in December Quarter of 2015 through a combination of tenement acquisitions and an option deal with a local company. Further details of the land status are provided below.

A number of lithium-bearing pegmatites had been recorded by historic (1962) government mapping and reconnaissance rock chip sampling by Liontown geologists returned significant lithium (>1% Li2O) and tantalum (>0.05% Ta2O5) values.

Liontown has completed its initial phase of exploration work including:

  • Detailed geological mapping;
  • First-pass rock chip sampling;
  • Wide-spaced soil sampling;
  • Trenching; and
  • Processing of regional geophysical data.

Results of the work confirm the Project’s potential to host high grade lithium and tantalum mineralisation with mapping and geochemical sampling defining an 11km by 2km, WNW trending area containing numerous prospective pegmatites (Figure 2).


Figure 2: Mohanga Project – Geology map showing pegmative distribution and most advanced prospect areas

Better results from Liontown's reconnaissance sampling include:

Trench MOHTR001 14.3 – 18.4m 4m @ 4.93% Li2O and 1,862ppm Ta2O5
Trench MOHTR002 20.2 – 22.5m 2.3m @ 1.79% Li2O and 712ppm Ta2O5
Trench MOHTR004 7.8 – 9.5m 1.7m @ 4.87% Li2O and 314ppm Ta2O5
  13.4 – 14.5m 1.1m @ 3.21% Li2O and 505ppm Ta2O5
Trench MOHTR007 36.5 – 42.5m 6m @ 407ppm Ta2O5

MOHTR001 and MOHTR002 are located at the Ipata prospect and the intersections are interpreted to define a continuous, WNW/ESE trending zone which is open along strike and at depth.

MOHTR004 and MOHTR007 were excavated at the Zati and Tresor prospects respectively and further trenching is required to determine the orientation of the mineralised pegmatites; however, both zones are interpreted to be open along strike.

Importantly, the detailed geological mapping indicates potential extensions to all defined prospects.

Geology

The Project is in the south eastern part of the Archaean Tanzanian Craton where it comprises a WNW-NW trending sequence of metasediments (quartzite, quartz-feldspar schist and graphitic schist), amphibolite schist and quartz-feldspar gneiss intruded by granite. The geological setting is considered analogous to the Greenbushes lithium deposit in southwest Western Australia, the world's largest pegmatite-hosted deposit.

Alkali ratios (K, Cs, Rb) from whole rock geochemical analyses of the initial reconnaissance samples from the Mohanga region indicate highly fractionated pegmatites which are more likely to contain incompatible elements such as lithium and tantalum (see Figure 3). In addition, historical reports from the Greenbushes and Pilgangoora lithium deposits in Western Australia show that the alkali ratios from several areas in the Mohanga region compare favourably.

Figure 3: Plot of alkali ratios for initial Mohanga rock chip samples

The alkali data also indicate more than one type of pegmatite with not all being prospective for lithium and tantalum. Further whole rock analyses will be completed on the recently collected samples to prioritise those pegmatites which are considered more prospective.

Land Status and Acquisition Terms

Liontown secured the Mohanga Lithium-Tantalum Project in the December Quarter of 2015 through a combination of tenement acquisitions and an option deal with a local company.

Two of the three tenements are wholly-owned and held directly by Liontown Resources (Tanzania), one of which being a granted prospecting licence (PL10724/2015) and the second being an application (No. 01458) that has been recommended for grant.

The third tenement (PL9067/2013) is subject to an Option Agreement with local company Central Mining Company which gives Liontown the right to acquire 100% of the PL. The main terms of the proposed Option Agreement between Liontown and Central Mining are:

  • LTR to make initial cash payments totalling approximately US$30,000;
  • 4 year option period with annual payments (from first anniversary) of US$15,000;
  • Purchase price of US$900,000 (plus 10% CGT) to acquire 100% of PL9067/2013; and
  • 1% NSR on future production which can be purchased at any stage for US$500,000.

Details of land status and Option Agreement are provided in the ASX announcement titled "Liontown secures lithium-tantalum exploration project in Tanzania, East Africa" released on 24th November 2015.
View announcement  PDF icon 24th Nov 2015 Liontown secures lithium-tantalum exploration project in Tanzania East Africa.pdf.

Related Documents

Click here to view JORC Criteria.
Click here for Mohanga Trench Statistics.