Mohanga Lithium-Tantalum Project (Liontown - 100%)


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

Geology and Mineralisation

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 (Figure 2). The regional geological setting is considered analogous to the Greenbushes lithium deposit in southwest Western Australia, the world's largest pegmatite-hosted deposit.

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

Exploration work by Liontown has identified high-grade spodumene-related lithium and tantalum mineralisation at the Tresor prospect where a mineralised pegmatite zone at least 500m long has been defined (Figures 3).

Figure 3: Mohanga Project – Tresor prospect showing lithium in rock chip results

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, PL10724/2015 and PL10938/2016, are wholly-owned and held directly by Liontown Resources (Tanzania).

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:

  • 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.